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Motorcar Parts Of America (MPAA)
NASDAQ:MPAA
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Motorcar Parts Of America
(NASDAQ:MPAA)
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Rating:59Neutral
Price Target:
$14.00
▲(6.71% Upside)
Motorcar Parts Of America has a mixed outlook. The most significant factor is its financial performance, which shows steady growth but struggles with profitability and cash flow. The earnings call provided positive guidance, but technical indicators suggest bearish momentum. The high P/E ratio indicates overvaluation, further impacting the overall score.
Motorcar Parts Of America (MPAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$246.43M
Dividend YieldN/A
Average Volume (3M)194.70K
Price to Earnings (P/E)109.1
Beta (1Y)1.56
Revenue Growth6.72%
EPS GrowthN/A
CountryUS
Employees5,900
SectorN/A
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.16
Shares Outstanding19,558,016
10 Day Avg. Volume150,577
30 Day Avg. Volume194,703
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)0.73
Price to Sales (P/S)0.25
P/FCF Ratio4.57
Enterprise Value/Market Cap1.70
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit2.62
Enterprise Value/Ebitda5.67
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.15
Revenue Forecast (FY)$820.00M
Motorcar Parts Of America Business Overview & Revenue Model
Company DescriptionMotorcar Parts of America (MPAA) is a leading automotive parts manufacturer and distributor based in the United States, specializing in the production of aftermarket parts for a variety of vehicles. The company operates within the automotive industry, providing essential products such as alternators, starters, and other electrical components. MPAA serves a diverse customer base, including automotive retailers, wholesalers, and repair shops, ensuring a wide reach in the market for aftermarket automotive parts.
How the Company Makes MoneyMotorcar Parts of America generates revenue primarily through the sale of aftermarket automotive parts. The company's revenue model is based on manufacturing and distributing a comprehensive range of automotive components, which are sold to both retail and wholesale customers. Key revenue streams include direct sales to automotive retailers, partnerships with major distributors, and contracts with repair shops. Additionally, MPAA benefits from economies of scale in production, allowing it to offer competitive pricing while maintaining healthy profit margins. Strategic partnerships with retailers and distributors enhance market access, driving volume sales and contributing significantly to the company's earnings.
Motorcar Parts Of America Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance with growth in sales, profit, and operational efficiencies. However, challenges such as deferred purchases from a major customer and noncash expenses impacted the bottom line, resulting in a net loss for the quarter. Despite these challenges, the company remains optimistic about future growth and opportunities.Q2-2026 Updates
Positive Updates
Continued Sales and Profit Growth
Reported continued sales growth of $31.8 million or 8.4% for the first half, with gross profit improvement of $6.2 million or 8.8%.
Strong Cash Flow and Debt Reduction
Generated strong operating cash flow of $31.9 million and reduced net bank debt by $24.6 million.
Record Second Quarter Financial Performance
Net sales increased 6.4% to $221.5 million, and gross profit increased 3.5% to a second quarter record of $42.7 million.
Share Repurchases
Repurchased 287,910 shares for $3.4 million at an average share price of $11.65.
Growth in Key Markets
Increased demand for aftermarket products in Mexico and expanding presence in the heavy-duty rotating electric market.
Operational Efficiency Improvements
Focused on cost reduction initiatives and leveraging North American footprint to enhance margins.
Negative Updates
Impact of Deferred Purchases
Net sales for the quarter were affected by a delay in purchases from one of the largest customers, offsetting core revenue gains.
Noncash Expenses Impacting Margins
Gross margin impacted by noncash expenses of $3.6 million or a 3% impact to gross margin.
Net Loss for the Quarter
Reported a net loss of $2.1 million or $0.11 per share for the fiscal second quarter.
Company Guidance
During the Motorcar Parts of America, Inc. fiscal 2026 second quarter conference call, the company provided robust guidance with a focus on key financial metrics and growth opportunities. The company reported a 6.4% increase in net sales to $221.5 million and a gross profit rise of 3.5% to a second-quarter record of $42.7 million. Operating cash flow was strong at $21.9 million, and net bank debt was reduced by $17.7 million to $56.7 million. During the first half of fiscal 2026, sales grew by $31.8 million or 8.4%, and gross profit improved by $6.2 million or 8.8%. The company also repurchased 287,910 shares for $3.4 million at an average price of $11.65. Motorcar Parts of America remains committed to enhancing shareholder value, leveraging its North American operational footprint, and capitalizing on industry trends, such as the rising average age of U.S. light vehicles, which climbed to 12.8 years. The company is optimistic about the growth of its brake offerings and heavy-duty business, and the increasing demand in the Mexican market. The guidance reaffirms confidence in future performance with a strategic focus on operational efficiencies, market share expansion, and solid liquidity of approximately $161 million.Motorcar Parts Of America Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
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Motorcar Parts Of America Technical Analysis
Negative
13.12
Price Trends
14.60
Negative
14.54
Negative
12.49
Positive
Market Momentum
-0.41
Negative
41.86
Neutral
12.99
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPAA, the sentiment is Negative. The current price of 13.12 is above the 20-day moving average (MA) of 13.08, below the 50-day MA of 14.60, and above the 200-day MA of 12.49, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 41.86 is Neutral, neither overbought nor oversold. The STOCH value of 12.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MPAA.
Motorcar Parts Of America Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
80 Outperform | $329.63M | 13.84 | 10.85% | ― | 6.83% | 46.38% | |
75 Outperform | $5.99B | 14.14 | 8.96% | 2.67% | -1.90% | -13.86% | |
74 Outperform | $1.13B | 37.45 | 4.44% | ― | -0.10% | -53.49% | |
69 Neutral | $131.24M | 3.87 | 9.19% | ― | 16.72% | 5.35% | |
59 Neutral | $246.43M | 109.06 | 0.94% | ― | 6.72% | ― | |
45 Neutral | $168.10M | -5.18 | -12.26% | ― | -4.91% | -331.53% |
* Sector Average
MPAA
Motorcar Parts Of America
12.76
5.12
67.02%
CAAS
China Automotive Systems
4.35
0.47
12.11%
LEA
Lear
116.54
26.39
29.27%
SRI
Stoneridge
5.98
0.16
2.75%
STRT
Strattec Security
79.26
38.17
92.89%
THRM
Gentherm
37.11
-2.16
-5.50%
Motorcar Parts Of America Corporate Events
Executive/Board Changes
Motorcar Parts of America Director Resigns from Board
Neutral
Nov 12, 2025
On November 10, 2025, F. Jack Liebau, Jr. resigned from the Board of Directors of Motorcar Parts of America, Inc., including his roles on the Audit Committee and the Nominating and Corporate Governance Committee. His resignation was not due to any disagreements with the company’s operations, policies, or practices. Following his departure, the board’s size was reduced from ten to nine directors.
Executive/Board ChangesShareholder Meetings
Motorcar Parts of America Holds Annual Shareholders Meeting
Neutral
Sep 11, 2025
On September 4, 2025, Motorcar Parts of America, Inc. held its Annual Meeting of Shareholders where key decisions were made regarding the company’s governance and financial oversight. Shareholders elected directors to the board, ratified the appointment of Ernst & Young LLP as independent auditors for the fiscal year ending March 31, 2026, and approved the executive compensation on a non-binding advisory basis, indicating continued confidence in the current management and strategic direction.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.