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Motorcar Parts Of America (MPAA)
NASDAQ:MPAA
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Motorcar Parts Of America
(NASDAQ:MPAA)
Rating:63Neutral
Price Target:―
Motorcar Parts Of America (MPAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$192.61M
Dividend YieldN/A
Average Volume (3M)180.69K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth4.26%
EPS Growth64.64%
CountryUS
Employees5,900
SectorConsumer Cyclical
Sector Strength57
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.28
Shares Outstanding19,435,705
10 Day Avg. Volume234,085
30 Day Avg. Volume180,689
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.45
Price to Sales (P/S)0.00
P/FCF Ratio-5.54
Enterprise Value/Market Cap2.13
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit2.71
Enterprise Value/Ebitda2.61
Forecast
1Y Price Target
$14.00Price Target Upside43.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Motorcar Parts Of America Business Overview & Revenue Model
Company DescriptionMotorcar Parts of America (MPAA) is a leading manufacturer, remanufacturer, and distributor of automotive aftermarket parts for passenger vehicles and light trucks. The company primarily operates in the automotive sector and focuses on providing high-quality replacement parts, including alternators, starters, brake calipers, and other related components. MPAA serves a wide range of customers, including auto parts retailers, wholesale distributors, and original equipment manufacturers (OEMs).
How the Company Makes MoneyMotorcar Parts of America makes money through the sale of its automotive aftermarket parts to a diverse customer base. The company's revenue model is primarily driven by its manufacturing and remanufacturing operations, which allow it to provide cost-effective replacement parts that meet or exceed OEM specifications. MPAA generates revenue through direct sales to major auto parts retailers, such as AutoZone and O'Reilly Auto Parts, as well as through wholesale distributors and OEMs. The company may also engage in strategic partnerships and contracts that enhance its market reach and distribution capabilities. Additionally, its remanufacturing process not only contributes to cost savings but also appeals to environmentally conscious customers, providing an added value proposition.
Motorcar Parts Of America Earnings Call Summary
Earnings Call Date:Jun 09, 2025
(Q4-2025)
| % Change Since: -18.12%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook with record sales and gross profit, effective debt reduction, and strategic market share gains. However, the impact of tariffs and noncash expenses resulted in a net loss for the year, adding some uncertainty to future performance.Q4-2025 Updates
Positive Updates
Record Net Sales and Gross Profit
Net sales increased by 5.5% to a record $757.4 million, and gross profit increased by 16.1% to a record $153.8 million for fiscal 2025.
Cash Flow and Debt Reduction
Generated cash from operating activities of $45.5 million and reduced net bank debt by $32.6 million to $81.4 million.
Successful Share Repurchase
Repurchased 542,134 shares for $4.8 million at an average price of $8.91 per share.
Market Share Growth in Key Segments
Continued success in brake-related applications and the heavy-duty aftermarket segment, with increased demand in Mexico.
Positive EBITDA Performance
EBITDA for fiscal 2025 was $50.3 million, with EBITDA before noncash and onetime cash expenses at $92.8 million.
Negative Updates
Impact of Tariffs
Tariff costs impacted gross profit by $4.6 million in Q4 and $5.9 million for the year, with ongoing uncertainty around their future impact.
Net Loss for the Year
Net loss for fiscal 2025 was $19.5 million or $0.99 per share, primarily due to noncash expenses of $25 million and onetime cash expenses of $6.9 million.
Noncash Expenses Impact
Noncash mark-to-market foreign exchange losses and core amortization expenses impacted results significantly.
Company Guidance
During the Motorcar Parts of America, Inc. fiscal 2025 fourth quarter and year-end conference call, the company provided several key financial metrics and guidance. For fiscal 2025, net sales increased by 5.5% to a record $757.4 million, and gross profit rose by 16.1% to $153.8 million. The company generated $45.5 million in cash from operating activities and reduced net bank debt by $32.6 million to $81.4 million. Looking ahead, Motorcar Parts of America expects net sales for fiscal 2026 to range between $780 million and $800 million, representing growth of 3% to 5.6%. Operating income is projected to grow between 4.3% and 10.4% year-over-year. The company noted that ongoing initiatives to enhance gross margins, along with strategic competitive advantages from tariff mitigation efforts, are expected to support these financial goals.Motorcar Parts Of America Financial Statement Overview
Summary
Motorcar Parts of America shows strong revenue growth and operational cash flow generation, but faces challenges with profitability and high leverage. The balance sheet indicates a significant debt load, which could impact financial stability. Positive cash flow from operations provides liquidity support, though the negative net income and return on equity highlight profitability concerns. The company needs to address these issues to strengthen its financial position.Income Statement
Motorcar Parts of America has shown consistent revenue growth over the years, with a TTM (Trailing-Twelve-Months) revenue increase of 5.02% compared to the previous annual period. However, the company is currently facing profitability challenges, as indicated by the negative net income margin of -2.31% for the TTM. Gross profit margin remains moderate at 20.02%, and EBIT margin is 4.81%, suggesting operational profitability, though it is impacted by high expenses leading to negative net profits.65
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 0.41, indicating significant leverage, which could pose risks in a volatile market. The equity ratio stands at 27.66%, showing a moderate level of equity financing. Return on equity is currently negative due to the company's net losses, which is a concern for shareholders. The overall stability is challenged by the high level of liabilities relative to equity, though total assets remain robust.58
Neutral
Cash Flow
Operating cash flow is positive at $25.74 million for the TTM, indicating strong cash generation from core operations. The free cash flow growth rate is declining compared to the previous year, but the company maintains a positive free cash flow to net income ratio, demonstrating efficient cash utilization. However, the operating cash flow to net income ratio is unfavorable due to negative net income.70
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 753.73M | 717.68M | 683.07M | 650.31M | 540.78M | 535.83M | Gross Profit |
| 150.86M | 132.55M | 113.96M | 117.86M | 109.46M | 118.40M | EBIT |
| 36.28M | 46.12M | 36.45M | 14.14M | 17.88M | 7.18M | EBITDA |
| 41.07M | 58.59M | 36.45M | 28.70M | 46.63M | 16.74M | Net Income Common Stockholders |
| -17.41M | -49.24M | -4.21M | 7.36M | 21.48M | -7.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 12.72M | 15.81M | 13.61M | 25.22M | 17.18M | 50.47M | Total Assets |
| 949.51M | 1.01B | 1.03B | 1.02B | 847.88M | 777.03M | Total Debt |
| 203.32M | 239.34M | 277.22M | 259.29M | 181.45M | 242.67M | Net Debt |
| 192.51M | 225.36M | 265.63M | 236.27M | 165.93M | 193.05M | Total Liabilities |
| 686.84M | 726.89M | 708.09M | 700.43M | 546.74M | 501.51M | Stockholders Equity |
| 262.67M | 285.11M | 320.48M | 315.26M | 301.14M | 275.52M |
| Cash Flow | Free Cash Flow | ||||
| 23.48M | 38.17M | -25.95M | -52.41M | 42.15M | 4.64M | Operating Cash Flow |
| 25.75M | 39.17M | -21.75M | -44.86M | 56.09M | 18.80M | Investing Cash Flow |
| -1.67M | -479.00K | -4.19M | -7.94M | -14.21M | -11.59M | Financing Cash Flow |
| -24.25M | -36.44M | 14.31M | 60.22M | -76.57M | 32.15M |
Motorcar Parts Of America Technical Analysis
Neutral
9.76
Price Trends
10.12
Negative
9.69
Positive
8.21
Positive
Market Momentum
-0.08
Positive
40.16
Neutral
12.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPAA, the sentiment is Neutral. The current price of 9.76 is below the 20-day moving average (MA) of 10.96, below the 50-day MA of 10.12, and above the 200-day MA of 8.21, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 40.16 is Neutral, neither overbought nor oversold. The STOCH value of 12.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MPAA.
Motorcar Parts Of America Risk Analysis
Motorcar Parts Of America disclosed 29 risk factors in its most recent earnings report. Motorcar Parts Of America reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Motorcar Parts Of America Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $665.15M | 11.69 | 9.00% | 4.10% | 13.53% | -4.76% | |
79 Outperform | $244.75M | 11.57 | 9.91% | ― | 5.54% | 398.82% | |
70 Outperform | $846.79M | 17.32 | 7.74% | ― | -0.51% | 9.10% | |
69 Neutral | $127.62M | 4.43 | 8.05% | ― | 18.33% | -26.25% | |
63 Neutral | $192.61M | ― | -7.17% | ― | 4.26% | 64.64% | |
62 Neutral | $6.76B | 11.06 | 2.80% | 6.66% | 2.68% | -24.89% | |
40 Underperform | $9.55M | ― | -80.07% | ― | -3.63% | 36.19% |
* Consumer Cyclical Sector Average
Performance Comparison
MPAA
Motorcar Parts Of America
9.76
3.55
57.17%
CAAS
China Automotive Systems
4.23
1.09
34.71%
SMP
Standard Motor Products
30.26
2.51
9.05%
STRT
Strattec Security
57.27
32.75
133.56%
SUP
Superior Industries International
0.32
-2.75
-89.58%
THRM
Gentherm
27.60
-22.91
-45.36%
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.