CarParts.com Inc (PRTS) AI Stock Analysis

• Market Cap: $52.62M
• Dividend Yield: N/A
• Average Volume (3M): 996.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: -8.35%
• EPS Growth: -74.31%
• Country: US
• Employees: 1,466
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.17
• Shares Outstanding: 70,477,660
• 10 Day Avg. Volume: 1,318,564
• 30 Day Avg. Volume: 996,539
• PEG Ratio: -0.04
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -0.73
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.44
• Enterprise Value/Ebitda: -3.18
• 1Y Price Target: $0.50
• Price Target Upside: -33.33% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.44
• Revenue Forecast (FY): $521.15M

• Rating: 47 Neutral
• Price Target: $0.76 ▲(1.07% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held back primarily by deteriorating financial performance (declining revenue, widening losses, and recent cash burn with a shrinking equity base). Technical indicators are constructive and provide partial support, but valuation is constrained by ongoing losses and no dividend data.

Positive Factors

Stable gross profit margin

A stable gross margin implies the company maintains pricing and sourcing effectiveness at the product level. That durability supports unit economics even amid revenue pressure, giving management a base to restore operating leverage and profitability if revenues stabilize or grow over the next several quarters.

Improving free cash flow

Material improvement in free cash flow signals progress converting operations into cash, easing near-term funding needs. Even if FCF is still negative, improvement enhances flexibility to reduce reliance on external capital, fund working capital, or invest in customer acquisition during a multi-quarter turnaround.

Stable equity ratio / asset structure

A stable equity ratio indicates the company’s asset base relative to equity hasn’t deteriorated, providing structural balance-sheet resilience. This stability improves capacity to absorb operating volatility, secure interim financing, or execute restructuring without immediate forced asset sales.

Negative Factors

Declining revenue growth

Sustained revenue decline erodes scale benefits and makes fixed-cost absorption harder, weakening long-term margins and cash generation. Without a credible revenue-stabilization plan, continued top-line contraction will constrain investment, pressure margins, and likely require external financing to bridge results.

Negative operating and net margins

Persistent negative EBIT and net margins mean operations do not generate profit even before financing costs. This structural unprofitability limits internal capital formation, raises dependence on external funding, and increases execution risk for scaling or marketing investments needed to regain market share.

Rising leverage

Increasing leverage raises refinancing and liquidity risk, especially alongside negative operating cash flow. Higher debt burdens reduce financial flexibility, elevate interest and covenant risk, and increase the likelihood of equity issuance or asset sales to shore up liquidity during a multi-quarter recovery.

CarParts.com Inc Business Overview & Revenue Model

Company Description

CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories to individual consumers through its network of e-commerce websites and online marketplaces. The company also sells auto parts to collision repair shops; markets Kool-Vue products to auto parts wholesale distributors; and aftermarket catalytic converters under the Evan Fischer brand. Its flagship websites include www.carparts.com, www.jcwhitney.com, www.autopartswarehouse.com and www.usautoparts.com. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.

How the Company Makes Money

CarParts.com generates revenue primarily through the sale of automotive parts and accessories on its e-commerce platform. The company earns money by sourcing a wide variety of products from manufacturers and wholesalers, which it then sells directly to consumers. Key revenue streams include sales of replacement parts, aftermarket accessories, and performance parts. Additionally, CarParts.com may leverage partnerships with automotive brands and manufacturers for exclusive product offerings or promotional collaborations that can drive traffic and sales. Factors contributing to its earnings include effective online marketing strategies, customer loyalty programs, and a growing trend of consumers opting for online shopping for automotive needs.

CarParts.com Inc Financial Statement Overview

Summary

Weak fundamentals overall: revenue has been shrinking, operating and net losses have widened, and cash flow has recently turned to cash burn. Balance-sheet leverage is moderate and gross margin is relatively stable, but a shrinking equity base reduces flexibility.

Income Statement

Revenue has been shrinking recently (down ~13% in 2024 and down ~2% in 2026), reversing the growth seen earlier in the period. Profitability is weak: gross margin is relatively steady around ~33–35%, but operating results have deteriorated from near breakeven in 2022 to deeper losses in 2024–2026, with net margins moving from roughly flat/low-single-digit losses to about -7% to -9%. The key strength is margin stability at the gross level, but the major weakness is the inability to cover operating costs, leading to persistent and widening net losses.

Balance Sheet

Leverage looks moderate, with debt-to-equity generally in the ~0.34–0.49 range and total debt declining into 2026. However, the equity base has compressed meaningfully (from ~$113M in 2023 to ~$53M in 2026), reflecting ongoing losses and reducing financial flexibility. Returns on equity are sharply negative in recent periods, which is the primary balance-sheet concern despite manageable debt levels.

Cash Flow

Cash generation has become inconsistent and recently pressured. The business produced strong positive operating cash flow and free cash flow in 2023, but swung to modestly positive operating cash flow and negative free cash flow in 2024, and then to negative operating cash flow and deeper negative free cash flow in 2026. A positive item is that cash flow has at times held up better than accounting earnings (e.g., 2023), but the latest period shows cash burn, which raises funding and liquidity risk if the trend persists.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	547.52M	588.85M	675.73M	661.60M	582.44M
Gross Profit	179.35M	196.74M	229.41M	230.89M	197.28M
EBITDA	-24.51M	-20.07M	10.04M	14.83M	1.13M
Net Income	-50.44M	-40.60M	-8.22M	-951.00K	-10.34M
Balance Sheet
Total Assets	184.86M	210.57M	257.86M	238.40M	235.34M
Cash, Cash Equivalents and Short-Term Investments	25.82M	36.40M	50.95M	18.77M	18.14M
Total Debt	54.64M	41.33M	38.13M	46.65M	46.39M
Total Liabilities	131.38M	125.40M	145.02M	128.33M	139.77M
Stockholders Equity	53.48M	85.17M	112.83M	110.07M	95.57M
Cash Flow
Free Cash Flow	-42.04M	-10.23M	38.01M	2.78M	-18.57M
Operating Cash Flow	-34.08M	10.34M	50.00M	15.37M	-6.99M
Investing Cash Flow	-7.90M	-20.56M	-11.90M	-12.52M	-11.55M
Financing Cash Flow	31.40M	-4.42M	-5.92M	-2.15M	902.00K

CarParts.com Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTS, the sentiment is Positive. The current price of 0.75 is above the 20-day moving average (MA) of 0.68, above the 50-day MA of 0.58, and above the 200-day MA of 0.69, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 64.09 is Neutral, neither overbought nor oversold. The STOCH value of 55.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRTS.

CarParts.com Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZO	67 Neutral	$60.33B	33.35	―	―	3.81%	-4.26%
CVNA	67 Neutral	$69.53B	41.28	62.85%	―	45.55%	5776.52%
GPC	63 Neutral	$15.90B	259.07	1.51%	3.33%	3.26%	-25.41%
ORLY	62 Neutral	$79.32B	30.60	-239.04%	―	6.19%	6.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AAP	48 Neutral	$3.02B	52.94	3.11%	2.53%	-19.41%	-957.94%
PRTS	47 Neutral	$52.62M	-0.61	-67.30%	―	-8.35%	-74.31%

CarParts.com Inc Corporate Events

CarParts.com Inc Transfers Listing to Nasdaq Capital Market

On December 15, 2025, CarParts.com Inc received approval from Nasdaq to transfer its stock listing from The Nasdaq Global Select Market to The Nasdaq Capital Market, effective December 16, 2025. This move grants the company an additional 180 days, until June 8, 2026, to comply with the minimum bid price requirement, as its shares had been trading below $1.00 for an extended period. The company plans to monitor its stock price closely and may consider a reverse stock split if necessary to meet compliance. Additionally, CarParts.com scheduled its 2026 annual stockholders meeting for May 11, 2026, with revised deadlines for stockholder proposals and director nominations due to the meeting’s earlier date compared to the previous year.

The most recent analyst rating on (PRTS) stock is a Hold with a $0.43 price target. To see the full list of analyst forecasts on CarParts.com Inc stock, see the PRTS Stock Forecast page.