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CarParts.com Inc (PRTS)
NASDAQ:PRTS
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CarParts.com Inc
(NASDAQ:PRTS)
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Rating:48Neutral
Price Target:
$1.00
▲(31.58% Upside)
CarParts.com Inc's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and cash flow issues. Technical analysis shows a neutral trend, while valuation metrics highlight ongoing losses. Despite some positive developments in the earnings call, significant challenges remain.
Positive Factors
Revenue Growth
The 5% increase in revenue indicates a positive trend in market demand and effective sales strategies, suggesting potential for continued growth in the e-commerce and offline channels.
Mobile App Engagement
High mobile app engagement reflects strong customer loyalty and digital strategy success, which can drive sustained sales growth and customer retention.
Cost Optimization Initiatives
The cost optimization initiatives are projected to save $10 million annually, improving operational efficiency and potentially enhancing long-term profitability.
Negative Factors
Continued Net Loss
The ongoing net losses highlight persistent profitability challenges, which can strain financial resources and hinder the company's ability to invest in growth opportunities.
Gross Margin Decline
Declining gross margins suggest increased cost pressures and pricing challenges, potentially impacting future profitability and competitive positioning.
Marketplace Segment Pressure
Ongoing issues in the Marketplace segment could lead to competitive disadvantages and regulatory risks, affecting the company's ability to expand in this area.
CarParts.com Inc (PRTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.62M
Dividend YieldN/A
Average Volume (3M)1.34M
Price to Earnings (P/E)―
Beta (1Y)0.37
Revenue Growth-8.87%
EPS Growth-125.02%
CountryUS
Employees1,466
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.23
Shares Outstanding58,963,300
10 Day Avg. Volume1,259,446
30 Day Avg. Volume1,337,879
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit0.36
Enterprise Value/Ebitda-1.65
Forecast
1Y Price Target
$1.07Price Target Upside40.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
CarParts.com Inc Business Overview & Revenue Model
Company DescriptionCarParts.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 MoneyCarParts.com generates revenue primarily through the sale of automotive parts and accessories on its e-commerce platform. The company employs a direct-to-consumer model, allowing it to maintain competitive pricing while maximizing profit margins. Key revenue streams include online sales of aftermarket parts, shipping fees, and possibly affiliate marketing programs. In addition, CarParts.com may benefit from partnerships with automotive brands and suppliers, enabling it to expand its product offerings and enhance its market presence. Seasonal promotions and discounts also play a role in driving sales, contributing to the company's overall earnings.
CarParts.com Inc Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including positive adjusted EBITDA, record mobile app engagement, and revenue growth. However, these were offset by continued net losses, gross margin declines, and ongoing challenges in the marketplace segment due to tariffs and inflation. While there are promising cost optimization initiatives in place, significant challenges remain.Q2-2025 Updates
Positive Updates
Positive Adjusted EBITDA Achieved
In June, CarParts.com achieved positive adjusted EBITDA, indicating that strategic initiatives are beginning to deliver tangible results.
Record Mobile App Engagement
The mobile app now has over 1 million users and accounts for 12% of e-commerce revenues, reflecting stronger engagement from loyal customers.
Revenue Growth
Revenue for the second quarter was $151.9 million, up 5% from $144.3 million last year, primarily driven by growth in the e-commerce and offline channels.
Cost Optimization Initiatives
Actions taken, including closing the Virginia facility and streamlining corporate headcount, are expected to generate approximately $10 million in annualized cost savings.
Negative Updates
Continued Net Loss
GAAP net loss for the quarter was $12.7 million, compared to a loss of $8.7 million in the prior year period, driven by lower gross margin and higher marketing costs.
Gross Margin Decline
Gross margin for the quarter was 32.8%, down from 33.5% in the prior year period, primarily due to product mix and tariff impacts.
Marketplace Segment Pressure
Challenges in the Marketplace segment persist due to noncompliant products imported from China, impacting the competitive landscape.
Tariff and Inflation Challenges
Tariffs and inflation continue to weigh on consumer demand, particularly in discretionary categories, affecting pricing strategies and market stability.
Company Guidance
During the CarParts.com second quarter of 2025 conference call, the company provided guidance on several key metrics. The company reported a revenue increase to $151.9 million, up 5% from the previous year's $144.3 million, driven by growth in their e-commerce and offline channels. However, gross margin declined to 32.8% from 33.5% the prior year, primarily due to product mix and tariff impacts. The GAAP net loss was $12.7 million, compared to a $8.7 million loss the previous year, with the adjusted EBITDA loss at $3.1 million. The company highlighted its strategic focus on enhancing customer engagement, with their mobile app reaching over 1 million users and accounting for 12% of e-commerce revenues. To manage tariff impacts, they are exploring domestic sourcing and various cost mitigation strategies. Additionally, CarParts.com emphasized its ongoing strategic review process, aimed at maximizing shareholder value, and its initiatives to strengthen the business through AI and automation, with expected cost savings of approximately $10 million annually.CarParts.com Inc Financial Statement Overview
Summary
CarParts.com Inc faces significant financial challenges, particularly in terms of profitability and cash flow. Revenue growth is slightly positive, but the company struggles with negative margins and cash flow issues. The balance sheet shows increasing leverage, which could pose risks if profitability does not improve.Income Statement
CarParts.com Inc shows a challenging financial performance with negative net profit margins and EBIT margins in the TTM period. The revenue growth rate is slightly positive, but profitability remains a concern with consistent negative net income. The gross profit margin is relatively stable, indicating some efficiency in managing cost of goods sold, but overall profitability is weak.45
Neutral
Balance Sheet
The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.75 in the TTM period, which is manageable but has increased over time. Return on equity is negative, indicating that the company is not generating profit from its equity base. The equity ratio is not provided, but the increasing debt levels suggest potential risk if profitability does not improve.50
Neutral
Cash Flow
The cash flow statement reveals significant challenges, with negative operating cash flow and free cash flow in the TTM period. Despite a high free cash flow to net income ratio, the overall cash flow situation is concerning due to negative operating cash flow coverage. The free cash flow growth rate is positive, but this is from a low base, indicating volatility in cash generation.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 577.61M | 588.85M | 675.73M | 661.60M | 582.44M | 443.88M |
| Gross Profit | 191.55M | 196.74M | 229.41M | 230.89M | 197.28M | 155.37M |
| EBITDA | -41.68M | -20.07M | 10.04M | 14.83M | 1.13M | 8.27M |
| Net Income | -53.43M | -40.60M | -8.22M | -951.00K | -10.34M | -1.51M |
Balance Sheet | ||||||
| Total Assets | 189.58M | 210.57M | 257.86M | 238.40M | 235.34M | 186.97M |
| Cash, Cash Equivalents and Short-Term Investments | 19.77M | 36.40M | 50.95M | 18.77M | 18.14M | 35.80M |
| Total Debt | 46.73M | 41.33M | 38.13M | 46.65M | 46.39M | 31.58M |
| Total Liabilities | 127.14M | 125.40M | 145.02M | 128.33M | 139.77M | 103.48M |
| Stockholders Equity | 62.45M | 85.17M | 112.83M | 110.07M | 95.57M | 83.49M |
Cash Flow | ||||||
| Free Cash Flow | -15.78M | -10.23M | 38.01M | 2.78M | -18.57M | -28.83M |
| Operating Cash Flow | -9.74M | 10.34M | 50.00M | 15.37M | -6.99M | -19.07M |
| Investing Cash Flow | -10.36M | -20.56M | -11.90M | -12.52M | -11.55M | -9.76M |
| Financing Cash Flow | 5.81M | -4.42M | -5.92M | -2.15M | 902.00K | 62.36M |
CarParts.com Inc Technical Analysis
Negative
0.76
Price Trends
0.83
Negative
0.82
Negative
0.92
Negative
Market Momentum
-0.03
Positive
44.95
Neutral
36.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTS, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.86, below the 50-day MA of 0.83, and below the 200-day MA of 0.92, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 36.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRTS.
CarParts.com Inc Risk Analysis
CarParts.com Inc disclosed 52 risk factors in its most recent earnings report. CarParts.com Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CarParts.com Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | 491.09M | 16.74 | 61.13% | 9.42% | -8.56% | -57.78% | |
70 Neutral | 87.79B | 37.40 | -196.75% | ― | 5.15% | 5.33% | |
68 Neutral | 69.87B | 28.55 | -64.50% | ― | 2.43% | -3.34% | |
67 Neutral | 19.28B | 23.88 | 17.20% | 3.00% | 2.65% | -32.91% | |
54 Neutral | 3.66B | -9.35 | -15.47% | 1.67% | -22.50% | -35219.23% | |
48 Neutral | $46.62M | ― | -64.24% | ― | -8.87% | -125.02% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
PRTS
CarParts.com Inc
0.76
-0.14
-15.56%
AAP
Advance Auto Parts
59.83
19.44
48.13%
AZO
AutoZone
4,136.07
939.46
29.39%
GPC
Genuine Parts Company
136.26
-0.56
-0.41%
ORLY
O'Reilly Auto
104.58
28.18
36.88%
BWMX
Betterware de Mexico
12.92
1.06
8.94%
CarParts.com Inc Corporate Events
Business Operations and StrategyPrivate Placements and Financing
CarParts.com Secures $35.7M Investment for Growth
Positive
Sep 11, 2025
On September 8, 2025, CarParts.com entered into a purchase agreement with International Auto Parts, Axislink, and Lovely Peach, resulting in the issuance of shares and convertible notes totaling $35.7 million. This transaction, completed on September 10, 2025, represents a strategic investment by ZongTeng Group, A-Premium, and CDH Investments, signaling strong confidence in CarParts.com’s market position and growth strategy. The investment will enhance CarParts.com’s infrastructure and expand its product offerings, positioning the company for long-term growth in the $300 billion U.S. auto parts industry. Additionally, CarParts.com concluded its strategic alternatives review process, determining that this transaction offers significant shareholder value and operational capabilities for future growth.
The most recent analyst rating on (PRTS) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on CarParts.com Inc stock, see the PRTS Stock Forecast page.
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.