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CarParts.com Inc (PRTS)
NASDAQ:PRTS
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CarParts.com Inc
(NASDAQ:PRTS)
Rating:46Neutral
Price Target:
$1.00
▲(13.64% Upside)
Positive Factors
Financial Performance
Gross margin of 35.2% increased 170bps sequentially as the company has begun focusing on higher margin customers.
Strategic Initiatives
The company laid out three initiatives: improve the online and mobile app platforms, optimize the product mix, and invest in marketing.
User Growth
The mobile app reached over 500K downloads which is more than double from the beginning of the year.
Negative Factors
Consumer Behavior
The company has been unfavorably impacted as customers have traded down to lower-quality products or deferred spending on certain auto repairs.
Financial Performance
Shares have been under pressure as financials have deteriorated y/y, and there is little confidence in a rebound in 2024 with the lower revenue guidance.
Revenue Decline
The company faced another quarter of consumer softness and was negatively impacted by its deliberate price increases which drove a 13% y/y decline in revenue.
CarParts.com Inc (PRTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.37M
Dividend YieldN/A
Average Volume (3M)610.43K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth-8.87%
EPS Growth-125.02%
CountryUS
Employees1,466
SectorConsumer Cyclical
Sector Strength80
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.23
Shares Outstanding58,963,300
10 Day Avg. Volume626,940
30 Day Avg. Volume610,430
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 Cap1.42
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit0.36
Enterprise Value/Ebitda-1.65
Forecast
1Y Price Target
$0.70Price Target Upside-20.45% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
CarParts.com Inc Business Overview & Revenue Model
Company DescriptionCarParts.com Inc (PRTS) is an online retailer specializing in automotive parts and accessories. The company operates primarily in the e-commerce sector, offering a wide range of products including replacement parts, performance upgrades, and maintenance supplies for various vehicle makes and models. CarParts.com focuses on delivering a convenient shopping experience through its user-friendly website, competitive pricing, and extensive product catalog, catering to both individual consumers and automotive professionals.
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
Positive
0.88
Price Trends
0.79
Positive
0.83
Negative
0.94
Negative
Market Momentum
>-0.01
Negative
54.59
Neutral
83.12
Negative
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 0.88 is above the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.79, and below the 200-day MA of 0.94, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 83.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $70.24B | 28.41 | -14.95% | ― | 5.15% | 1.99% | |
76 Outperform | $498.92M | 17.01 | 39.74% | 9.11% | -8.56% | -57.78% | |
72 Outperform | $19.38B | 24.00 | 17.50% | 2.91% | 2.65% | -32.91% | |
70 Neutral | $87.97B | 37.08 | -174.09% | ― | 5.15% | 5.33% | |
61 Neutral | $17.87B | 13.25 | -4.92% | 3.05% | 1.25% | -14.67% | |
48 Neutral | $3.66B | 59.62 | -24.78% | 1.64% | -22.50% | -35219.23% | |
46 Neutral | $48.37M | ― | -64.24% | ― | -8.87% | -125.02% |
* Consumer Cyclical Sector Average
Performance Comparison
PRTS
CarParts.com Inc
0.88
0.07
8.64%
AAP
Advance Auto Parts
59.57
16.90
39.61%
AZO
AutoZone
4,179.84
1,040.17
33.13%
GPC
Genuine Parts Company
136.03
-2.68
-1.93%
ORLY
O'Reilly Auto
103.19
27.40
36.15%
BWMX
Betterware de Mexico
13.37
1.73
14.86%
CarParts.com Inc Corporate Events
Delistings and Listing ChangesShareholder MeetingsRegulatory Filings and Compliance
CarParts.com Faces Nasdaq Non-Compliance Notice
Negative
Jun 13, 2025
On June 13, 2025, CarParts.com, Inc. received a notification from Nasdaq regarding non-compliance with the Bid Price Rule, as its stock price was below $1 for 30 consecutive business days. The company has until December 10, 2025, to rectify this by ensuring its stock price closes at $1 or more for ten consecutive days. Failure to comply may lead to delisting, though an additional compliance period could be sought. Additionally, CarParts.com held its 2025 Annual Meeting of Stockholders, where key proposals, including the election of directors and ratification of auditors, were approved.
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.