CarParts.com Inc (PRTS) AI Stock Analysis

• Market Cap: $37.16M
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -8.87%
• EPS Growth: -125.02%
• Country: US
• Employees: 1,466
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.23
• Shares Outstanding: 58,963,300
• 10 Day Avg. Volume: 744,905
• 30 Day Avg. Volume: 1,107,934
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.36
• Enterprise Value/Ebitda: -1.65
• 1Y Price Target: $0.70
• Price Target Upside: 11.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $0.50 ▼(-20.63% Downside)

CarParts.com Inc's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and cash flow issues. While there are some positive developments from the earnings call, such as revenue growth and cost optimization initiatives, these are overshadowed by ongoing net losses and margin declines. The technical analysis also indicates a bearish trend, and the valuation metrics are unattractive due to a negative P/E ratio.

Positive Factors

Revenue Growth

The 5% revenue growth indicates a positive trend in market demand and effective sales strategies, suggesting potential for continued expansion in the e-commerce and offline channels.

Mobile App Engagement

High mobile app engagement demonstrates strong customer loyalty and provides a platform for future growth, enhancing the company's digital sales channel.

Cost Optimization Initiatives

Cost optimization efforts, such as facility closures and headcount streamlining, are expected to improve profitability and operational efficiency, supporting long-term financial health.

Negative Factors

Continued Net Loss

Ongoing net losses highlight financial instability, which could limit the company's ability to invest in growth and innovation, impacting long-term sustainability.

Gross Margin Decline

Declining gross margins suggest challenges in maintaining cost efficiency, which could pressure profitability and reduce competitive pricing flexibility over time.

Marketplace Segment Pressure

Persistent issues in the Marketplace segment, driven by noncompliant imports, could hinder competitive positioning and market share, affecting long-term growth prospects.

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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 0.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 0.63 is below the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.75, and below the 200-day MA of 0.87, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 39.49 is Neutral, neither overbought nor oversold. The STOCH value of 5.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRTS.

CarParts.com Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GPC	64 Neutral	$17.33B	21.46	17.05%	3.27%	3.26%	-25.41%
CVNA	64 Neutral	$67.37B	66.10	43.53%	―	45.55%	5776.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ORLY	60 Neutral	$80.40B	32.92	―	―	6.19%	6.98%
AZO	58 Neutral	$61.14B	25.27	―	―	2.43%	-3.34%
PRTS	46 Neutral	$37.16M	-0.66	-64.24%	―	-8.87%	-125.02%
AAP	41 Neutral	$2.89B	―	-23.85%	1.97%	-19.41%	-957.94%

CarParts.com Inc Corporate Events

CarParts.com Board Restructuring Amid Strategic Investments

On October 7, 2025, Henry Maier and James Barnes stepped down from the Board of Directors of CarParts.com, Inc. as part of agreements with strategic investors. This move reduced the board size from eight to six directors. The strategic investment from ZongTeng Group, A-Premium, and CDH Investments led to the appointment of Thomas Yunlong Man and Na ‘Mina’ He as board observers, bringing significant expertise in cross-border M&A and investment management. These changes are expected to strengthen CarParts.com’s strategic positioning and future growth.

The most recent analyst rating on (PRTS) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on CarParts.com Inc stock, see the PRTS Stock Forecast page.

CarParts.com Secures $35.7M Investment for Growth

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.

CarParts.com Earnings Call: Achievements Amid Challenges

CarParts.com Inc’s recent earnings call painted a mixed picture of the company’s current standing and future prospects. On the positive side, the company celebrated significant achievements in mobile app engagement and reported positive EBITDA results, indicating that strategic initiatives are beginning to bear fruit. However, these successes were tempered by challenges such as a decline in gross margin, an increased net loss, and pressures within the marketplace segment.

CarParts.com Reports Q2 2025 Financial Results

CarParts.com, Inc., headquartered in Torrance, California, is a technology-driven eCommerce company specializing in automotive parts and accessories, catering to vehicle repair and maintenance needs through its extensive online platform and mobile app.