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CarParts.com Inc (PRTS)
NASDAQ:PRTS
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CarParts.com Inc
(NASDAQ:PRTS)
Rating:48Neutral
Price Target:
$1.00
▲(26.58%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
$47.24M
Dividend YieldN/A
Average Volume (3M)586.23K
Price to Earnings (P/E)―
Beta (1Y)0.60
Revenue Growth-14.49%
EPS Growth-210.54%
CountryUS
Employees1,466
SectorConsumer Cyclical
Sector Strength57
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.27
Shares Outstanding58,478,460
10 Day Avg. Volume460,288
30 Day Avg. Volume586,227
Financial Highlights & Ratios
PEG Ratio3.91
Price to Book (P/B)3.08
Price to Sales (P/S)0.00
P/FCF Ratio121.77
Enterprise Value/Market Cap7.76
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit1.98
Enterprise Value/Ebitda-5.16
Forecast
1Y Price Target
$0.80Price Target Upside1.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 Inc generates revenue primarily through the sale of automotive parts and accessories via its e-commerce platform. The company sources products directly from manufacturers and sells them to consumers at competitive prices. Key revenue streams include direct-to-consumer sales of replacement parts, performance parts, and accessories. The company benefits from its strategic partnerships with suppliers and manufacturers, enabling them to offer a wide selection of products while maintaining cost efficiency. Additionally, CarParts.com leverages data analytics to optimize pricing and inventory management, further enhancing its revenue potential.
CarParts.com Inc Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -13.19%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlights a challenging first quarter marked by declines in revenue, increased losses, and margin compression. However, positive developments include revenue growth in Q2, strategic focus on high margin opportunities, and effective inventory management, suggesting potential for recovery and growth.Q1-2025 Updates
Positive Updates
Revenue Growth in Q2
For the first six weeks of the second quarter, revenues were up double digits year-over-year on sequentially lower marketing spend.
Increased Focus on High Margin Opportunities
The company is focusing on high margin fee income, repeat customers, and mobile app traffic, which are at record levels.
Expansion of Wholesale Business
Over 700 new commercial customers were onboarded, with same and next-day last mile delivery launched in Texas and North Florida markets.
Strong Inventory and Supply Chain Management
The company proactively invested in inventory ahead of tariffs, with a low obsolescence risk and pre-freight margins over 50%.
Vertically Integrated Supply Chain Optimization
The company has scaled its supply chain with a product margin in the mid-50s percent and extra capacity to leverage as the business grows.
Negative Updates
Decline in Q1 Revenue
Q1 revenue was $147.4 million, down 11% from $166.3 million last year, influenced by inclement weather and softer consumer demand.
Increased Net Loss
GAAP net loss for Q1 was $15.3 million compared to a loss of $6.5 million in the prior year period, driven by lower gross margins and higher marketing costs.
Gross Margin Compression
Gross profit margin for the quarter was 32.1%, down from 32.4% in the prior year, affected by increased outbound transportation costs.
Adjusted EBITDA Loss
Adjusted EBITDA loss was $6.2 million, down from adjusted EBITDA of $1.1 million in the prior year period, due to soft consumer demand and increased competitive pressure in performance marketing.
Challenges with Tariffs and Consumer Demand
The company faced challenges with tariffs impacting pricing and consumer demand, alongside pressures from increased cost per click rates on search engines.
Company Guidance
During the first quarter of 2025, CarParts.com reported revenues of $147.4 million, a decline of 11% from $166.3 million in the prior year, attributed to inclement weather, softer consumer demand, and continued pressures in lighting and mirrors. The gross profit was $47.3 million, marking a 12% decrease, with a gross margin of 32.1%, slightly down from 32.4% the previous year. The GAAP net loss for the quarter was $15.3 million, compared to a $6.5 million loss in the prior year, primarily due to lower gross margins and higher marketing costs. Adjusted EBITDA loss was $6.2 million, down from an adjusted EBITDA of $1.1 million in the previous year. Despite these challenges, the company saw double-digit revenue growth in the early weeks of the second quarter, driven by a focus on repeat customers, mobile app traffic, and high-margin fee income, alongside strategic initiatives to optimize the supply chain and expand the product offering.CarParts.com Inc Financial Statement Overview
Summary
CarParts.com Inc faces significant challenges with declining revenues and profitability, reflected in negative margins and reduced cash flows. The elimination of debt showcases strong balance sheet management, yet the negative ROE and cash flow issues underline the need for operational improvements to sustain long-term growth in the competitive specialty retail industry.Income Statement
The company has shown a decline in revenue from $675.7M in 2023 to $588.8M in 2024, equating to a revenue growth rate of -12.9%. Gross profit margin decreased from 33.9% in 2023 to 33.4% in 2024. Net profit margins have also deteriorated, moving further into the negative territory from -1.2% to -6.9%. Additionally, both EBIT and EBITDA margins are negative, indicating operational challenges.45
Neutral
Balance Sheet
The balance sheet reflects a stable equity ratio of 40.4% in 2024, showing solid equity backing. The company has eliminated its debt, improving the debt-to-equity ratio to 0, which reduces financial risk. However, the return on equity (ROE) is negative due to the net loss, indicating challenges in profitability despite a robust capital structure.65
Positive
Cash Flow
The operating cash flow has declined significantly from $50M in 2023 to $10.3M in 2024, indicating reduced cash generation from operations. Free cash flow turned negative at -$10.2M, as capital expenditures exceeded operating cash flows. This highlights concerns around the company's ability to generate sufficient cash to cover investments and operations.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 569.93M | 588.85M | 675.73M | 661.60M | 582.44M | 443.88M | Gross Profit |
| 185.69M | 196.74M | 229.41M | 230.89M | 197.28M | 155.37M | EBIT |
| -49.26M | -40.63M | -9.88M | 651.00K | -8.87M | 508.00K | EBITDA |
| -33.16M | -20.07M | 10.04M | 14.83M | 1.13M | 8.27M | Net Income Common Stockholders |
| -49.41M | -40.60M | -8.22M | -951.00K | -10.34M | -1.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 38.53M | 36.40M | 50.95M | 18.77M | 18.14M | 35.80M | Total Assets |
| 216.46M | 210.57M | 257.86M | 238.40M | 235.34M | 186.97M | Total Debt |
| 0.00 | 41.33M | 38.13M | 46.65M | 46.39M | 31.58M | Net Debt |
| -38.53M | 4.93M | -12.82M | 27.89M | 28.25M | -4.22M | Total Liabilities |
| 143.69M | 125.40M | 145.02M | 128.33M | 139.77M | 103.48M | Stockholders Equity |
| 72.77M | 85.17M | 112.83M | 110.07M | 95.57M | 83.49M |
| Cash Flow | Free Cash Flow | ||||
| -3.14M | -10.23M | 38.01M | 2.78M | -18.57M | -28.83M | Operating Cash Flow |
| 12.19M | 10.34M | 50.00M | 15.37M | -6.99M | -19.07M | Investing Cash Flow |
| -15.24M | -20.56M | -11.90M | -12.52M | -11.55M | -9.76M | Financing Cash Flow |
| -4.46M | -4.42M | -5.92M | -2.15M | 902.00K | 62.36M |
CarParts.com Inc Technical Analysis
Negative
0.79
Price Trends
0.86
Negative
0.95
Negative
0.95
Negative
Market Momentum
-0.01
Positive
42.27
Neutral
17.75
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 0.79 is below the 20-day moving average (MA) of 0.87, below the 50-day MA of 0.86, and below the 200-day MA of 0.95, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 17.75 is Positive, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $16.50B | 19.52 | 19.19% | 3.46% | 1.99% | -32.18% | |
68 Neutral | $60.28B | 24.39 | -14.95% | ― | 5.15% | 1.99% | |
68 Neutral | $75.50B | 32.47 | -174.09% | ― | 4.90% | 3.28% | |
62 Neutral | $6.76B | 11.07 | 2.80% | 6.34% | 2.68% | -24.87% | |
61 Neutral | $328.76M | 10.96 | 42.07% | 15.34% | -5.05% | -55.00% | |
55 Neutral | $2.91B | 59.62 | -23.77% | 2.06% | -16.55% | -941.57% | |
48 Neutral | $47.24M | ― | -54.32% | ― | -14.49% | -210.54% |
* Consumer Cyclical Sector Average
Performance Comparison
PRTS
CarParts.com Inc
0.79
-0.42
-34.71%
AAP
Advance Auto Parts
49.42
-14.78
-23.02%
AZO
AutoZone
3,655.33
664.98
22.24%
GPC
Genuine Parts Company
119.77
-17.24
-12.58%
ORLY
O'Reilly Auto
89.69
17.57
24.36%
BWMX
Betterware de Mexico
8.84
-4.48
-33.63%
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.
The most recent analyst rating on (PRTS) stock is a Buy with a $2.00 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.