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CarParts.com Inc (PRTS)
NASDAQ:PRTS
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US Auto Parts Network
(NASDAQ:PRTS)
Rating:45Neutral
Price Target:
$1.00
▲(29.87% 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.
US Auto Parts Network (PRTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$53.75M
Dividend YieldN/A
Average Volume (3M)382.15K
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-8.87%
EPS Growth-125.02%
CountryUS
Employees1,466
SectorConsumer Cyclical
Sector Strength71
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.23
Shares Outstanding58,963,300
10 Day Avg. Volume521,379
30 Day Avg. Volume382,150
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 Cap1.28
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit0.36
Enterprise Value/Ebitda-1.65
Forecast
1Y Price Target
$0.85Price Target Upside10.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
US Auto Parts Network 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.
US Auto Parts Network Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: -16.30%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in mobile app engagement and positive EBITDA results, alongside ongoing strategic exploration for shareholder value. However, these are countered by challenges in gross margin decline, increased net loss, and pressures in the marketplace segment.Q2-2025 Updates
Positive Updates
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.
Positive Adjusted EBITDA in June
Achieved positive adjusted EBITDA in June, underscoring that strategic efforts are beginning to deliver tangible results.
Revenue Growth
Reported revenue of $151.9 million, up 5% from $144.3 million last year, driven by increases in the e-commerce and offline channels.
Cost Savings Initiatives
Streamlined corporate headcount and operations, expecting to generate approximately $10 million in annualized cost savings.
Strategic Alternatives Exploration
Exploration of strategic alternatives to maximize shareholder value is nearing completion, with potential transactions being evaluated.
Negative Updates
Gross Margin Decline
Gross margin decreased to 32.8% from 33.5% in the prior year period, primarily due to product mix and the impact of tariffs.
Increased Net Loss
GAAP net loss for the quarter was $12.7 million compared to a loss of $8.7 million in the prior year, attributed to lower gross margin and higher marketing costs.
Marketplace Segment Pressure
Marketplaces segment under pressure due to noncompliant products from China and tariffs impacting consumer demand in discretionary categories.
Closure of Virginia Facility
Due to excess capacity and operational improvements, the Virginia facility will close, aligning operational costs with volume.
Company Guidance
During the CarParts.com second quarter of 2025 conference call, several key financial metrics and strategic initiatives were discussed. The company reported a revenue of $151.9 million, marking a 5% increase from the previous year's $144.3 million, driven by growth in the e-commerce and offline channels despite softness in the marketplace channel. Gross profit rose to $49.8 million, although the gross margin slightly decreased to 32.8% from 33.5% due to product mix and tariff impacts. The GAAP net loss widened to $12.7 million, mainly due to lower gross margins and higher marketing costs. Adjusted EBITDA showed a loss of $3.1 million, down from a slight gain the previous year. The call highlighted strategic efforts including the achievement of positive adjusted EBITDA in June, record levels of mobile app engagement, and a focus on mitigating tariff impacts through supply chain optimizations and dynamic pricing. Additionally, the company is implementing cost-saving measures expected to save $10 million annually, such as closing the Virginia facility and leveraging AI for operational efficiencies.US Auto Parts Network Financial Statement Overview
Summary
CarParts.com Inc shows mixed financial health with challenges in revenue growth and profitability. The balance sheet is stable but impacted by ongoing losses, and cash flow management needs improvement.Income Statement
CarParts.com Inc has shown volatility in its revenue and profitability over the years. The TTM data indicates a declining revenue trend with a Gross Profit Margin of approximately 32.6% and a negative Net Profit Margin of -8.7%, reflecting challenges in cost management and profitability. Historical data shows fluctuating EBIT and EBITDA margins, indicating inconsistent operational efficiency.52
Neutral
Balance Sheet
The company's balance sheet reveals a moderate Debt-to-Equity Ratio of 0.54, suggesting a balanced use of debt relative to equity. However, the Equity Ratio of 33.6% in the TTM period shows reduced equity backing. The Return on Equity remains negative due to persistent net losses, highlighting the need for improved profitability to enhance shareholder returns.60
Neutral
Cash Flow
CarParts.com Inc's cash flow statement depicts challenges in generating positive free cash flow consistently, with a notable negative Free Cash Flow in the TTM period. The Operating Cash Flow to Net Income Ratio is positive, indicating some ability to convert earnings to cash, but the Free Cash Flow to Net Income Ratio is negative, suggesting difficulty in funding operations and investments from cash flow.58
Neutral
| 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 |
US Auto Parts Network Technical Analysis
Negative
0.77
Price Trends
0.82
Negative
0.85
Negative
0.94
Negative
Market Momentum
0.01
Positive
42.55
Neutral
54.41
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 0.77 is below the 20-day moving average (MA) of 0.84, below the 50-day MA of 0.82, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 54.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRTS.
US Auto Parts Network Risk Analysis
US Auto Parts Network disclosed 52 risk factors in its most recent earnings report. US Auto Parts Network 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
US Auto Parts Network Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $66.93B | 27.08 | -14.95% | ― | 5.15% | 1.99% | |
72 Outperform | $18.74B | 23.21 | 17.50% | 2.94% | 2.65% | -32.91% | |
70 Outperform | $86.45B | 36.71 | -174.09% | ― | 5.15% | 5.33% | |
69 Neutral | $490.71M | 16.73 | 39.74% | 9.21% | -8.56% | -57.78% | |
56 Neutral | HK$25.48B | 5.05 | -2.69% | 5.69% | -0.45% | -52.99% | |
46 Neutral | $3.54B | 59.62 | -23.77% | 1.62% | -16.55% | -941.57% | |
45 Neutral | $53.75M | ― | -64.24% | ― | -8.87% | -125.02% |
* Consumer Cyclical Sector Average
Performance Comparison
PRTS
US Auto Parts Network
0.77
0.02
2.67%
AAP
Advance Auto Parts
61.81
2.76
4.67%
AZO
AutoZone
4,036.43
840.01
26.28%
GPC
Genuine Parts Company
138.05
5.15
3.88%
ORLY
O'Reilly Auto
102.64
27.36
36.34%
BWMX
Betterware de Mexico
13.22
0.10
0.76%
US Auto Parts Network 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.