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Standard Motor Products (SMP)
NYSE:SMP
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Standard Motor Products
(NYSE:SMP)
Rating:74Outperform
Price Target:
$42.00
▲(7.22% Upside)
Standard Motor Products (SMP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$849.60M
Dividend Yield3.12%
Average Volume (3M)192.72K
Price to Earnings (P/E)13.1
Beta (1Y)0.84
Revenue Growth17.98%
EPS Growth9.41%
CountryUS
Employees5,600
SectorConsumer Cyclical
Sector Strength75
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.29
Shares Outstanding21,987,673
10 Day Avg. Volume313,035
30 Day Avg. Volume192,719
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 Cap1.65
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit2.82
Enterprise Value/Ebitda9.94
Forecast
1Y Price Target
$43.00Price Target Upside9.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Standard Motor Products Business Overview & Revenue Model
Company DescriptionStandard Motor Products (SMP) is a leading manufacturer and distributor of automotive replacement parts in North America. The company operates primarily in the automotive aftermarket sector, providing a comprehensive range of products including ignition, fuel, and emission parts, as well as engine management components and transmission parts. With a focus on quality and innovation, SMP serves a diverse customer base that includes major automotive retailers, warehouse distributors, and repair shops.
How the Company Makes MoneySMP generates revenue through the sale of automotive replacement parts and related products. The company's primary revenue streams include wholesale distribution to automotive retailers and warehouse distributors, as well as direct sales to repair shops. SMP's extensive product catalog allows it to cater to a wide variety of vehicle makes and models, which helps to capture a broad customer market. Additionally, SMP benefits from strategic partnerships with key automotive manufacturers and suppliers, enhancing its product offerings and market reach. The company also invests in research and development to create innovative solutions that meet the evolving needs of the automotive industry, further driving sales and profitability.
Standard Motor Products Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: 24.03%|
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Positive
The earnings call presented a mostly positive outlook with strong top-line growth, increased profitability, and successful integration of the Nissens acquisition. While there are challenges with tariffs and a decline in the Engineered Solutions segment, the company's strategic initiatives and operational efficiencies are expected to mitigate these issues.Q2-2025 Updates
Positive Updates
Strong Top Line Growth
The company posted growth of nearly 27% with the legacy business up 3.5% despite challenging comps. Year-to-date growth is about 26%, or 4% excluding the Nissens acquisition.
Increased EBITDA and Profitability
Adjusted EBITDA increased by $20 million, up 190 basis points to 12% of net sales, with contributions from various segments, including Nissens.
Nissens Acquisition Success
Nissens added $90 million in revenue and is exceeding expectations, showing mid- to high-single-digit growth and an 18% EBITDA margin.
North American Aftermarket Strength
Vehicle Control sales were up nearly 7% in the quarter, and Temperature Control sales increased 5.5% over last year.
New Distribution Center
The official opening of a new 575,000 square foot distribution center in Shawnee, Kansas, will enhance capacity and efficiency.
Negative Updates
Engineered Solutions Decline
Sales in the Engineered Solutions segment declined 8.3%, reflecting a slowdown in certain end markets.
Tariff Costs Impact
Incurred costs in Q2 due to tariffs with minimal offsetting pricing; however, these are expected to roughly offset starting in Q3.
Company Guidance
During the Standard Motor Products Second Quarter 2025 Earnings Call, the company provided updated guidance based on their strong performance in the first half of the year. They reported a 26.7% increase in consolidated sales for the quarter, with adjusted EBITDA rising 190 basis points to 12% of net sales. The Vehicle Control segment saw a 6.9% increase in net sales to $201.7 million, while the Temperature Control segment experienced a 5.5% sales increase to $131.4 million. The recently acquired Nissens Automotive contributed $90.5 million in net sales and achieved an 18% adjusted EBITDA margin. Despite an 8.3% decline in the Engineered Solutions segment, the company raised its full-year sales growth expectations to the low 20% range, previously forecasted at mid-teens growth. They also affirmed their adjusted EBITDA margin guidance of 10% to 11%, considering the ongoing impact of tariffs and cost pass-throughs. Cash flow from operations for the first half was improved, showing a cash usage of $5.9 million compared to $10.1 million last year, despite increased tariff costs. The company emphasized their ability to navigate the evolving tariff landscape and maintain competitive advantages through operational efficiencies and strategic pricing.Standard Motor Products Financial Statement Overview
Summary
Standard Motor Products demonstrates strong revenue growth and efficient cost management, but profitability remains an area for improvement. The balance sheet reflects a balanced capital structure with moderate leverage. Cash flow generation has improved, but further enhancement in converting income to cash flow is needed. Overall, the company is on a stable financial trajectory with opportunities for enhancing profitability and cash flow efficiency.Income Statement
Standard Motor Products shows a solid revenue growth rate of 6.73% TTM, indicating strong sales performance. The gross profit margin is healthy at 30.18%, reflecting efficient cost management. However, the net profit margin is relatively low at 2.39%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, indicating stable operational efficiency.75
Positive
Balance Sheet
The company's debt-to-equity ratio is 1.08, indicating a balanced use of debt and equity, though slightly higher than previous years. The return on equity is modest at 6.11%, suggesting moderate profitability for shareholders. The equity ratio of 34.32% shows a reasonable level of financial stability.70
Positive
Cash Flow
Free cash flow has grown significantly by 112.06% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.16, suggesting that cash flow generation is not as strong as net income. The free cash flow to net income ratio is 0.50, showing moderate efficiency in converting net income into free cash flow.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.65B | 1.46B | 1.36B | 1.37B | 1.30B | 1.13B |
| Gross Profit | 497.96M | 423.32M | 388.83M | 382.54M | 376.93M | 336.65M |
| EBITDA | 141.10M | 118.91M | 121.65M | 137.25M | 159.74M | 136.03M |
| Net Income | 39.42M | 27.50M | 34.15M | 55.35M | 90.89M | 80.42M |
Balance Sheet | ||||||
| Total Assets | 2.01B | 1.81B | 1.29B | 1.25B | 1.20B | 956.54M |
| Cash, Cash Equivalents and Short-Term Investments | 58.79M | 44.43M | 32.53M | 21.15M | 21.75M | 19.49M |
| Total Debt | 746.40M | 680.52M | 245.19M | 280.33M | 159.64M | 32.68M |
| Total Liabilities | 1.30B | 1.18B | 642.17M | 633.89M | 585.33M | 406.30M |
| Stockholders Equity | 688.62M | 615.75M | 635.06M | 610.02M | 601.58M | 550.24M |
Cash Flow | ||||||
| Free Cash Flow | 40.56M | 32.67M | 115.63M | -53.49M | 59.69M | 80.08M |
| Operating Cash Flow | 80.93M | 76.69M | 144.26M | -27.53M | 85.56M | 97.90M |
| Investing Cash Flow | -412.08M | -418.68M | -25.70M | -27.82M | -151.25M | -17.80M |
| Financing Cash Flow | 353.70M | 349.55M | -109.61M | 55.50M | 69.01M | -71.52M |
Standard Motor Products Technical Analysis
Positive
39.17
Price Trends
32.51
Positive
29.38
Positive
29.94
Positive
Market Momentum
1.88
Negative
71.46
Negative
95.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMP, the sentiment is Positive. The current price of 39.17 is above the 20-day moving average (MA) of 34.19, above the 50-day MA of 32.51, and above the 200-day MA of 29.94, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 71.46 is Negative, neither overbought nor oversold. The STOCH value of 95.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMP.
Standard Motor Products Risk Analysis
Standard Motor Products disclosed 24 risk factors in its most recent earnings report. Standard Motor Products 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
Standard Motor Products Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $736.85M | 11.58 | 25.41% | 3.69% | 1.47% | 131.61% | |
74 Outperform | $849.60M | 13.10 | 9.90% | 3.12% | 17.98% | 9.41% | |
68 Neutral | $280.99M | 185.73 | 0.63% | ― | 6.59% | ― | |
64 Neutral | $482.39M | 11.50 | 10.64% | 1.79% | -24.48% | -40.73% | |
63 Neutral | £1.73B | 10.49 | 4.37% | 3.49% | 0.66% | -39.52% | |
54 Neutral | $476.96M | 21.62 | -3.03% | 6.85% | -3.20% | -163.24% | |
44 Neutral | $2.52M | ― | -80.07% | ― | -8.31% | -56.03% |
* Consumer Cyclical Sector Average
Performance Comparison
SMP
Standard Motor Products
39.17
9.75
33.14%
PLOW
Douglas Dynamics
31.98
5.82
22.25%
MLR
Miller Industries
42.90
-13.53
-23.98%
MNRO
Monro Muffler
15.91
-9.53
-37.46%
MPAA
Motorcar Parts Of America
14.20
7.95
127.20%
SSUP
Superior Industries International
0.08
-3.32
-97.65%
Standard Motor Products Corporate Events
Executive/Board ChangesShareholder Meetings
Standard Motor Products Approves 2025 Incentive Plan
Neutral
May 15, 2025
On May 15, 2025, Standard Motor Products, Inc. held its Annual Meeting of Shareholders, where the 2025 Omnibus Incentive Plan was approved. This plan, effective immediately, allows for various stock and cash-based awards, with a maximum of 1,050,000 shares available for issuance. Additionally, the shareholders elected eight directors, ratified KPMG LLP as the independent auditor for the fiscal year ending December 31, 2025, and approved a non-binding resolution on executive compensation.
The most recent analyst rating on (SMP) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Standard Motor Products stock, see the SMP 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.