Standard Motor Products (SMP) AI Stock Analysis

• Market Cap: $731.97M
• Dividend Yield: 3.72%
• Average Volume (3M): 153.87K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.68
• Revenue Growth: 13.53%
• EPS Growth: -4.76%
• Country: US
• Employees: 5,600
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Auto - Parts
• EPS (TTM): 0.81
• Shares Outstanding: 21,981,024
• 10 Day Avg. Volume: 199,489
• 30 Day Avg. Volume: 153,874
• PEG Ratio: -0.77
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.11
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 2.22
• Enterprise Value/Ebitda: 1.74
• 1Y Price Target: $42.00
• Price Target Upside: 26.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: $35.00 ▲(5.11%Upside)

Standard Motor Products scores highly on technical analysis and earnings call performance, with strong upward momentum and a positive earnings outlook. The valuation is attractive, providing a solid base for investment. Financial performance is stable but has areas for improvement in profitability and cash flow conversion.

Standard Motor Products Business Overview & Revenue Model

Company Description

Standard Motor Products, Inc. manufactures and distributes replacement parts that are used in the maintenance, repair, and service of vehicles in the automotive aftermarket industry with a complementary focus on specialized original equipment parts for manufacturers across agriculture, heavy duty, and construction equipment industries. The company's Engine Management segment provides electronic ignition control modules, camshaft and crankshaft position sensors, ignition wires and coils, switches and relays, exhaust gas recirculation valves, pressure and temperature sensors, variable valve timing components, mass airflow and fuel pressure sensors, electronic throttle bodies, and diesel injectors and pumps; and anti-lock brake, vehicle speed, tire pressure monitoring, and park assist sensors. This segment offers its products under the Standard, Blue Streak, BWD, Intermotor, OEM, SMP Blue Streak Canada, GP Sorensen, Locksmart, Standard Motorcycle, and Blue Streak Race Wires brands. Its Temperature Control segment provides components for the temperature control systems, engine cooling systems, power window accessories, and windshield washer systems of motor vehicles under the Four Seasons, ACI, Hayden, Factory Air, and Maxair brands. Its products include air conditioning compressors and repair kits, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, actuators, hose assemblies, thermal expansion devices, heater valves, heater cores, A/C service tools and chemicals, fan assemblies, fan clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps. The company serves primarily automotive aftermarket retailers, warehouse distributors, original equipment manufacturers, and original equipment service part operations in the United States, Canada, Europe, Asia, Mexico, and other Latin American countries. The company was founded in 1919 and is headquartered in Long Island City, New York.

How the Company Makes Money

Standard Motor Products generates revenue through the manufacturing and distribution of automotive replacement parts. The company's primary revenue streams are derived from its two main business segments. The Engine Management segment includes products such as ignition coils, sensors, and fuel system components, while the Temperature Control segment comprises air conditioning system parts and other related products. SMP sells these components to a variety of customers, including retail automotive chains, warehouse distributors, and original equipment manufacturers. Additionally, strategic partnerships and long-term contracts with major automotive suppliers contribute significantly to SMP's earnings. The company's extensive distribution network and strong brand reputation further bolster its ability to generate consistent revenue.

Standard Motor Products Financial Statement Overview

Summary

Standard Motor Products exhibits solid revenue growth and stable operational performance, supported by efficient cost management. However, there is room for improvement in net profitability and free cash flow conversion. The balance sheet is moderately leveraged, providing some room for financial maneuvering.

Income Statement

Standard Motor Products has demonstrated robust revenue growth over the past years, with a positive trend continuing into the TTM. Gross profit margin stands at 29.52%, reflecting efficient cost management. The company shows a net profit margin of 2.02%, and a solid EBIT margin of 6.89%. There is room for improvement in net profitability, but the consistent EBITDA margin of 8.65% indicates stable operational performance.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio of 1.17, suggesting a balanced leverage approach. Return on Equity (ROE) at 4.90% is modest, pointing to potential areas for enhancing shareholder value. The equity ratio of 33.12% indicates a healthy capitalization structure, although there is potential to increase equity to further solidify financial stability.

Cash Flow

Free cash flow growth has been inconsistent, but the recent TTM shows positive free cash flow. The operating cash flow to net income ratio is 1.99, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio at 0.61 suggests room for improvement in translating earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.55B	1.46B	1.36B	1.37B	1.30B	1.13B
Gross Profit	456.32M	423.32M	388.83M	382.54M	376.93M	336.65M
EBITDA	133.73M	116.39M	121.65M	137.25M	159.74M	136.03M
Net Income	31.24M	27.50M	34.15M	55.35M	90.89M	80.42M
Balance Sheet
Total Assets	1.93B	1.81B	1.29B	1.25B	1.20B	956.54M
Cash, Cash Equivalents and Short-Term Investments	50.28M	44.43M	32.53M	21.15M	21.75M	19.49M
Total Debt	750.44M	649.73M	245.19M	280.33M	159.64M	32.68M
Total Liabilities	1.27B	1.18B	642.17M	633.89M	585.33M	406.30M
Stockholders Equity	637.96M	615.75M	635.06M	610.02M	601.58M	550.24M
Cash Flow
Free Cash Flow	19.13M	32.67M	115.63M	-53.49M	59.69M	80.08M
Operating Cash Flow	62.19M	76.69M	144.26M	-27.53M	85.56M	97.90M
Investing Cash Flow	-414.82M	-418.68M	-25.70M	-27.82M	-151.25M	-17.80M
Financing Cash Flow	371.68M	349.55M	-109.61M	55.50M	69.01M	-71.52M

Standard Motor Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 33.3 is above the 20-day moving average (MA) of 30.57, above the 50-day MA of 29.00, and above the 200-day MA of 29.52, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 70.65 is Negative, neither overbought nor oversold. The STOCH value of 85.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMP.

Standard Motor Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMP	80 Outperform	$731.97M	12.87	9.00%	3.72%	13.53%	-4.76%
PLOW	79 Outperform	$727.62M	11.62	26.52%	3.82%	1.14%	127.04%
MLR	74 Outperform	$533.54M	9.89	14.19%	1.72%	-7.18%	-17.48%
MPAA	65 Neutral	$240.23M	―	-7.17%	―	5.53%	60.54%
Sector *	62 Neutral	$16.76B	11.38	-7.38%	2.96%	1.59%	-23.30%
MNRO	57 Neutral	$498.69M	21.62	-0.81%	6.73%	-6.38%	-118.57%
SSUP	41 Neutral	$4.58M	―	-80.07%	―	-3.63%	36.19%

Standard Motor Products Corporate Events

Standard Motor Products Approves 2025 Incentive Plan

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.