Standard Motor Products (SMP)
NYSE:SMP
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Standard Motor Products
(NYSE:SMP)
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Rating:59Neutral
Price Target:
$39.00
▲(2.98% Upside)
Action:ReiteratedDate:04/30/26
The score is held back primarily by higher leverage and uneven cash conversion despite improving profitability, alongside weak price trend signals. These are partially offset by an attractive valuation (low P/E and solid yield) and a generally constructive earnings outlook with synergy progress, though tariffs, inventory-driven cash flow pressure, and control remediation add risk.
Positive Factors
Diversified aftermarket portfolio & channels
A broad SKU portfolio across engine management, HVAC, sensors and under-hood parts sold via multiple channels reduces single-customer and product-cycle risk. Durable aftermarket demand and multi-channel distribution support steady revenue streams and cross-selling over time.
Negative Factors
Elevated leverage and interest burden
materially higher leverage (net debt and elevated debt-to-equity) compresses financial flexibility and raises refinancing and covenant risk. With interest expense expected around $30M, any margin softness or cyclical sales dips would constrain deleveraging and capital allocation choices.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified aftermarket portfolio & channels
A broad SKU portfolio across engine management, HVAC, sensors and under-hood parts sold via multiple channels reduces single-customer and product-cycle risk. Durable aftermarket demand and multi-channel distribution support steady revenue streams and cross-selling over time.
Read all positive factors
Standard Motor Products (SMP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$852.84M
Dividend Yield3.32%
Average Volume (3M)126.23K
Price to Earnings (P/E)11.2
Beta (1Y)0.81
Revenue Growth18.32%
EPS Growth45.19%
CountryUS
Employees5,600
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)2.08
Shares Outstanding22,145,939
10 Day Avg. Volume100,657
30 Day Avg. Volume126,233
Financial Highlights & Ratios
PEG Ratio-0.83
Price to Book (P/B)1.19
Price to Sales (P/S)0.45
P/FCF Ratio43.29
Enterprise Value/Market Cap1.78
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit2.71
Enterprise Value/Ebitda6.62
Forecast
1Y Price Target
$54.00Price Target Upside42.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.43
Revenue Forecast (FY)$1.86B
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 part...
How the Company Makes Money
SMP primarily makes money by selling automotive replacement parts (aftermarket) through a multi-channel distribution model. Revenue is generated from the manufacture and sourcing of parts (including electronics- and sensor-heavy components) that a...
Standard Motor Products Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive picture: robust top-line growth (22.4% full year), margin expansion, EPS growth, successful initial integration of the Nissens acquisition (meaningful revenue and healthy EBITDA margins), and operational initiatives that are expected to drive synergies. However, there are notable challenges — a material weakness identified at Nissens (IT controls) with remediation underway, a significant decline in the wire sets subcategory, tariff-driven margin compression despite pass-through pricing, reduced operating cash flow due to inventory build, and elevated leverage (2.7x) that management plans to reduce. Management provided a constructive outlook for 2026 (low- to mid-single-digit sales growth; 11%–12% adjusted EBITDA margin) while warning of Q1 comparability and tariff uncertainties. Overall, highlights and positive trends outweigh the disclosed challenges.Positive Updates
Strong Top-Line Growth
Consolidated net sales increased 12.2% in Q4 and 22.4% for full year 2025 versus prior year. Excluding the Nissens acquisition, sales were up about 4% for both the quarter and the year.
Negative Updates
Material Weakness in Nissens Controls
During the first full year of ownership, the company identified a material weakness in internal controls at Nissens related to general IT controls. Management is remediating the issue; the company disclosed the weakness in the 10-K but received a clean audit opinion from KPMG.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Consolidated net sales increased 12.2% in Q4 and 22.4% for full year 2025 versus prior year. Excluding the Nissens acquisition, sales were up about 4% for both the quarter and the year.
Read all positive updates
Company Guidance
For fiscal 2026 management guided to sales growth in the low- to mid-single-digit percentage range, an adjusted EBITDA margin of 11%–12% of net sales, total operating expenses (including factoring) of roughly $106M–$114M per quarter, interest expense of about $30M for the year, and depreciation & amortization of $45M–$50M; they excluded potential U.S. tariff changes from the outlook and intend to pass tariff costs dollar-for-dollar, expect seasonal variability with a tough Q1 comp for Temp Control (preseason spans Q1–Q2), aim to reduce leverage from the 2.7x quarter-end level toward a 2.0x target by 2026, and continue pursuing $8M–$12M of run‑rate synergies from the Nissens integration.Standard Motor Products Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
54
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.83B | 1.79B | 1.46B | 1.36B | 1.37B | 1.30B |
| Gross Profit | 559.86M | 541.01M | 413.32M | 379.53M | 373.24M | 367.93M |
| EBITDA | 229.00M | 227.90M | 116.39M | 121.65M | 137.25M | 159.74M |
| Net Income | 45.91M | 41.34M | 53.63M | 63.14M | 73.04M | 90.89M |
Balance Sheet | ||||||
| Total Assets | 2.05B | 2.00B | 1.81B | 1.29B | 1.25B | 1.20B |
| Cash, Cash Equivalents and Short-Term Investments | 59.21M | 72.03M | 44.43M | 32.53M | 21.15M | 21.75M |
| Total Debt | 748.97M | 682.10M | 660.53M | 245.19M | 280.33M | 159.64M |
| Total Liabilities | 1.34B | 1.30B | 1.18B | 642.17M | 633.89M | 585.33M |
| Stockholders Equity | 693.33M | 683.70M | 615.75M | 635.06M | 610.02M | 601.58M |
Cash Flow | ||||||
| Free Cash Flow | 39.40M | 18.72M | 32.67M | 115.63M | -53.49M | 59.69M |
| Operating Cash Flow | 75.73M | 57.44M | 76.69M | 144.26M | -27.53M | 85.56M |
| Investing Cash Flow | -36.16M | -35.66M | -418.68M | -25.70M | -27.82M | -151.25M |
| Financing Cash Flow | -36.93M | -269.00K | 349.55M | -109.61M | 55.50M | 69.01M |
Standard Motor Products Technical Analysis
Positive
37.87
Price Trends
38.76
Negative
38.48
Negative
37.68
Positive
Market Momentum
-0.08
Negative
55.99
Neutral
63.15
Neutral
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 37.87 is above the 20-day moving average (MA) of 36.30, below the 50-day MA of 38.76, and above the 200-day MA of 37.68, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 55.99 is Neutral, neither overbought nor oversold. The STOCH value of 63.15 is Neutral, 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 25 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.96B | 19.91 | 11.08% | 0.57% | -2.04% | -43.19% | |
71 Outperform | $6.70B | 8.78 | 8.79% | 2.63% | 2.86% | 17.30% | |
68 Neutral | $4.87B | 9.05 | -39.65% | 1.49% | 7.36% | 34.94% | |
65 Neutral | $3.41B | 81.93 | 14.34% | ― | 6.03% | 8.26% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $852.84M | 11.23 | 11.76% | 3.32% | 18.32% | 45.19% | |
56 Neutral | $3.93B | 38.91 | -2.91% | 1.70% | -21.52% | ― |
* Consumer Cyclical Sector Average
SMP
Standard Motor Products
37.34
10.18
37.48%
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DORM
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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.