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Standard Motor Products (SMP)
:SMP
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Standard Motor Products
(NYSE:SMP)
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Rating:65Neutral
Price Target:
$40.00
▲(4.58% Upside)
Standard Motor Products' overall score reflects a strong earnings call performance and stable financials, offset by bearish technical indicators and a relatively high valuation. The company's growth prospects are promising, driven by acquisitions and strategic initiatives, but technical analysis suggests caution in the short term.
Standard Motor Products (SMP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$824.09M
Dividend Yield3.29%
Average Volume (3M)136.74K
Price to Earnings (P/E)12.2
Beta (1Y)0.83
Revenue Growth23.96%
EPS Growth11.01%
CountryUS
Employees5,600
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.36
Shares Outstanding21,999,190
10 Day Avg. Volume174,212
30 Day Avg. Volume136,744
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)1.10
Price to Sales (P/S)0.46
P/FCF Ratio20.67
Enterprise Value/Market Cap1.89
Enterprise Value/Revenue0.89
Enterprise Value/Gross Profit2.99
Enterprise Value/Ebitda9.35
Forecast
1Y Price Target
$49.00Price Target Upside28.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.93
Revenue Forecast (FY)$1.81B
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:Oct 31, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant revenue growth driven by acquisitions and market share gains. However, challenges such as declines in specific segments and higher operating expenses were noted. The company's positive outlook and successful integration of Nissens suggest continued growth momentum.Q3-2025 Updates
Positive Updates
Strong Revenue Growth
Overall growth of nearly 25% with legacy business up nearly 4% and significant contribution from the newly acquired Nissens business.
Temperature Control Segment Growth
Temperature Control sales increased by nearly 15% over last year, driven by strong demand and market share gains.
Nissens Business Performance
Nissens contributed nearly $85 million in revenue and achieved a mid-teens EBITDA percentage, reflecting strong market performance and favorable currency translation.
Adjusted EBITDA Improvement
Adjusted EBITDA increased to 12.4% of net sales, with non-GAAP diluted earnings per share up 6.3% in Q3.
Positive Cash Flow and Debt Reduction
Cash generated from operations for the first 9 months was up $7.5 million, with a repayment of $47 million on the credit agreement.
Negative Updates
Decline in Vehicle Control Sales
Net sales in the Vehicle Control segment were down 1.6%, driven by a secular decline in wire products.
Engineered Solutions Sales Decline
Sales for the Engineered Solutions segment were down 0.3%, with adjusted EBITDA affected by lower sales volume and tariff costs.
Higher Operating Expenses
Increased operating expenses due to transition to a new warehouse and higher distribution expenses.
Company Guidance
During the Standard Motor Products Third Quarter 2025 Earnings Call, the company provided updated guidance for the fiscal year 2025, reflecting strong performance and strategic integration of recent acquisitions. The company reported a 24.9% increase in consolidated sales for the quarter, with adjusted EBITDA reaching 12.4% of net sales. The legacy business experienced a near 4% growth, while the acquisition of Nissens Automotive contributed an additional $85 million in revenue, achieving a 16.8% EBITDA margin. Despite a 1.6% sales decline in the Vehicle Control segment due to a challenging comparison, the Temperature Control segment saw a robust 14.8% sales increase. The company also raised its full-year sales guidance to a low to mid-20% range and tightened its adjusted EBITDA margin expectation to 10.5% to 11%, citing strong customer demand and strategic cost management, including effective tariff offsetting. Cash generated from operations for the first nine months was $85.7 million, and the company aims to reduce its leverage ratio to 2x adjusted EBITDA by the end of 2026.Standard Motor Products Financial Statement Overview
Summary
Standard Motor Products demonstrates stable financial performance with consistent revenue growth and profitability. The balance sheet reflects a balanced leverage strategy, though slightly elevated debt levels warrant attention. Cash flow metrics indicate positive growth but highlight the need for improved cash conversion efficiency.Income Statement
Standard Motor Products shows a solid revenue growth rate of 6.04% in the TTM, indicating positive sales momentum. The gross profit margin of 30.78% and net profit margin of 3.75% suggest stable profitability, although the net margin is relatively low. The EBIT margin of 4.40% and EBITDA margin of 8.16% are moderate, reflecting operational efficiency but with room for improvement.75
Positive
Balance Sheet
The company's debt-to-equity ratio of 0.97 in the TTM indicates a balanced approach to leveraging, though slightly higher than previous years. The return on equity of 10.02% is decent, showing effective use of equity to generate profits. The equity ratio of 33.41% suggests a moderate level of financial stability.70
Positive
Cash Flow
Free cash flow growth of 10.85% in the TTM is a positive sign, indicating improved cash generation. However, the operating cash flow to net income ratio of 0.15 and free cash flow to net income ratio of 0.53 suggest that cash flow generation relative to net income could be stronger.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.75B | 1.46B | 1.36B | 1.37B | 1.30B | 1.13B |
| Gross Profit | 521.09M | 413.32M | 379.53M | 373.24M | 367.93M | 328.15M |
| EBITDA | 166.46M | 116.39M | 121.65M | 137.25M | 159.74M | 136.03M |
| Net Income | 69.05M | 53.63M | 63.14M | 73.04M | 90.89M | 57.39M |
Balance Sheet | ||||||
| Total Assets | 2.03B | 1.81B | 1.29B | 1.25B | 1.20B | 956.54M |
| Cash, Cash Equivalents and Short-Term Investments | 87.20M | 44.43M | 32.53M | 21.15M | 21.75M | 19.49M |
| Total Debt | 707.26M | 660.53M | 245.19M | 280.33M | 159.64M | 32.68M |
| Total Liabilities | 1.34B | 1.18B | 642.17M | 633.89M | 585.33M | 406.30M |
| Stockholders Equity | 677.41M | 615.75M | 635.06M | 610.02M | 601.58M | 550.24M |
Cash Flow | ||||||
| Free Cash Flow | 44.96M | 32.67M | 115.63M | -53.49M | 59.69M | 80.08M |
| Operating Cash Flow | 84.17M | 76.69M | 144.26M | -27.53M | 85.56M | 97.90M |
| Investing Cash Flow | -410.86M | -418.68M | -25.70M | -27.82M | -151.25M | -17.80M |
| Financing Cash Flow | 376.85M | 349.55M | -109.61M | 55.50M | 69.01M | -71.52M |
Standard Motor Products Technical Analysis
Neutral
38.25
Price Trends
39.68
Negative
36.81
Positive
32.16
Positive
Market Momentum
-0.50
Positive
44.92
Neutral
39.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMP, the sentiment is Neutral. The current price of 38.25 is below the 20-day moving average (MA) of 39.20, below the 50-day MA of 39.68, and above the 200-day MA of 32.16, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 39.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.02B | 16.10 | 18.19% | ― | 7.94% | 34.84% | |
75 Outperform | $5.62B | 13.27 | 8.96% | 2.84% | -1.90% | -13.86% | |
71 Outperform | $2.90B | 9.55 | 23.16% | 0.25% | -4.03% | -39.51% | |
71 Outperform | $3.40B | 11.10 | ― | 1.21% | -1.09% | 56.16% | |
65 Neutral | $824.09M | 12.19 | 10.49% | 3.29% | 23.96% | 11.01% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $2.51B | 48.64 | -4.82% | 1.87% | -18.23% | ― |
* Consumer Cyclical Sector Average
SMP
Standard Motor Products
38.25
4.54
13.47%
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Standard Motor Products Corporate Events
Standard Motor Products Reports Strong Q2 2025 Results
Aug 6, 2025
Standard Motor Products, Inc. is a prominent manufacturer and distributor in the automotive parts industry, known for its extensive range of vehicle control, temperature control, and engineered solutions products.
Standard Motor Products Reports Strong Earnings Call
Aug 6, 2025
The recent earnings call for Standard Motor Products painted a predominantly positive picture, highlighting strong top-line growth, increased profitability, and the successful integration of the Nissens acquisition. Despite facing challenges such as tariffs and a decline in the Engineered Solutions segment, the company remains optimistic that its strategic initiatives and operational efficiencies will help mitigate these issues.
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.