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Standard Motor Products
(NYSE:SMP)
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Rating:70Outperform
Price Target:
$45.00
▲(16.37% Upside)
Action:Upgraded
Date:08/05/26
Overall score reflects improving operating performance and cash generation (plus a positive, guidance-reaffirming earnings call) alongside constructive technical momentum. The main offsets are elevated leverage and thin net margins, with additional caution from cost/macro and tariff-related uncertainties highlighted on the call.
Positive Factors
Revenue growth acceleration
SMP's accelerated TTM revenue growth (42.4%) reflects durable demand recovery and improved market penetration in aftermarket and specialty OE programs. Sustained top-line momentum supports operating leverage, funds reinvestment and reduces reliance on one-time items, strengthening multi-quarter growth visibility.
Negative Factors
Elevated leverage
Debt near parity with equity and historical step-up in leverage reduces balance-sheet flexibility and increases sensitivity to earnings swings. Even with a path to ~2.0x EBITDA, elevated leverage constrains strategic optionality and raises refinancing and interest-rate risk over the next several quarters.
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Positive Factors
Negative Factors
Revenue growth acceleration
SMP's accelerated TTM revenue growth (42.4%) reflects durable demand recovery and improved market penetration in aftermarket and specialty OE programs. Sustained top-line momentum supports operating leverage, funds reinvestment and reduces reliance on one-time items, strengthening multi-quarter growth visibility.
Read all positive factors
Standard Motor Products (SMP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$851.13M
Dividend Yield3.35%
Average Volume (3M)142.72K
Price to Earnings (P/E)18.4
Beta (1Y)0.85
Revenue Growth18.32%
EPS Growth45.19%
CountryUS
Employees5,700
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)2.29
Shares Outstanding22,263,279
10 Day Avg. Volume112,711
30 Day Avg. Volume142,716
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$54.00Price Target Upside39.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.4
Revenue Forecast (FY)$1.88B
Standard Motor Products Business Overview & Revenue Model
Company Description
Standard Motor Products, Inc. (SMP) specializes in the production and distribution of replacement automotive components for the aftermarket, facilitating vehicle maintenance, repair, and service. Complementing this, the company also engineers besp...
How the Company Makes Money
SMP generates revenue primarily by selling automotive replacement parts into the automotive aftermarket. Its key revenue streams come from (1) Engine Management products (e.g., sensors, ignition and emission-related components, electrical and fuel...
Standard Motor Products Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone driven by solid top-line growth, a record adjusted EBITDA quarter, improved cash flow and deleveraging, strong performance in Temperature Control, Engineered Solutions sales momentum, and profitable European (Nissens) contributions and synergies. Offsetting items include a modest decline in Vehicle Control due to secular wire-set weakness, margin compression from elevated distribution costs and inflation, some segment margin pressures, and macro/tariff uncertainty that could affect the back half. On balance, the positives (growth, record profitability, cash generation, strategic JV and balance-sheet improvement) outweigh the challenges described.Positive Updates
Top-line Growth and Record Adjusted EBITDA
Consolidated net sales increased 6.7% in Q2 (adjusted for tariff refunds) and year-to-date sales are up nearly 8%. The company generated a record-setting $63.5 million in adjusted EBITDA in the quarter; consolidated adjusted EBITDA margin was 12.1% and adjusted EBITDA was $4.4 million higher than last year. Non-GAAP diluted EPS rose 8.6% to $1.40 in Q2.
Negative Updates
Vehicle Control Sales Pressure from Wire Set Decline
Vehicle Control net sales were $198.6 million in Q2, down 1.6% year-over-year (adjusted). The primary drag was a significant decline in the wire set category, described as a secular mid-single-digit annual decline, leading customers to adjust stocking and causing quarter-to-quarter order variability. Vehicle Control adjusted EBITDA margin (8.6%) was slightly lower than last year.
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Q2-2026 Updates
Positive
Negative
Top-line Growth and Record Adjusted EBITDA
Consolidated net sales increased 6.7% in Q2 (adjusted for tariff refunds) and year-to-date sales are up nearly 8%. The company generated a record-setting $63.5 million in adjusted EBITDA in the quarter; consolidated adjusted EBITDA margin was 12.1% and adjusted EBITDA was $4.4 million higher than last year. Non-GAAP diluted EPS rose 8.6% to $1.40 in Q2.
Read all positive updates
Company Guidance
Management reiterated full-year 2026 guidance calling for net sales growth in the low- to mid-single-digit percent range (after YTD sales are up nearly 8%), an adjusted EBITDA margin of 11–12% (Q2 adjusted EBITDA was 12.1% and a record $63.5M), interest expense of about $30M, an effective tax rate of 27.5–28%, and depreciation & amortization of $45–50M; they noted YTD cash from operations of $58.3M, capex of $14.9M, net debt of $510.2M with leverage at 2.5x EBITDA and a target to reach ~2.0x by year-end, and cautioned the outlook excludes potential impacts from future tariff changes, Middle East‑related inflation/supply disruptions, or shifts in customers’ supply‑chain financing.Standard Motor Products Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.84B | 1.79B | 1.46B | 1.36B | 1.37B | 1.30B |
| Gross Profit | 578.19M | 541.01M | 413.32M | 379.53M | 373.24M | 367.93M |
| EBITDA | 190.00M | 187.22M | 116.39M | 121.65M | 137.25M | 159.74M |
| Net Income | 51.03M | 41.34M | 53.63M | 63.14M | 73.04M | 90.89M |
Balance Sheet | ||||||
| Total Assets | 2.06B | 2.00B | 1.81B | 1.29B | 1.25B | 1.20B |
| Cash, Cash Equivalents and Short-Term Investments | 78.63M | 72.03M | 44.43M | 32.53M | 21.15M | 21.75M |
| Total Debt | 676.08M | 734.09M | 660.53M | 245.19M | 280.33M | 159.64M |
| Total Liabilities | 1.33B | 1.30B | 1.18B | 642.17M | 633.89M | 585.33M |
| Stockholders Equity | 717.73M | 683.70M | 615.75M | 635.06M | 610.02M | 601.58M |
Cash Flow | ||||||
| Free Cash Flow | 87.23M | 18.72M | 32.67M | 115.63M | -53.49M | 59.69M |
| Operating Cash Flow | 121.61M | 57.44M | 76.69M | 144.26M | -27.53M | 85.56M |
| Investing Cash Flow | -33.87M | -35.66M | -418.68M | -25.70M | -27.82M | -151.25M |
| Financing Cash Flow | -72.35M | -269.00K | 349.55M | -109.61M | 55.50M | 69.01M |
Standard Motor Products Technical Analysis
Positive
38.67
Price Trends
38.83
Positive
37.80
Positive
38.22
Positive
Market Momentum
0.32
Negative
61.39
Neutral
46.62
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 38.67 is above the 20-day moving average (MA) of 38.55, below the 50-day MA of 38.83, and above the 200-day MA of 38.22, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 61.39 is Neutral, neither overbought nor oversold. The STOCH value of 46.62 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $851.13M | 18.38 | 7.36% | 3.31% | 18.32% | 45.19% | |
67 Neutral | $6.54B | 12.13 | 9.19% | 2.14% | 3.55% | 25.67% | |
66 Neutral | $3.98B | 21.34 | 14.76% | ― | 5.04% | -10.80% | |
63 Neutral | $2.79B | 18.67 | 9.71% | 1.23% | -1.13% | -47.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $5.81B | 16.66 | -46.50% | 0.95% | 8.47% | 29.11% | |
49 Neutral | $2.90B | -19.80 | -12.67% | 1.63% | -23.37% | -131.29% |
* Consumer Cyclical Sector Average
SMP
Standard Motor Products
39.58
4.14
11.67%
DAN
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28.02
10.70
61.81%
DORM
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141.54
0.45
0.32%
LEA
Lear
125.27
32.50
35.03%
VC
Visteon
104.33
-8.01
-7.13%
GTX
Garrett Motion
31.41
19.04
153.88%
Standard Motor Products Corporate Events
Executive/Board ChangesShareholder Meetings
Standard Motor Products Shareholders Back Board and Governance
Positive
May 22, 2026
On May 21, 2026, Standard Motor Products, Inc. held its Annual Meeting of Shareholders, at which investors elected eight directors, including CEO Eric P. Sills, to serve for the ensuing year. All board nominees received strong support, indicating ...
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.