Standard Motor Products (SMP) AI Stock Analysis

• Market Cap: $879.51M
• Dividend Yield: 3.05%
• Average Volume (3M): 211.79K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.82
• Revenue Growth: 17.98%
• EPS Growth: 9.41%
• Country: US
• Employees: 5,600
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): 1.29
• Shares Outstanding: 21,987,673
• 10 Day Avg. Volume: 169,017
• 30 Day Avg. Volume: 211,793
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 2.82
• Enterprise Value/Ebitda: 9.94
• 1Y Price Target: $47.00
• Price Target Upside: 17.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: $43.00 ▲(7.53% Upside)

Standard Motor Products is performing well with strong revenue growth and efficient cost management. The bullish technical indicators and positive earnings call sentiment further enhance the stock's attractiveness. While profitability and cash flow conversion need improvement, the company's strategic initiatives and market position provide a positive outlook.

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

SMP 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 39.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 39.99 is above the 20-day moving average (MA) of 38.61, above the 50-day MA of 34.88, and above the 200-day MA of 30.23, indicating a bullish trend. The MACD of 1.46 indicates Positive momentum. The RSI at 66.81 is Neutral, neither overbought nor oversold. The STOCH value of 86.20 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
PLOW	81 Outperform	$772.10M	12.13	25.41%	3.53%	1.47%	131.61%
SMP	80 Outperform	$879.51M	13.56	9.90%	3.05%	17.98%	9.41%
MPAA	68 Neutral	$287.77M	185.10	0.63%	―	6.59%	―
MLR	63 Neutral	$479.06M	11.42	10.64%	1.87%	-24.48%	-40.73%
Sector *	61 Neutral	$17.99B	12.87	-5.33%	2.97%	1.27%	-14.28%
MNRO	56 Neutral	$514.74M	21.62	-3.03%	6.33%	-3.20%	-163.24%
SSUP	43 Neutral	$3.21M	―	-80.07%	―	-8.31%	-56.03%

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.