Standard Motor Products (SMP) AI Stock Analysis

• Market Cap: $865.89M
• Dividend Yield: 3.32%
• Average Volume (3M): 143.38K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.75
• Revenue Growth: 23.96%
• EPS Growth: 11.01%
• Country: US
• Employees: 5,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.36
• Shares Outstanding: 21,999,190
• 10 Day Avg. Volume: 117,611
• 30 Day Avg. Volume: 143,375
• PEG Ratio: 0.43
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 20.67
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: 9.35
• 1Y Price Target: $49.00
• Price Target Upside: 24.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.28
• Revenue Forecast (FY): $1.88B

• Rating: 65 Neutral
• Price Target: $40.00 ▲(1.63% 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.

Positive Factors

Revenue Growth

The strong revenue growth driven by acquisitions and market share gains highlights the company's ability to expand its business and capture new opportunities, ensuring long-term sustainability.

Strategic Acquisitions

The successful integration of Nissens and its significant revenue contribution demonstrate effective strategic acquisitions, enhancing product offerings and market presence.

Cash Flow Improvement

Improved cash generation and debt reduction efforts indicate strong financial management, providing the company with greater flexibility for future investments and growth.

Negative Factors

Decline in Vehicle Control Sales

The decline in Vehicle Control sales suggests challenges in certain product lines, which could affect overall revenue growth if not addressed.

Higher Operating Expenses

Rising operating expenses can pressure profit margins, potentially impacting the company's ability to maintain profitability if costs are not managed effectively.

Engineered Solutions Sales Decline

The decline in Engineered Solutions sales and impact on EBITDA reflect challenges in maintaining segment profitability, which could hinder overall financial performance.

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 primarily through the sale of automotive replacement parts to wholesalers, retailers, and repair shops in the aftermarket sector. The company's revenue model is built around its extensive product catalog, which includes thousands of SKUs across various categories. Key revenue streams include direct sales of parts, private label products, and partnerships with major automotive retailers. SMP also benefits from its established relationships with original equipment manufacturers (OEMs) and its ability to adapt to market trends, contributing to its consistent earnings. Additionally, SMP invests in research and development to create new products that meet evolving customer needs, helping to drive sales and maintain a competitive edge in the industry.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 39.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 39.36 is above the 20-day moving average (MA) of 37.98, above the 50-day MA of 37.66, and above the 200-day MA of 34.05, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 61.61 is Neutral, neither overbought nor oversold. The STOCH value of 84.14 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
DORM	75 Outperform	$3.85B	15.70	18.19%	―	7.94%	34.84%
LEA	75 Outperform	$6.48B	15.28	8.96%	2.63%	-1.90%	-13.86%
VC	73 Outperform	$2.68B	8.82	23.16%	0.57%	-4.03%	-39.51%
GTX	71 Outperform	$3.70B	12.09	―	1.49%	-1.09%	56.16%
SMP	65 Neutral	$865.89M	12.81	10.49%	3.32%	23.96%	11.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	55 Neutral	$3.16B	61.25	-4.82%	1.70%	-18.23%	―