Standard Motor Products (SMP) AI Stock Analysis

• Market Cap: $958.94M
• Dividend Yield: 3.32%
• Average Volume (3M): 108.73K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.74
• 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: 112,139
• 30 Day Avg. Volume: 108,727
• PEG Ratio: -0.82
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 20.67
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 3.04
• Enterprise Value/Ebitda: 9.51
• 1Y Price Target: $49.00
• Price Target Upside: 12.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $45.00 ▲(3.23% Upside)

The score is driven primarily by solid financial performance with some profitability and cash-conversion constraints, plus constructive technical trend signals. Valuation adds support with a moderate P/E and strong yield, while the earnings call contributes positively due to raised guidance and strong acquisition performance; the dividend increase is an additional modest positive.

Positive Factors

Revenue Growth

SMP's ~25% consolidated sales growth reflects durable top-line expansion driven by both organic legacy growth and strategic M&A. Sustained revenue scaling improves bargaining power with customers and suppliers, funds reinvestment, and supports long-term margin and market-share gains.

Acquisition Integration

The successful integration of Nissens, adding ~$85M of revenue at mid-teens EBITDA, demonstrates SMP's ability to acquire and extract higher-margin cash flow. This structurally improves consolidated profitability mix and expands product reach and cross-selling opportunities over multiple quarters.

Shareholder Returns

A dividend raise signals management confidence in persistent cash generation. Coupled with positive free cash flow growth (10.85%) and meaningful operating cash from operations ($85.7M YTD), the payout increase indicates durable ability to return capital without eroding core liquidity.

Negative Factors

Cash Conversion

Low operating cash conversion means reported earnings are not fully converting to cash, limiting internal funding for capex, debt reduction, or dividends. Over time this can force reliance on external financing or constrain strategic flexibility despite positive headline FCF growth.

Modest Profitability

Relatively low net and operating margins reduce SMP's buffer against cost inflation and competitive price pressure. With modest profitability, the company has less ability to self-fund growth initiatives or absorb tariff and distribution cost volatility over the medium term.

Leverage Level

A debt/equity near 1.0 leaves less balance-sheet room for cyclical stress or large opportunistic investments. Management's target to reduce leverage to 2x adjusted EBITDA by end-2026 implies allocation of future cash flows to debt paydown, which could limit buybacks, M&A or other capital uses in the medium term.

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

Solid TTM revenue growth (6.04%) and stable gross margin (30.78%), but profitability is modest with a low net margin (3.75%). Leverage is balanced but somewhat elevated (debt-to-equity 0.97), and cash conversion is a weakness (operating cash flow to net income 0.15; free cash flow to net income 0.53) despite positive free cash flow growth (10.85%).

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: 43.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 43.59 is above the 20-day moving average (MA) of 39.80, above the 50-day MA of 38.49, and above the 200-day MA of 35.28, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 72.29 is Negative, neither overbought nor oversold. The STOCH value of 88.17 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
SMP	74 Outperform	$958.94M	14.19	10.49%	3.32%	23.96%	11.01%
DORM	73 Outperform	$3.92B	16.01	18.19%	―	7.94%	34.84%
LEA	73 Outperform	$6.87B	16.25	9.05%	2.63%	-1.90%	-13.86%
VC	73 Outperform	$2.75B	9.05	23.16%	0.57%	-4.03%	-39.51%
GTX	71 Outperform	$3.58B	11.71	―	1.49%	-1.09%	56.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	53 Neutral	$3.54B	68.61	-4.82%	1.70%	-18.23%	―

Standard Motor Products Corporate Events

Standard Motor Products Announces Quarterly Dividend Increase

On February 2, 2026, Standard Motor Products, Inc. announced that its Board of Directors approved an increase in the company’s quarterly common stock dividend from $0.31 to $0.33 per share, with the higher dividend to be paid on March 2, 2026 to shareholders of record as of February 16, 2026. The dividend hike underscores the company’s ongoing commitment to returning capital to shareholders and signals confidence in its financial position and cash-generation capabilities within the automotive parts sector.

The most recent analyst rating on (SMP) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Standard Motor Products stock, see the SMP Stock Forecast page.