Standard Motor Products (SMP) AI Stock Analysis

• Market Cap: $878.75M
• Dividend Yield: 3.32%
• Average Volume (3M): 115.93K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.80
• Revenue Growth: 23.96%
• EPS Growth: 11.01%
• Country: US
• Employees: 5,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.56
• Shares Outstanding: 21,999,190
• 10 Day Avg. Volume: 122,878
• 30 Day Avg. Volume: 115,929
• PEG Ratio: -0.83
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 43.29
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 2.65
• Enterprise Value/Ebitda: 10.53
• 1Y Price Target: $54.00
• Price Target Upside: 36.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.28
• Revenue Forecast (FY): $1.86B

• Rating: 53 Neutral
• Price Target: $40.00 ▲(0.81% Upside)
• Action: Downgraded Date: 02/27/26
• Date: Action: Downgraded 02/27/26

The score is held back primarily by weakening profitability, higher leverage, and reduced cash-flow strength. These are partially offset by reasonable valuation with a solid dividend yield, a neutral-to-mixed technical picture, and a generally constructive earnings outlook that includes margin targets and planned deleveraging.

Positive Factors

Acquisition-driven revenue and margin lift

The Nissens acquisition materially expanded scale and higher‑margin revenue: $305M contribution and a 15.9% adjusted EBITDA margin provide durable earnings diversification. Combined with mid-single-digit organic growth, the deal increases TAM, cross-sell potential and structural margin uplift over the medium term.

Market position and product breadth

SMP's long-standing aftermarket franchise, broad SKU base and deep distribution relationships create recurring demand and high customer switching costs. Serving wholesalers, retailers and repair shops across domestic and import vehicles supports stable revenue streams and resilience to individual model cycles over the next several quarters.

Operational initiatives and margin guidance

Management's explicit margin targets, clear synergy targets and a near-complete distribution center indicate sustained operational focus. Achieving $8M–$12M in run‑rate savings and reducing recurring CapEx demand from the DC improves structural EBITDA conversion and supports durable margin recovery if execution holds.

Negative Factors

Elevated leverage

Debt surged from ~$33M in 2020 to ~$682M in 2025, raising leverage and compressing returns. With net debt of ~$546.7M and a 2.7x EBITDA leverage level, interest expense (~$30M guidance) and limited headroom reduce financial flexibility and increase vulnerability to slower cash flow or higher financing costs.

Weaker cash generation and free cash flow

Operating cash flow and FCF have materially weakened, with FCF roughly one‑third of net income in 2025. Inventory build and tariff absorption reduced cash conversion, limiting the company's ability to deleverage, invest in growth, or fund shareholder returns without tapping liquidity or increasing leverage further.

Acquisition integration & control risk

Discovering a material weakness at Nissens raises durable execution and reporting risks from the acquisition. Remediation will demand management bandwidth and could delay realization of synergies or create compliance costs, increasing the uncertainty around projected margin improvements and integration-driven benefits.

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

Strong revenue growth is offset by weaker business quality and financial flexibility: profitability and net margin have deteriorated since 2021, leverage rose sharply (debt roughly in line with equity), and cash generation weakened with a notable drop in operating and free cash flow in 2025.

Income Statement

Revenue has accelerated meaningfully, rising from about $1.13B (2020) to $1.79B (2025 annual), with strong step-ups in 2024–2025. However, profitability has weakened: net margin fell from ~7.0% (2021) to ~2.3% (2025), and net income has trended down from ~$90.9M (2021) to ~$41.3M (2025). Gross margin improved in 2025 versus 2024, but overall earnings power and margin stability have deteriorated versus earlier years.

Balance Sheet

Leverage has risen sharply. Total debt increased from a low level in 2020 (~$33M) to ~$682M in 2025, pushing debt roughly in line with equity (debt-to-equity ~1.0 in 2025). While equity has grown (to ~$684M) and total assets expanded, returns on equity have compressed (from ~15% in 2021 to ~6% in 2025), suggesting the balance sheet is carrying more debt without a commensurate lift in profitability.

Cash Flow

Cash generation has become less consistent. Operating cash flow is positive in most years but was negative in 2022, and it has declined to ~$57.4M in 2025 from much higher levels in 2023 (~$144.3M). Free cash flow has also dropped to ~$18.7M in 2025 and declined materially versus 2024 (down ~58%), with free cash flow running well below net income in 2025 (about one-third), pointing to weaker cash conversion and reduced financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.79B	1.46B	1.36B	1.37B	1.30B
Gross Profit	559.41M	413.32M	379.53M	373.24M	367.93M
EBITDA	185.71M	116.39M	121.65M	137.25M	159.74M
Net Income	41.34M	53.63M	63.14M	73.04M	90.89M
Balance Sheet
Total Assets	2.00B	1.81B	1.29B	1.25B	1.20B
Cash, Cash Equivalents and Short-Term Investments	72.03M	44.43M	32.53M	21.15M	21.75M
Total Debt	682.10M	660.53M	245.19M	280.33M	159.64M
Total Liabilities	1.30B	1.18B	642.17M	633.89M	585.33M
Stockholders Equity	683.70M	615.75M	635.06M	610.02M	601.58M
Cash Flow
Free Cash Flow	18.72M	32.67M	115.63M	-53.49M	59.69M
Operating Cash Flow	57.44M	76.69M	144.26M	-27.53M	85.56M
Investing Cash Flow	-35.66M	-418.68M	-25.70M	-27.82M	-151.25M
Financing Cash Flow	-269.00K	349.55M	-109.61M	55.50M	69.01M

Standard Motor Products Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.68
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 39.68 is below the 20-day moving average (MA) of 43.10, below the 50-day MA of 40.18, and above the 200-day MA of 36.45, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 38.21 is Neutral, neither overbought nor oversold. The STOCH value of 17.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SMP.

Standard Motor Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DORM	73 Outperform	$3.86B	14.25	14.74%	―	7.94%	34.84%
LEA	72 Outperform	$6.80B	16.46	9.21%	2.63%	-1.90%	-13.86%
VC	72 Outperform	$2.62B	13.43	14.37%	0.57%	-4.03%	-39.51%
GTX	63 Neutral	$3.85B	13.31	―	1.49%	-1.09%	56.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SMP	53 Neutral	$878.75M	12.92	10.49%	3.32%	23.96%	11.01%
DAN	53 Neutral	$4.18B	80.90	-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.