MOTORCAR PARTS OF AMERICA IN (MPAA) Stock Fundamental Analysis
NASDAQ:MPAA - US6200711009 - Common Stock
14.53 USD
-0.34 (-2.29%)
14.53 USD
0 (0%)
Taking everything into account, MPAA scores 4 out of 10 in our fundamental rating. MPAA was compared to 80 industry peers in the Automobile Components industry. While MPAA seems to be doing ok healthwise, there are quite some concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on MPAA.
1. Profitability
1.1 Basic Checks
MPAA had positive earnings in the past year.
In the past year MPAA had a positive cash flow from operations.
In multiple years MPAA reported negative net income over the last 5 years.
In multiple years MPAA reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 0.17%, MPAA is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
MPAA has a worse Return On Equity (0.64%) than 72.50% of its industry peers.
The Return On Invested Capital of MPAA (7.10%) is worse than 66.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MPAA is below the industry average of 8.51%.
The 3 year average ROIC (4.70%) for MPAA is below the current ROIC(7.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.17% | ||
| ROE | 0.64% | ||
| ROIC | 7.1% |
ROA(3y)-2.44%
ROA(5y)-0.81%
ROE(3y)-8.71%
ROE(5y)-3.33%
ROIC(3y)4.7%
ROIC(5y)4.19%
1.3 Margins
Looking at the Profit Margin, with a value of 0.21%, MPAA is doing worse than 75.00% of the companies in the same industry.
MPAA has a Operating Margin of 8.11%. This is in the lower half of the industry: MPAA underperforms 61.25% of its industry peers.
MPAA's Operating Margin has improved in the last couple of years.
The Gross Margin of MPAA (20.44%) is worse than 71.25% of its industry peers.
In the last couple of years the Gross Margin of MPAA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.11% | ||
| PM (TTM) | 0.21% | ||
| GM | 20.44% |
OM growth 3Y22.75%
OM growth 5Y3.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.86%
GM growth 5Y-1.67%
2. Health
2.1 Basic Checks
MPAA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MPAA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MPAA has more shares outstanding
Compared to 1 year ago, MPAA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that MPAA is in the distress zone and has some risk of bankruptcy.
MPAA has a worse Altman-Z score (1.48) than 83.75% of its industry peers.
MPAA has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of all of its debts.
MPAA has a better Debt to FCF ratio (1.85) than 93.75% of its industry peers.
MPAA has a Debt/Equity ratio of 0.50. This is a neutral value indicating MPAA is somewhat dependend on debt financing.
MPAA's Debt to Equity ratio of 0.50 is on the low side compared to the rest of the industry. MPAA is outperformed by 71.25% of its industry peers.
Although MPAA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.42
WACC16.77%
2.3 Liquidity
MPAA has a Current Ratio of 1.44. This is a normal value and indicates that MPAA is financially healthy and should not expect problems in meeting its short term obligations.
MPAA's Current ratio of 1.44 is on the low side compared to the rest of the industry. MPAA is outperformed by 82.50% of its industry peers.
MPAA has a Quick Ratio of 1.44. This is a bad value and indicates that MPAA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MPAA (0.42) is worse than 96.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
MPAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1603281467343896320.00%, which is quite impressive.
Measured over the past years, MPAA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.49% on average per year.
The Revenue has been growing slightly by 6.60% in the past year.
MPAA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.17% yearly.
EPS 1Y (TTM)1603281467343896300%
EPS 3Y-37.6%
EPS 5Y-23.49%
EPS Q2Q%139.39%
Revenue 1Y (TTM)6.6%
Revenue growth 3Y5.21%
Revenue growth 5Y7.17%
Sales Q2Q%10.88%
3.2 Future
MPAA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 141.07% yearly.
MPAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.73% yearly.
EPS Next Y253.44%
EPS Next 2Y141.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.61%
Revenue Next 2Y6.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.33, MPAA is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as MPAA.
MPAA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.81, the valuation of MPAA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MPAA indicates a somewhat cheap valuation: MPAA is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, MPAA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 5.81 |
4.2 Price Multiples
78.75% of the companies in the same industry are more expensive than MPAA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MPAA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.93 | ||
| EV/EBITDA | 4.34 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MPAA's earnings are expected to grow with 141.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y141.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MPAA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.53
-0.34 (-2.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners84.8%
Inst Owner Change14.28%
Ins Owners6.26%
Ins Owner Change4.95%
Market Cap281.16M
Analysts82.86
Price Target18.36 (26.36%)
Short Float %5.71%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.09%
Min EPS beat(2)-50.98%
Max EPS beat(2)-29.19%
EPS beat(4)1
Avg EPS beat(4)-7.88%
Min EPS beat(4)-50.98%
Max EPS beat(4)68.85%
EPS beat(8)2
Avg EPS beat(8)-109.28%
EPS beat(12)2
Avg EPS beat(12)-99.19%
EPS beat(16)5
Avg EPS beat(16)-70.87%
Revenue beat(2)1
Avg Revenue beat(2)3.32%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)7.37%
Revenue beat(4)2
Avg Revenue beat(4)2.03%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)7.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)4
Avg Revenue beat(12)-1.99%
Revenue beat(16)8
Avg Revenue beat(16)1.26%
PT rev (1m)12.5%
PT rev (3m)28.57%
EPS NQ rev (1m)-24%
EPS NQ rev (3m)-24%
EPS NY rev (1m)-11.31%
EPS NY rev (3m)-6.29%
Revenue NQ rev (1m)5.05%
Revenue NQ rev (3m)-5.75%
Revenue NY rev (1m)2.5%
Revenue NY rev (3m)2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 5.81 | ||
| P/S | 0.36 | ||
| P/FCF | 3.93 | ||
| P/OCF | 3.68 | ||
| P/B | 1.08 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 4.34 |
EPS(TTM)0.89
EY6.13%
EPS(NY)2.5
Fwd EY17.2%
FCF(TTM)3.69
FCFY25.41%
OCF(TTM)3.95
OCFY27.15%
SpS40.09
BVpS13.44
TBVpS13.25
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.17% | ||
| ROE | 0.64% | ||
| ROCE | 10.27% | ||
| ROIC | 7.1% | ||
| ROICexc | 7.25% | ||
| ROICexgc | 7.29% | ||
| OM | 8.11% | ||
| PM (TTM) | 0.21% | ||
| GM | 20.44% | ||
| FCFM | 9.21% |
ROA(3y)-2.44%
ROA(5y)-0.81%
ROE(3y)-8.71%
ROE(5y)-3.33%
ROIC(3y)4.7%
ROIC(5y)4.19%
ROICexc(3y)4.79%
ROICexc(5y)4.28%
ROICexgc(3y)4.82%
ROICexgc(5y)4.32%
ROCE(3y)7.05%
ROCE(5y)6.31%
ROICexcg growth 3Y31%
ROICexcg growth 5Y6.33%
ROICexc growth 3Y31.18%
ROICexc growth 5Y6.58%
OM growth 3Y22.75%
OM growth 5Y3.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.86%
GM growth 5Y-1.67%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 48.37% | ||
| Cap/Sales | 0.63% | ||
| Interest Coverage | 1.33 | ||
| Cash Conversion | 104.54% | ||
| Profit Quality | 4312.07% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.48 |
F-Score7
WACC16.77%
ROIC/WACC0.42
Cap/Depr(3y)28.8%
Cap/Depr(5y)54.02%
Cap/Sales(3y)0.45%
Cap/Sales(5y)1.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1603281467343896300%
EPS 3Y-37.6%
EPS 5Y-23.49%
EPS Q2Q%139.39%
EPS Next Y253.44%
EPS Next 2Y141.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.6%
Revenue growth 3Y5.21%
Revenue growth 5Y7.17%
Sales Q2Q%10.88%
Revenue Next Year8.61%
Revenue Next 2Y6.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y53.97%
EBIT growth 3Y29.14%
EBIT growth 5Y11%
EBIT Next Year217.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y262.02%
FCF growth 3YN/A
FCF growth 5Y54.54%
OCF growth 1Y285.13%
OCF growth 3YN/A
OCF growth 5Y19.32%