MOTORCAR PARTS OF AMERICA IN (MPAA) Stock Fundamental Analysis
NASDAQ:MPAA - Nasdaq - US6200711009 - Common Stock - Currency: USD
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. The financial health of MPAA is average, but there are quite some concerns on its profitability. MPAA scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year MPAA was profitable.
MPAA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MPAA reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: MPAA reported negative operating cash flow in multiple years.
1.2 Ratios
MPAA has a worse Return On Assets (-2.03%) than 76.25% of its industry peers.
With a Return On Equity value of -7.56%, MPAA is not doing good in the industry: 76.25% of the companies in the same industry are doing better.
MPAA's Return On Invested Capital of 6.32% is on the low side compared to the rest of the industry. MPAA is outperformed by 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MPAA is below the industry average of 8.78%.
The last Return On Invested Capital (6.32%) for MPAA is above the 3 year average (4.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.03% | ||
| ROE | -7.56% | ||
| ROIC | 6.32% |
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
The Operating Margin of MPAA (7.37%) is worse than 62.50% of its industry peers.
In the last couple of years the Operating Margin of MPAA has grown nicely.
MPAA has a worse Gross Margin (20.31%) than 72.50% of its industry peers.
MPAA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.37% | ||
| PM (TTM) | N/A | ||
| GM | 20.31% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MPAA is destroying value.
The number of shares outstanding for MPAA has been reduced compared to 1 year ago.
The number of shares outstanding for MPAA has been increased compared to 5 years ago.
Compared to 1 year ago, MPAA has an improved debt to assets ratio.
2.2 Solvency
MPAA has an Altman-Z score of 1.46. This is a bad value and indicates that MPAA is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MPAA (1.46) is worse than 83.75% of its industry peers.
The Debt to FCF ratio of MPAA is 3.16, which is a good value as it means it would take MPAA, 3.16 years of fcf income to pay off all of its debts.
MPAA has a Debt to FCF ratio of 3.16. This is amongst the best in the industry. MPAA outperforms 93.75% of its industry peers.
MPAA has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.50, MPAA is doing worse than 71.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.37
WACC16.97%
2.3 Liquidity
MPAA has a Current Ratio of 1.46. This is a normal value and indicates that MPAA is financially healthy and should not expect problems in meeting its short term obligations.
MPAA has a worse Current ratio (1.46) than 82.50% of its industry peers.
MPAA has a Quick Ratio of 1.46. This is a bad value and indicates that MPAA is not financially healthy enough and could expect problems in meeting its short term obligations.
MPAA has a worse Quick ratio (0.43) than 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.43 |
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.
MPAA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.49% yearly.
Looking at the last year, MPAA shows a small growth in Revenue. The Revenue has grown by 5.53% in the last 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)5.53%
Revenue growth 3Y5.21%
Revenue growth 5Y7.17%
Sales Q2Q%10.88%
3.2 Future
Based on estimates for the next years, MPAA will show a very strong growth in Earnings Per Share. The EPS will grow by 142.54% on average per year.
Based on estimates for the next years, MPAA will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.
EPS Next Y298.51%
EPS Next 2Y142.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y5.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.96, MPAA is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as MPAA.
MPAA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.93.
A Price/Forward Earnings ratio of 5.61 indicates a rather cheap valuation of MPAA.
MPAA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MPAA is cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MPAA to the average of the S&P500 Index (35.31), we can say MPAA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 5.61 |
4.2 Price Multiples
MPAA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MPAA is cheaper than 73.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MPAA is valued cheaper than 96.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.72 | ||
| EV/EBITDA | 4.64 |
4.3 Compensation for Growth
MPAA's 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 142.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y142.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MPAA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.2
-0.38 (-2.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners84.8%
Inst Owner Change6.28%
Ins Owners6.26%
Ins Owner Change4.95%
Market Cap274.77M
Analysts82.86
Price Target16.32 (14.93%)
Short Float %5.91%
Short Ratio4.71
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)-35.59%
Min EPS beat(2)-50.98%
Max EPS beat(2)-20.2%
EPS beat(4)1
Avg EPS beat(4)-141.13%
Min EPS beat(4)-562.18%
Max EPS beat(4)68.85%
EPS beat(8)2
Avg EPS beat(8)-114.36%
EPS beat(12)3
Avg EPS beat(12)-95.87%
EPS beat(16)6
Avg EPS beat(16)-63.84%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)1.69%
Revenue beat(4)1
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-3.45%
Max Revenue beat(4)1.69%
Revenue beat(8)2
Avg Revenue beat(8)-2.78%
Revenue beat(12)4
Avg Revenue beat(12)-2.3%
Revenue beat(16)8
Avg Revenue beat(16)2.13%
PT rev (1m)0%
PT rev (3m)14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-41.94%
EPS NY rev (1m)0%
EPS NY rev (3m)5.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 5.61 | ||
| P/S | 0.36 | ||
| P/FCF | 6.72 | ||
| P/OCF | 6.04 | ||
| P/B | 1.07 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 4.64 |
EPS(TTM)0.89
EY6.27%
EPS(NY)2.53
Fwd EY17.81%
FCF(TTM)2.11
FCFY14.88%
OCF(TTM)2.35
OCFY16.55%
SpS39.14
BVpS13.32
TBVpS13.12
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.03% | ||
| ROE | -7.56% | ||
| ROCE | 9.2% | ||
| ROIC | 6.32% | ||
| ROICexc | 6.43% | ||
| ROICexgc | 6.46% | ||
| OM | 7.37% | ||
| PM (TTM) | N/A | ||
| GM | 20.31% | ||
| FCFM | 5.4% |
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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.16 | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 44.02% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 1.15 | ||
| Cash Conversion | 68.68% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 1.46 |
F-Score7
WACC16.97%
ROIC/WACC0.37
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 Y298.51%
EPS Next 2Y142.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.53%
Revenue growth 3Y5.21%
Revenue growth 5Y7.17%
Sales Q2Q%10.88%
Revenue Next Year5.96%
Revenue Next 2Y5.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y31.83%
EBIT growth 3Y29.14%
EBIT growth 5Y11%
EBIT Next Year217.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y7.14%
FCF growth 3YN/A
FCF growth 5Y54.54%
OCF growth 1Y16.1%
OCF growth 3YN/A
OCF growth 5Y19.32%