MOTORCAR PARTS OF AMERICA IN (MPAA) Stock Fundamental Analysis
NASDAQ:MPAA - Nasdaq - US6200711009 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to MPAA. MPAA was compared to 81 industry peers in the Automobile Components industry. MPAA may be in some trouble as it scores bad on both profitability and health. MPAA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MPAA was profitable.
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
MPAA has a Return On Assets of -1.83%. This is in the lower half of the industry: MPAA underperforms 76.54% of its industry peers.
Looking at the Return On Equity, with a value of -6.63%, MPAA is doing worse than 77.78% of the companies in the same industry.
MPAA has a Return On Invested Capital of 6.09%. This is in the lower half of the industry: MPAA underperforms 70.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MPAA is significantly below the industry average of 9.05%.
The last Return On Invested Capital (6.09%) for MPAA is above the 3 year average (3.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.83% | ||
| ROE | -6.63% | ||
| ROIC | 6.09% |
ROA(3y)-1.52%
ROA(5y)-0.59%
ROE(3y)-5.41%
ROE(5y)-2.35%
ROIC(3y)3.45%
ROIC(5y)3.76%
1.3 Margins
With a Operating Margin value of 7.12%, MPAA is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MPAA has grown nicely.
With a Gross Margin value of 19.92%, MPAA is not doing good in the industry: 71.60% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MPAA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.12% | ||
| PM (TTM) | N/A | ||
| GM | 19.92% |
OM growth 3Y2.34%
OM growth 5Y10.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.02%
GM growth 5Y-0.42%
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.
The number of shares outstanding for MPAA has been increased 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 1.40. This is a bad value and indicates that MPAA is not financially healthy and even has some risk of bankruptcy.
MPAA's Altman-Z score of 1.40 is on the low side compared to the rest of the industry. MPAA is outperformed by 85.19% of its industry peers.
The Debt to FCF ratio of MPAA is 5.23, which is a neutral value as it means it would take MPAA, 5.23 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.23, MPAA is doing worse than 64.20% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that MPAA is not too dependend on debt financing.
MPAA has a worse Debt to Equity ratio (0.49) than 71.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 5.23 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.34
WACC17.67%
2.3 Liquidity
MPAA has a Current Ratio of 1.45. This is a normal value and indicates that MPAA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.45, MPAA is doing worse than 82.72% of the companies in the same industry.
A Quick Ratio of 0.39 indicates that MPAA may have some problems paying its short term obligations.
The Quick ratio of MPAA (0.39) is worse than 95.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
MPAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 125.00%, which is quite impressive.
The earnings per share for MPAA have been decreasing by -26.54% on average. This is quite bad
The Revenue has been growing slightly by 4.27% in the past year.
MPAA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.71% yearly.
EPS 1Y (TTM)125%
EPS 3Y-41.62%
EPS 5Y-26.54%
EPS Q2Q%229.63%
Revenue 1Y (TTM)4.27%
Revenue growth 3Y9.89%
Revenue growth 5Y8.71%
Sales Q2Q%8.33%
3.2 Future
The Earnings Per Share is expected to grow by 109.36% on average over the next years. This is a very strong growth
Based on estimates for the next years, MPAA will show a small growth in Revenue. The Revenue will grow by 4.91% on average per year.
EPS Next Y46.11%
EPS Next 2Y109.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.88%
Revenue Next 2Y4.91%
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 24.76, MPAA is valued on the expensive side.
Based on the Price/Earnings ratio, MPAA is valued a bit more expensive than 67.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, MPAA is valued at the same level.
Based on the Price/Forward Earnings ratio of 6.87, 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 74.07% of the companies listed in the same industry.
MPAA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 6.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MPAA indicates a somewhat cheap valuation: MPAA is cheaper than 77.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MPAA is valued a bit cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.78 | ||
| EV/EBITDA | 3.74 |
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.
A more expensive valuation may be justified as MPAA's earnings are expected to grow with 109.36% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y109.36%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MPAA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.14
-0.1 (-0.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners80.5%
Inst Owner Change0.74%
Ins Owners5.67%
Ins Owner Change2.86%
Market Cap218.12M
Analysts82.86
Price Target14.28 (28.19%)
Short Float %2.77%
Short Ratio4.66
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)1
Avg EPS beat(2)24.32%
Min EPS beat(2)-20.2%
Max EPS beat(2)68.85%
EPS beat(4)1
Avg EPS beat(4)-135%
Min EPS beat(4)-562.18%
Max EPS beat(4)68.85%
EPS beat(8)2
Avg EPS beat(8)-121.95%
EPS beat(12)3
Avg EPS beat(12)-95.61%
EPS beat(16)7
Avg EPS beat(16)-59.82%
Revenue beat(2)1
Avg Revenue beat(2)0.75%
Min Revenue beat(2)-0.19%
Max Revenue beat(2)1.69%
Revenue beat(4)1
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-6.46%
Max Revenue beat(4)1.69%
Revenue beat(8)3
Avg Revenue beat(8)-2.48%
Revenue beat(12)5
Avg Revenue beat(12)-1.67%
Revenue beat(16)9
Avg Revenue beat(16)2.64%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 6.87 | ||
| P/S | 0.29 | ||
| P/FCF | 8.78 | ||
| P/OCF | 8.05 | ||
| P/B | 0.83 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 3.74 |
EPS(TTM)0.45
EY4.04%
EPS(NY)1.62
Fwd EY14.56%
FCF(TTM)1.27
FCFY11.39%
OCF(TTM)1.38
OCFY12.42%
SpS38.49
BVpS13.42
TBVpS13.22
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.83% | ||
| ROE | -6.63% | ||
| ROCE | 8.93% | ||
| ROIC | 6.09% | ||
| ROICexc | 6.21% | ||
| ROICexgc | 6.24% | ||
| OM | 7.12% | ||
| PM (TTM) | N/A | ||
| GM | 19.92% | ||
| FCFM | 3.3% |
ROA(3y)-1.52%
ROA(5y)-0.59%
ROE(3y)-5.41%
ROE(5y)-2.35%
ROIC(3y)3.45%
ROIC(5y)3.76%
ROICexc(3y)3.53%
ROICexc(5y)3.91%
ROICexgc(3y)3.56%
ROICexgc(5y)3.96%
ROCE(3y)5.36%
ROCE(5y)5.89%
ROICexcg growth 3Y4.87%
ROICexcg growth 5Y8.45%
ROICexc growth 3Y5.17%
ROICexc growth 5Y8.88%
OM growth 3Y2.34%
OM growth 5Y10.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.02%
GM growth 5Y-0.42%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 5.23 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 21.19% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 1.06 | ||
| Cash Conversion | 42.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 1.4 |
F-Score7
WACC17.67%
ROIC/WACC0.34
Cap/Depr(3y)33.65%
Cap/Depr(5y)74.84%
Cap/Sales(3y)0.64%
Cap/Sales(5y)1.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)125%
EPS 3Y-41.62%
EPS 5Y-26.54%
EPS Q2Q%229.63%
EPS Next Y46.11%
EPS Next 2Y109.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.27%
Revenue growth 3Y9.89%
Revenue growth 5Y8.71%
Sales Q2Q%8.33%
Revenue Next Year3.88%
Revenue Next 2Y4.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.18%
EBIT growth 3Y12.47%
EBIT growth 5Y19.6%
EBIT Next Year81.8%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y149.51%
FCF growth 3Y-3.25%
FCF growth 5YN/A
OCF growth 1Y161.41%
OCF growth 3Y-11.28%
OCF growth 5YN/A