STANDARD MOTOR PRODS (SMP) Stock Fundamental Analysis
NYSE:SMP - New York Stock Exchange, Inc. - US8536661056 - Common Stock - Currency: USD
SMP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 80 industry peers in the Automobile Components industry. Both the profitability and financial health of SMP have multiple concerns. SMP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SMP had positive earnings in the past year.
In the past year SMP had a positive cash flow from operations.
Each year in the past 5 years SMP has been profitable.
Of the past 5 years SMP 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.62%, SMP is doing worse than 70.00% of the companies in the same industry.
SMP's Return On Equity of 4.90% is on the low side compared to the rest of the industry. SMP is outperformed by 70.00% of its industry peers.
The Return On Invested Capital of SMP (5.04%) is worse than 77.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SMP is below the industry average of 9.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 4.9% | ||
| ROIC | 5.04% |
ROA(3y)2.86%
ROA(5y)4.43%
ROE(3y)6.31%
ROE(5y)8.89%
ROIC(3y)6.92%
ROIC(5y)9.42%
1.3 Margins
SMP has a worse Profit Margin (2.02%) than 70.00% of its industry peers.
SMP's Profit Margin has declined in the last couple of years.
SMP has a Operating Margin of 6.42%. This is in the lower half of the industry: SMP underperforms 66.25% of its industry peers.
SMP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 29.66%, SMP belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
SMP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.42% | ||
| PM (TTM) | 2.02% | ||
| GM | 29.66% |
OM growth 3Y-15.4%
OM growth 5Y-6.7%
PM growth 3Y-35.49%
PM growth 5Y-18.07%
GM growth 3Y-0.12%
GM growth 5Y-0.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SMP is destroying value.
The number of shares outstanding for SMP has been reduced compared to 1 year ago.
Compared to 5 years ago, SMP has less shares outstanding
The debt/assets ratio for SMP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.10 indicates that SMP is not a great score, but indicates only limited risk for bankruptcy at the moment.
SMP has a worse Altman-Z score (2.10) than 73.75% of its industry peers.
SMP has a debt to FCF ratio of 34.02. This is a negative value and a sign of low solvency as SMP would need 34.02 years to pay back of all of its debts.
The Debt to FCF ratio of SMP (34.02) is worse than 76.25% of its industry peers.
SMP has a Debt/Equity ratio of 0.98. This is a neutral value indicating SMP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, SMP is not doing good in the industry: 83.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 34.02 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.57
WACC8.82%
2.3 Liquidity
SMP has a Current Ratio of 2.32. This indicates that SMP is financially healthy and has no problem in meeting its short term obligations.
SMP has a better Current ratio (2.32) than 77.50% of its industry peers.
SMP has a Quick Ratio of 2.32. This is a bad value and indicates that SMP is not financially healthy enough and could expect problems in meeting its short term obligations.
SMP has a worse Quick ratio (0.82) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
SMP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.80%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.51% on average over the past years.
Looking at the last year, SMP shows a quite strong growth in Revenue. The Revenue has grown by 13.53% in the last year.
SMP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
EPS 1Y (TTM)27.8%
EPS 3Y-10.6%
EPS 5Y0.51%
EPS Q2Q%80%
Revenue 1Y (TTM)13.53%
Revenue growth 3Y4.07%
Revenue growth 5Y5.17%
Sales Q2Q%24.74%
3.2 Future
SMP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.50% yearly.
SMP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.69% yearly.
EPS Next Y14.02%
EPS Next 2Y15.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.99%
Revenue Next 2Y11.69%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.37 indicates a reasonable valuation of SMP.
Based on the Price/Earnings ratio, SMP is valued a bit cheaper than 75.00% of the companies in the same industry.
SMP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.52.
A Price/Forward Earnings ratio of 7.82 indicates a rather cheap valuation of SMP.
Based on the Price/Forward Earnings ratio, SMP is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, SMP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 7.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SMP is valued a bit more expensive than 65.00% of the companies in the same industry.
75.00% of the companies in the same industry are cheaper than SMP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.11 | ||
| EV/EBITDA | 9.95 |
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.
A more expensive valuation may be justified as SMP's earnings are expected to grow with 15.50% in the coming years.
PEG (NY)0.67
PEG (5Y)18.34
EPS Next 2Y15.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SMP has a Yearly Dividend Yield of 3.70%.
Compared to an average industry Dividend Yield of 4.19, SMP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, SMP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
The dividend of SMP has a limited annual growth rate of 4.76%.
SMP has paid a dividend for at least 10 years, which is a reliable track record.
SMP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.76%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
82.34% of the earnings are spent on dividend by SMP. This is not a sustainable payout ratio.
SMP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.34%
EPS Next 2Y15.5%
EPS Next 3YN/A
33.16
+0.25 (+0.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners82.91%
Inst Owner Change0%
Ins Owners5.07%
Ins Owner Change0.94%
Market Cap728.86M
Analysts83.33
Price Target41.31 (24.58%)
Short Float %3.23%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend1.16
Dividend Growth(5Y)4.76%
DP82.34%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)44.21%
Min EPS beat(2)6.36%
Max EPS beat(2)82.06%
EPS beat(4)4
Avg EPS beat(4)31.89%
Min EPS beat(4)6.36%
Max EPS beat(4)82.06%
EPS beat(8)6
Avg EPS beat(8)12.88%
EPS beat(12)9
Avg EPS beat(12)9.79%
EPS beat(16)13
Avg EPS beat(16)17.86%
Revenue beat(2)2
Avg Revenue beat(2)8.39%
Min Revenue beat(2)3.78%
Max Revenue beat(2)13%
Revenue beat(4)3
Avg Revenue beat(4)5.56%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)13%
Revenue beat(8)4
Avg Revenue beat(8)0.84%
Revenue beat(12)4
Avg Revenue beat(12)0.14%
Revenue beat(16)8
Avg Revenue beat(16)2.96%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.82%
EPS NY rev (1m)0%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 7.82 | ||
| P/S | 0.47 | ||
| P/FCF | 38.11 | ||
| P/OCF | 11.72 | ||
| P/B | 1.14 | ||
| P/tB | 8.44 | ||
| EV/EBITDA | 9.95 |
EPS(TTM)3.54
EY10.68%
EPS(NY)4.24
Fwd EY12.79%
FCF(TTM)0.87
FCFY2.62%
OCF(TTM)2.83
OCFY8.53%
SpS70.33
BVpS29.02
TBVpS3.93
PEG (NY)0.67
PEG (5Y)18.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 4.9% | ||
| ROCE | 6.66% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.22% | ||
| ROICexgc | 8.46% | ||
| OM | 6.42% | ||
| PM (TTM) | 2.02% | ||
| GM | 29.66% | ||
| FCFM | 1.24% |
ROA(3y)2.86%
ROA(5y)4.43%
ROE(3y)6.31%
ROE(5y)8.89%
ROIC(3y)6.92%
ROIC(5y)9.42%
ROICexc(3y)7.12%
ROICexc(5y)9.79%
ROICexgc(3y)10.05%
ROICexgc(5y)13.78%
ROCE(3y)9.14%
ROCE(5y)12.5%
ROICexcg growth 3Y-27.58%
ROICexcg growth 5Y-10.38%
ROICexc growth 3Y-29.73%
ROICexc growth 5Y-15.14%
OM growth 3Y-15.4%
OM growth 5Y-6.7%
PM growth 3Y-35.49%
PM growth 5Y-18.07%
GM growth 3Y-0.12%
GM growth 5Y-0.17%
F-Score5
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 34.02 | ||
| Debt/EBITDA | 4.7 | ||
| Cap/Depr | 125.26% | ||
| Cap/Sales | 2.79% | ||
| Interest Coverage | 5.05 | ||
| Cash Conversion | 46.55% | ||
| Profit Quality | 61.22% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.1 |
F-Score5
WACC8.82%
ROIC/WACC0.57
Cap/Depr(3y)110.17%
Cap/Depr(5y)98.63%
Cap/Sales(3y)2.34%
Cap/Sales(5y)2.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.8%
EPS 3Y-10.6%
EPS 5Y0.51%
EPS Q2Q%80%
EPS Next Y14.02%
EPS Next 2Y15.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.53%
Revenue growth 3Y4.07%
Revenue growth 5Y5.17%
Sales Q2Q%24.74%
Revenue Next Year20.99%
Revenue Next 2Y11.69%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.09%
EBIT growth 3Y-11.96%
EBIT growth 5Y-1.88%
EBIT Next Year88.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-40.42%
FCF growth 3Y-18.2%
FCF growth 5Y-11.65%
OCF growth 1Y10.85%
OCF growth 3Y-3.58%
OCF growth 5Y-0.05%