STANDARD MOTOR PRODS (SMP) Stock Fundamental Analysis
NYSE:SMP - New York Stock Exchange, Inc. - US8536661056 - Common Stock - Currency: USD
Overall SMP gets a fundamental rating of 4 out of 10. We evaluated SMP against 81 industry peers in the Automobile Components industry. SMP has a bad profitability rating. Also its financial health evaluation is rather negative. SMP is not valued too expensively and it also shows a decent growth rate. Finally SMP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SMP was profitable.
SMP had a positive operating cash flow in the past year.
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
SMP has a worse Return On Assets (1.52%) than 70.37% of its industry peers.
The Return On Equity of SMP (4.47%) is worse than 69.14% of its industry peers.
SMP has a Return On Invested Capital of 4.85%. This is in the lower half of the industry: SMP underperforms 76.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SMP is in line with the industry average of 8.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.52% | ||
| ROE | 4.47% | ||
| ROIC | 4.85% |
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
The Profit Margin of SMP (1.88%) is worse than 69.14% of its industry peers.
SMP's Profit Margin has declined in the last couple of years.
SMP has a worse Operating Margin (6.03%) than 65.43% of its industry peers.
In the last couple of years the Operating Margin of SMP has declined.
The Gross Margin of SMP (28.92%) is better than 86.42% of its industry peers.
In the last couple of years the Gross Margin of SMP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.03% | ||
| PM (TTM) | 1.88% | ||
| GM | 28.92% |
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
SMP 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 SMP has been reduced compared to 1 year ago.
Compared to 5 years ago, SMP has less shares outstanding
Compared to 1 year ago, SMP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.00 indicates that SMP is not a great score, but indicates only limited risk for bankruptcy at the moment.
SMP's Altman-Z score of 2.00 is on the low side compared to the rest of the industry. SMP is outperformed by 74.07% of its industry peers.
The Debt to FCF ratio of SMP is 17.21, which is on the high side as it means it would take SMP, 17.21 years of fcf income to pay off all of its debts.
SMP has a Debt to FCF ratio of 17.21. This is in the lower half of the industry: SMP underperforms 76.54% of its industry peers.
SMP has a Debt/Equity ratio of 0.87. This is a neutral value indicating SMP is somewhat dependend on debt financing.
The Debt to Equity ratio of SMP (0.87) is worse than 83.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 17.21 | ||
| Altman-Z | 2 |
ROIC/WACC0.61
WACC7.98%
2.3 Liquidity
SMP has a Current Ratio of 2.11. This indicates that SMP is financially healthy and has no problem in meeting its short term obligations.
SMP has a Current ratio of 2.11. This is in the better half of the industry: SMP outperforms 76.54% of its industry peers.
SMP has a Quick Ratio of 2.11. This is a bad value and indicates that SMP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SMP (0.64) is worse than 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.53% over the past year.
SMP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.51% yearly.
The Revenue has been growing slightly by 7.77% in the past 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)8.53%
EPS 3Y-10.6%
EPS 5Y0.51%
EPS Q2Q%27.03%
Revenue 1Y (TTM)7.77%
Revenue growth 3Y4.07%
Revenue growth 5Y5.17%
Sales Q2Q%18.11%
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 15.17% yearly.
The Revenue is expected to grow by 11.29% on average over the next years. This is quite good.
EPS Next Y11.18%
EPS Next 2Y15.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.22%
Revenue Next 2Y11.29%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.41, the valuation of SMP can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SMP indicates a somewhat cheap valuation: SMP is cheaper than 72.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, SMP is valued rather cheaply.
A Price/Forward Earnings ratio of 6.66 indicates a rather cheap valuation of SMP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SMP indicates a somewhat cheap valuation: SMP is cheaper than 70.37% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SMP to the average of the S&P500 Index (21.32), we can say SMP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 6.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SMP is valued a bit more expensive than the industry average as 65.43% of the companies are valued more cheaply.
SMP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.4 | ||
| EV/EBITDA | 8.85 |
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.
SMP's earnings are expected to grow with 15.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)14.5
EPS Next 2Y15.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SMP has a Yearly Dividend Yield of 5.21%, which is a nice return.
In the last 3 months the price of SMP has falen by -23.68%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SMP's Dividend Yield is rather good when compared to the industry average which is at 4.67. SMP pays more dividend than 96.30% of the companies in the same industry.
SMP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
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 Years3
Div Non Decr Years4
5.3 Sustainability
92.15% of the earnings are spent on dividend by SMP. This is not a sustainable payout ratio.
The dividend of SMP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP92.15%
EPS Next 2Y15.17%
EPS Next 3YN/A
23.56
-0.26 (-1.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners82.49%
Inst Owner Change0.68%
Ins Owners5.06%
Ins Owner Change0.82%
Market Cap535.75M
Analysts83.33
Price Target41.31 (75.34%)
Short Float %2.54%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
Yearly Dividend1.16
Dividend Growth(5Y)4.76%
DP92.15%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.27%
Min EPS beat(2)6.36%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)16.36%
Min EPS beat(4)6.36%
Max EPS beat(4)24.96%
EPS beat(8)6
Avg EPS beat(8)3.37%
EPS beat(12)9
Avg EPS beat(12)5.29%
EPS beat(16)13
Avg EPS beat(16)17.67%
Revenue beat(2)1
Avg Revenue beat(2)6.45%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)13%
Revenue beat(4)3
Avg Revenue beat(4)5.11%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)13%
Revenue beat(8)3
Avg Revenue beat(8)0.34%
Revenue beat(12)4
Avg Revenue beat(12)0.24%
Revenue beat(16)8
Avg Revenue beat(16)3.11%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.63%
EPS NY rev (1m)2.2%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)16.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)17.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 6.66 | ||
| P/S | 0.37 | ||
| P/FCF | 16.4 | ||
| P/OCF | 6.99 | ||
| P/B | 0.87 | ||
| P/tB | 7.29 | ||
| EV/EBITDA | 8.85 |
EPS(TTM)3.18
EY13.5%
EPS(NY)3.54
Fwd EY15.01%
FCF(TTM)1.44
FCFY6.1%
OCF(TTM)3.37
OCFY14.31%
SpS64.37
BVpS27.08
TBVpS3.23
PEG (NY)0.66
PEG (5Y)14.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.52% | ||
| ROE | 4.47% | ||
| ROCE | 6.41% | ||
| ROIC | 4.85% | ||
| ROICexc | 5.01% | ||
| ROICexgc | 8.45% | ||
| OM | 6.03% | ||
| PM (TTM) | 1.88% | ||
| GM | 28.92% | ||
| FCFM | 2.23% |
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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 17.21 | ||
| Debt/EBITDA | 4.47 | ||
| Cap/Depr | 140.13% | ||
| Cap/Sales | 3.01% | ||
| Interest Coverage | 6.29 | ||
| Cash Conversion | 64.07% | ||
| Profit Quality | 118.82% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2 |
F-Score5
WACC7.98%
ROIC/WACC0.61
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)8.53%
EPS 3Y-10.6%
EPS 5Y0.51%
EPS Q2Q%27.03%
EPS Next Y11.18%
EPS Next 2Y15.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.77%
Revenue growth 3Y4.07%
Revenue growth 5Y5.17%
Sales Q2Q%18.11%
Revenue Next Year20.22%
Revenue Next 2Y11.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.36%
EBIT growth 3Y-11.96%
EBIT growth 5Y-1.88%
EBIT Next Year56.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.74%
FCF growth 3Y-18.2%
FCF growth 5Y-11.65%
OCF growth 1Y-46.84%
OCF growth 3Y-3.58%
OCF growth 5Y-0.05%