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 81 industry peers in the Automobile Components industry. SMP may be in some trouble as it scores bad on both profitability and health. SMP has a decent growth rate and is not valued too expensively. SMP also has an excellent dividend rating.
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.
SMP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SMP's Return On Assets of 1.62% is on the low side compared to the rest of the industry. SMP is outperformed by 69.14% of its industry peers.
SMP has a Return On Equity of 4.90%. This is in the lower half of the industry: SMP underperforms 69.14% of its industry peers.
The Return On Invested Capital of SMP (5.04%) is worse than 76.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SMP is below the industry average of 9.04%.
| 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
With a Profit Margin value of 2.02%, SMP is not doing good in the industry: 69.14% of the companies in the same industry are doing better.
SMP's Profit Margin has declined in the last couple of years.
The Operating Margin of SMP (6.42%) is worse than 65.43% of its industry peers.
In the last couple of years the Operating Margin of SMP has declined.
Looking at the Gross Margin, with a value of 29.66%, SMP belongs to the top of the industry, outperforming 86.42% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SMP is destroying value.
SMP has less shares outstanding than it did 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 2.07 indicates that SMP is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.07, SMP is doing worse than 72.84% of the companies in the same industry.
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.
SMP's Debt to FCF ratio of 34.02 is on the low side compared to the rest of the industry. SMP is outperformed by 75.31% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that SMP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, SMP is doing worse than 82.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 34.02 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.59
WACC8.58%
2.3 Liquidity
A Current Ratio of 2.32 indicates that SMP has no problem at all paying its short term obligations.
The Current ratio of SMP (2.32) is better than 77.78% 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.
The Quick ratio of SMP (0.82) is worse than 87.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.80% 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.
SMP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.53%.
Measured over the past years, SMP shows a small growth in Revenue. The Revenue has been growing by 5.17% on average per year.
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
The Earnings Per Share is expected to grow by 15.50% on average over the next years. This is quite good.
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
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.
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 8.56 indicates a reasonable valuation of SMP.
Based on the Price/Earnings ratio, SMP is valued a bit cheaper than 74.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of SMP to the average of the S&P500 Index (26.25), we can say SMP is valued rather cheaply.
A Price/Forward Earnings ratio of 7.14 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 69.14% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.15. SMP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.56 | ||
| Fwd PE | 7.14 |
4.2 Price Multiples
SMP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SMP is more expensive than 65.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SMP indicates a slightly more expensive valuation: SMP is more expensive than 74.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.82 | ||
| EV/EBITDA | 9.48 |
4.3 Compensation for Growth
SMP'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 SMP's earnings are expected to grow with 15.50% in the coming years.
PEG (NY)0.61
PEG (5Y)16.75
EPS Next 2Y15.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, SMP is a good candidate for dividend investing.
SMP's Dividend Yield is rather good when compared to the industry average which is at 4.14. SMP pays more dividend than 96.30% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SMP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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.
The dividend of SMP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP82.34%
EPS Next 2Y15.5%
EPS Next 3YN/A
30.3
+0.09 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners82.49%
Inst Owner Change0.18%
Ins Owners5.06%
Ins Owner Change0.63%
Market Cap665.99M
Analysts83.33
Price Target41.31 (36.34%)
Short Float %3.94%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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)-17.82%
EPS NQ rev (3m)-9%
EPS NY rev (1m)2.56%
EPS NY rev (3m)4.82%
Revenue NQ rev (1m)-2.13%
Revenue NQ rev (3m)13.31%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)18.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.56 | ||
| Fwd PE | 7.14 | ||
| P/S | 0.43 | ||
| P/FCF | 34.82 | ||
| P/OCF | 10.71 | ||
| P/B | 1.04 | ||
| P/tB | 7.71 | ||
| EV/EBITDA | 9.48 |
EPS(TTM)3.54
EY11.68%
EPS(NY)4.24
Fwd EY14%
FCF(TTM)0.87
FCFY2.87%
OCF(TTM)2.83
OCFY9.34%
SpS70.33
BVpS29.02
TBVpS3.93
PEG (NY)0.61
PEG (5Y)16.75
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 | 2.07 |
F-Score5
WACC8.58%
ROIC/WACC0.59
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%