STANDARD MOTOR PRODS (SMP) Stock Fundamental Analysis
NYSE:SMP - New York Stock Exchange, Inc. - US8536661056 - Common Stock - Currency: USD
Taking everything into account, SMP scores 4 out of 10 in our fundamental rating. SMP was compared to 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 correct valuation and a medium growth rate. 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.
SMP had positive earnings in each of the past 5 years.
Of the past 5 years SMP 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SMP (1.52%) is worse than 70.37% of its industry peers.
SMP has a worse Return On Equity (4.47%) than 67.90% of its industry peers.
With a Return On Invested Capital value of 4.85%, SMP is not doing good in the industry: 76.54% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SMP is below the industry average of 8.97%.
| 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
Looking at the Profit Margin, with a value of 1.88%, SMP is doing worse than 69.14% of the companies in the same industry.
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.
SMP's Operating Margin has declined in the last couple of years.
SMP has a better Gross Margin (28.92%) 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SMP is destroying value.
Compared to 1 year ago, SMP has less shares outstanding
The number of shares outstanding for SMP has been reduced compared to 5 years ago.
SMP has a worse debt/assets ratio than last year.
2.2 Solvency
SMP has an Altman-Z score of 2.06. This is not the best score and indicates that SMP is in the grey zone with still only limited risk for bankruptcy at the moment.
SMP's Altman-Z score of 2.06 is on the low side compared to the rest of the industry. SMP is outperformed by 71.60% 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.
With a Debt to FCF ratio value of 17.21, SMP is not doing good in the industry: 76.54% of the companies in the same industry are doing better.
SMP has a Debt/Equity ratio of 0.87. This is a neutral value indicating SMP is somewhat dependend on debt financing.
SMP has a Debt to Equity ratio of 0.87. This is amonst the worse of the industry: SMP underperforms 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 17.21 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.58
WACC8.38%
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's Current ratio of 2.11 is fine compared to the rest of the industry. SMP outperforms 75.31% of its industry peers.
A Quick Ratio of 0.64 indicates that SMP may have some problems paying its short term obligations.
With a Quick ratio value of 0.64, SMP is not doing good in the industry: 92.59% of the companies in the same industry are doing better.
| 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 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 a small growth in Revenue. In the last year, the Revenue has grown by 7.77%.
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)7.77%
Revenue growth 3Y4.07%
Revenue growth 5Y5.17%
Sales Q2Q%24.74%
3.2 Future
Based on estimates for the next years, SMP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.17% on average per year.
SMP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.29% yearly.
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.
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
The Price/Earnings ratio is 8.12, which indicates a very decent valuation of SMP.
Based on the Price/Earnings ratio, SMP is valued a bit cheaper than 72.84% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.21, SMP is valued rather cheaply.
SMP is valuated cheaply with a Price/Forward Earnings ratio of 6.82.
Based on the Price/Forward Earnings ratio, SMP is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
SMP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 6.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SMP is valued a bit more expensive than the industry average as 67.90% of the companies are valued more cheaply.
61.73% 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 | 20.01 | ||
| EV/EBITDA | 9.76 |
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 15.17% in the coming years.
PEG (NY)0.73
PEG (5Y)15.9
EPS Next 2Y15.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.33%, SMP is a good candidate for dividend investing.
SMP's Dividend Yield is rather good when compared to the industry average which is at 4.34. 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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
28.75
+0.14 (+0.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners82.49%
Inst Owner Change0.87%
Ins Owners5.06%
Ins Owner Change-0.99%
Market Cap653.77M
Analysts83.33
Price Target41.31 (43.69%)
Short Float %3.56%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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)-24.31%
EPS NY rev (1m)0%
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 | 8.12 | ||
| Fwd PE | 6.82 | ||
| P/S | 0.45 | ||
| P/FCF | 20.01 | ||
| P/OCF | 8.52 | ||
| P/B | 1.06 | ||
| P/tB | 8.89 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)3.54
EY12.31%
EPS(NY)4.22
Fwd EY14.67%
FCF(TTM)1.44
FCFY5%
OCF(TTM)3.37
OCFY11.73%
SpS64.37
BVpS27.08
TBVpS3.23
PEG (NY)0.73
PEG (5Y)15.9
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 | 2.06 |
F-Score5
WACC8.38%
ROIC/WACC0.58
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 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%24.74%
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%