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Motorcar Parts Of America
(NASDAQ:MPAA)
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Rating:64Neutral
Price Target:
$15.50
▲(32.93% Upside)
Action:Reiterated
Date:07/03/26
The score is driven by improving fundamentals and a favorable outlook, offset by cash-flow volatility. Positive FY27 guidance, margin expansion efforts, and a technically strong uptrend support the rating, while inconsistent historical profitability and uncertain cash conversion/working-capital needs remain the primary constraints; valuation appears reasonable but not clearly cheap at a 22.5 P/E.
Positive Factors
Improved leverage and balance-sheet resilience
Meaningful deleveraging to a net bank debt/EBITDA near 0.9 and lower debt-to-equity materially reduces interest and refinancing risk, giving management flexibility to invest in new-business ramps, complete the Centric IP acquisition, and pursue buybacks or opportunistic M&A without overburdening cash flow.
Negative Factors
Volatile and weakened cash generation
Operating cash flow volatility and a sharp year-over-year free cash flow decline undermine confidence in sustainable internal funding. This weak cash conversion makes it harder to finance inventory ramps, fund capex or acquisitions, and could force reliance on debt or equity during growth phases, straining returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage and balance-sheet resilience
Meaningful deleveraging to a net bank debt/EBITDA near 0.9 and lower debt-to-equity materially reduces interest and refinancing risk, giving management flexibility to invest in new-business ramps, complete the Centric IP acquisition, and pursue buybacks or opportunistic M&A without overburdening cash flow.
Read all positive factors
Motorcar Parts Of America Key Performance Indicators (KPIs)
Any
Revenue by Product Line
Shows how revenue is split across the company’s product lines, revealing which parts of the business drive sales and profits. Heavy reliance on a single product or line raises concentration risk and makes results sensitive to vehicle production cycles, supply disruptions, or pricing pressure, while growth or a shift toward higher‑margin lines indicates stronger earnings potential. For Motorcar Parts Of America, tracking OEM vs. aftermarket exposure and replacement‑frequency products helps assess sustainability of sales and margins.
Shows how revenue is split across the company’s product lines, revealing which parts of the business drive sales and profits. Heavy reliance on a single product or line raises concentration risk and makes results sensitive to vehicle production cycles, supply disruptions, or pricing pressure, while growth or a shift toward higher‑margin lines indicates stronger earnings potential. For Motorcar Parts Of America, tracking OEM vs. aftermarket exposure and replacement‑frequency products helps assess sustainability of sales and margins.
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The Fly
The FlyMotorcar Parts Of America (MPAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$277.63M
Dividend YieldN/A
Average Volume (3M)109.25K
Price to Earnings (P/E)22.5
Beta (1Y)1.56
Revenue Growth4.28%
EPS GrowthN/A
CountryUS
Employees5,900
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.65
Shares Outstanding18,924,818
10 Day Avg. Volume237,193
30 Day Avg. Volume109,253
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)0.80
Price to Sales (P/S)0.27
P/FCF Ratio9.34
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit2.92
Enterprise Value/Ebitda6.47
Forecast
1Y Price Target
$19.00Price Target Upside62.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.53
Revenue Forecast (FY)$804.20M
Motorcar Parts Of America Business Overview & Revenue Model
Company Description
Motorcar Parts of America, Inc. (MPAA) is a company dedicated to the production, reconditioning, and supply of essential aftermarket components for a diverse range of applications, including heavy-duty vehicles, industrial machinery, marine vessel...
How the Company Makes Money
MPAA makes money primarily by selling automotive replacement parts into the North American automotive aftermarket, generating revenue when its customers (e.g., retailers, warehouse distributors, and other aftermarket channels) purchase products fo...
Motorcar Parts Of America Earnings Call Summary
Earnings Call Date:Jun 08, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial picture: meaningful revenue and profit growth, a return to net profitability, strong adjusted gross margins, healthy liquidity, low leverage and a constructive FY27 guidance that includes significant additional revenue opportunities. The main negatives are short-term working capital pressure (large A/R and inventory ramp), some one-time/noncash distortions to reported margins, and timing uncertainty related to customer inventory liquidation and macro variability. Overall, management outlines credible margin expansion initiatives and clear paths to scale new business, and the positives materially outweigh the manageable near-term challenges.Positive Updates
Revenue and Profitability Turnaround
Net sales increased 9.9% in the fiscal fourth quarter and 4.3% for the full year. The company swung to positive net income: $9.7M in the quarter (vs. a $0.7M loss a year ago) and $12.4M for the year (vs. a $19.5M loss a year ago). Operating income increased 29.4% for the quarter and 64.9% for the year.
Negative Updates
Quarteral Working Capital Drain and A/R Spike
The company used $4.5M of cash from operations in the quarter driven primarily by a $32.5M increase in accounts receivable due to strong late-quarter sales. Working capital use for the year was $37.8M, offsetting $57M of cash generated before working capital.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue and Profitability Turnaround
Net sales increased 9.9% in the fiscal fourth quarter and 4.3% for the full year. The company swung to positive net income: $9.7M in the quarter (vs. a $0.7M loss a year ago) and $12.4M for the year (vs. a $19.5M loss a year ago). Operating income increased 29.4% for the quarter and 64.9% for the year.
Read all positive updates
Company Guidance
Guidance for fiscal 2027 calls for net sales of $780 million to $800 million, representing year‑over‑year growth of 7.5% to 10.2% (this excludes certain nonrecurring items and tariff pass‑throughs), with new business commitments expected to ramp in the second half of the year; the company also says it expects to add more than $100 million of additional annualized net sales by the end of FY27 (not included in the guidance) and targets annualized net sales in excess of $900 million by year‑end. Operating income is guided to $86 million–$91 million (implying 12.3%–18.8% year‑over‑year growth), depreciation & amortization of roughly $9 million, and EBITDA of $95 million–$100 million; the estimates reflect tariffs enacted as of June 8, 2026 and exclude certain noncash and one‑time items.Motorcar Parts Of America Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
71
Positive
Cash Flow
39
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 789.81M | 757.35M | 717.68M | 683.07M | 650.31M |
| Gross Profit | 159.90M | 153.83M | 132.55M | 113.96M | 117.86M |
| EBITDA | 66.65M | 50.26M | 58.59M | 48.89M | 41.59M |
| Net Income | 12.39M | -19.47M | -49.24M | -4.21M | 7.36M |
Balance Sheet | |||||
| Total Assets | 1.02B | 957.64M | 1.01B | 1.03B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 16.68M | 11.31M | 15.81M | 13.61M | 25.22M |
| Total Debt | 199.63M | 201.28M | 239.34M | 277.22M | 262.71M |
| Total Liabilities | 753.43M | 699.94M | 726.89M | 708.09M | 700.43M |
| Stockholders Equity | 266.01M | 257.70M | 285.11M | 320.48M | 315.26M |
Cash Flow | |||||
| Free Cash Flow | 22.85M | 40.90M | 38.17M | -25.95M | -52.41M |
| Operating Cash Flow | 19.16M | 45.48M | 39.17M | -21.75M | -44.86M |
| Investing Cash Flow | -3.59M | -4.47M | -479.00K | -4.19M | -7.94M |
| Financing Cash Flow | -10.98M | -44.66M | -36.44M | 14.31M | 60.22M |
Motorcar Parts Of America Technical Analysis
Positive
11.66
Price Trends
12.46
Positive
11.57
Positive
12.92
Positive
Market Momentum
0.85
Positive
58.16
Neutral
43.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPAA, the sentiment is Positive. The current price of 11.66 is below the 20-day moving average (MA) of 14.43, below the 50-day MA of 12.46, and below the 200-day MA of 12.92, indicating a bullish trend. The MACD of 0.85 indicates Positive momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 43.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MPAA.
Motorcar Parts Of America Risk Analysis
Motorcar Parts Of America disclosed 31 risk factors in its most recent earnings report. Motorcar Parts Of America reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Motorcar Parts Of America Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.55B | 12.97 | 10.41% | 2.63% | 2.86% | 17.30% | |
72 Outperform | $325.28M | 12.66 | 10.75% | ― | 4.22% | 23.13% | |
64 Neutral | $277.63M | 22.51 | 4.75% | ― | 4.28% | ― | |
63 Neutral | $134.86M | 3.15 | 11.39% | ― | 17.64% | 42.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.04B | 45.56 | 3.17% | ― | 5.81% | -53.66% | |
55 Neutral | $195.67M | -1.70 | -53.45% | ― | -9.34% | -539.67% |
* Consumer Cyclical Sector Average
MPAA
Motorcar Parts Of America
14.67
2.40
19.56%
CAAS
China Automotive Systems
4.47
0.33
7.97%
LEA
Lear
130.85
30.77
30.74%
SRI
Stoneridge
6.93
-0.86
-11.04%
STRT
Strattec Security
77.84
11.30
16.98%
THRM
Gentherm
33.88
4.09
13.73%
Motorcar Parts Of America Corporate Events
Business Operations and StrategyExecutive/Board Changes
Motorcar Parts Of America Extends CEO Employment Agreement
Positive
Jul 2, 2026
On June 26, 2026, Motorcar Parts of America, Inc. amended the long-standing employment agreement of Chairman, President and Chief Executive Officer Selwyn Joffe, extending its term from July 1, 2027 to July 1, 2029. The amendment, approved by the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.