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Standard Motor Products (SMP)
:SMP
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Standard Motor Products
(NYSE:SMP)
73Outperform
Standard Motor Products (SMP) vs. S&P 500 (SPY)
Market Cap
$655.25M
Dividend Yield3.96%
Average Volume (3M)218.81K
Price to Earnings (P/E)11.5
Beta (1Y)0.67
Revenue Growth13.53%
EPS Growth-4.76%
CountryUS
Employees5,600
SectorConsumer Cyclical
Sector Strength74
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.81
Shares Outstanding21,981,024
10 Day Avg. Volume175,976
30 Day Avg. Volume218,809
Financial Highlights & Ratios
PEG Ratio1.55
Price to Book (P/B)0.99
Price to Sales (P/S)0.00
P/FCF Ratio33.04
Enterprise Value/Market Cap2.03
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit2.92
Enterprise Value/Ebitda2.28
Forecast
1Y Price Target
$42.00Price Target Upside40.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Standard Motor Products Business Overview & Revenue Model
Company DescriptionStandard Motor Products, Inc. manufactures and distributes replacement parts that are used in the maintenance, repair, and service of vehicles in the automotive aftermarket industry with a complementary focus on specialized original equipment parts for manufacturers across agriculture, heavy duty, and construction equipment industries. The company's Engine Management segment provides electronic ignition control modules, camshaft and crankshaft position sensors, ignition wires and coils, switches and relays, exhaust gas recirculation valves, pressure and temperature sensors, variable valve timing components, mass airflow and fuel pressure sensors, electronic throttle bodies, and diesel injectors and pumps; and anti-lock brake, vehicle speed, tire pressure monitoring, and park assist sensors. This segment offers its products under the Standard, Blue Streak, BWD, Intermotor, OEM, SMP Blue Streak Canada, GP Sorensen, Locksmart, Standard Motorcycle, and Blue Streak Race Wires brands. Its Temperature Control segment provides components for the temperature control systems, engine cooling systems, power window accessories, and windshield washer systems of motor vehicles under the Four Seasons, ACI, Hayden, Factory Air, and Maxair brands. Its products include air conditioning compressors and repair kits, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, actuators, hose assemblies, thermal expansion devices, heater valves, heater cores, A/C service tools and chemicals, fan assemblies, fan clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps. The company serves primarily automotive aftermarket retailers, warehouse distributors, original equipment manufacturers, and original equipment service part operations in the United States, Canada, Europe, Asia, Mexico, and other Latin American countries. The company was founded in 1919 and is headquartered in Long Island City, New York.
How the Company Makes MoneyStandard Motor Products generates revenue primarily through the sale of automotive replacement parts and components within its Engine Management and Temperature Control segments. Key revenue streams include sales to automotive aftermarket retailers, warehouse distributors, and OEMs. The company benefits from a broad distribution network and strong brand recognition, which help it maintain a competitive position in the market. SMP also engages in strategic partnerships and maintains an extensive catalog of parts to meet diverse customer needs, further contributing to its revenue.
Standard Motor Products Financial Statement Overview
Summary
Standard Motor Products shows solid revenue growth, efficient cost management, and stable operational performance. The balance sheet is moderately leveraged, allowing financial flexibility. Cash flow generation is strong, but there's room to enhance free cash flow conversion from net income. Overall, the company is on a stable financial trajectory with opportunities to boost profitability and shareholder returns.Income Statement
Standard Motor Products has demonstrated robust revenue growth over the past years, with a positive trend continuing into the TTM. Gross profit margin stands at 29.52%, reflecting efficient cost management. The company shows a net profit margin of 2.02%, and a solid EBIT margin of 6.89%. There is room for improvement in net profitability, but the consistent EBITDA margin of 8.65% indicates stable operational performance.75
Positive
Balance Sheet
The company's balance sheet reveals a moderate debt-to-equity ratio of 1.17, suggesting a balanced leverage approach. Return on Equity (ROE) at 4.90% is modest, pointing to potential areas for enhancing shareholder value. The equity ratio of 33.12% indicates a healthy capitalization structure, although there is potential to increase equity to further solidify financial stability.70
Positive
Cash Flow
Free cash flow growth has been inconsistent, but the recent TTM shows positive free cash flow. The operating cash flow to net income ratio is 1.99, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio at 0.61 suggests room for improvement in translating earnings into free cash flow.68
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.55B | 1.46B | 1.36B | 1.37B | 1.30B | 1.13B | Gross Profit |
| 456.32M | 423.32M | 388.83M | 382.54M | 376.93M | 336.65M | EBIT |
| 106.44M | 80.62M | 92.68M | 104.14M | 129.00M | 108.89M | EBITDA |
| 133.73M | 116.39M | 121.65M | 137.25M | 159.74M | 136.03M | Net Income Common Stockholders |
| 31.24M | 27.50M | 34.15M | 55.35M | 90.89M | 80.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 44.43M | 44.43M | 32.53M | 21.15M | 21.75M | 19.49M | Total Assets |
| 1.81B | 1.81B | 1.29B | 1.25B | 1.20B | 956.54M | Total Debt |
| 660.53M | 649.73M | 245.19M | 280.33M | 159.64M | 32.68M | Net Debt |
| 616.10M | 605.30M | 212.66M | 259.18M | 137.89M | 13.19M | Total Liabilities |
| 1.18B | 1.18B | 642.17M | 633.89M | 585.33M | 406.30M | Stockholders Equity |
| 615.75M | 615.75M | 635.06M | 610.02M | 601.58M | 550.24M |
| Cash Flow | Free Cash Flow | ||||
| 19.13M | 32.67M | 115.63M | -53.49M | 59.69M | 80.08M | Operating Cash Flow |
| 62.19M | 76.69M | 144.26M | -27.53M | 85.56M | 97.90M | Investing Cash Flow |
| -414.82M | -418.68M | -25.70M | -27.82M | -151.25M | -17.80M | Financing Cash Flow |
| 371.68M | 349.55M | -109.61M | 55.50M | 69.01M | -71.52M |
Standard Motor Products Technical Analysis
Positive
29.81
Price Trends
25.54
Positive
27.82
Positive
29.54
Positive
Market Momentum
1.39
Negative
72.53
Negative
68.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMP, the sentiment is Positive. The current price of 29.81 is above the 20-day moving average (MA) of 26.87, above the 50-day MA of 25.54, and above the 200-day MA of 29.54, indicating a bullish trend. The MACD of 1.39 indicates Negative momentum. The RSI at 72.53 is Negative, neither overbought nor oversold. The STOCH value of 68.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMP.
Standard Motor Products Risk Analysis
Standard Motor Products disclosed 24 risk factors in its most recent earnings report. Standard Motor Products reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Standard Motor Products Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $670.29M | 10.70 | 26.52% | 4.08% | 1.14% | 127.04% | |
73 Outperform | $655.25M | 11.52 | 9.00% | 3.96% | 13.53% | -4.76% | |
73 Outperform | $531.37M | 9.85 | 14.19% | 1.66% | -7.18% | -17.48% | |
63 Neutral | $213.07M | ― | -6.40% | ― | 4.26% | 64.64% | |
61 Neutral | $6.98B | 11.35 | 2.88% | 3.90% | 2.65% | -21.84% | |
55 Neutral | $406.71M | 22.99 | 3.02% | 8.25% | -5.25% | -42.25% | |
39 Underperform | $15.62M | ― | -80.07% | ― | -3.63% | 36.19% |
* Consumer Cyclical Sector Average
Performance Comparison
SMP
Standard Motor Products
29.59
-0.73
-2.41%
PLOW
Douglas Dynamics
28.88
4.37
17.83%
MLR
Miller Industries
46.67
-12.32
-20.88%
MNRO
Monro Muffler
13.58
-11.99
-46.89%
MPAA
Motorcar Parts Of America
10.88
5.93
119.80%
SUP
Superior Industries International
0.53
-3.16
-85.64%
Standard Motor Products Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 23.64%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant revenue growth and strong performance in key segments, including the successful integration of Nissens. However, challenges remain, particularly in the Engineered Solutions segment and the uncertainty surrounding tariffs.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Overall sales increased by nearly 25%, with a significant contribution from the recent Nissens acquisition. Excluding Nissens, sales still grew by nearly 5%.
Record Sales in Vehicle and Temperature Control Segments
Vehicle Control sales increased by 3.7%, and Temperature Control sales grew by 24% year-over-year, setting all-time records for first quarter sales.
Significant EBITDA Improvement
The company reported a $20 million increase in EBITDA and a 350 basis points lift in EBITDA margin.
Successful Integration of Nissens
Nissens contributed $66.2 million in net sales and $11.5 million in adjusted EBITDA, with a 17.3% EBITDA margin, exceeding expectations.
Geographic Diversification
The U.S. now represents about 70% of sales, down from 90%, due to Nissens and Engineered Solutions segments, providing better global market exposure.
Negative Updates
Decline in Engineered Solutions Segment
Engineered Solutions segment sales were down 11.2% due to slower production schedules at customers, despite an improvement in profit margins.
Increased Net Debt and Leverage Ratio
Net debt rose to $600.3 million, with a leverage ratio of 3.75 times EBITDA, though adjusted for Nissens, leverage would be less than 3.5 times.
Uncertain Tariff Impact
The potential impact of tariffs on the business environment is uncertain, with ongoing negotiations and mitigation efforts required.
Company Guidance
During the Standard Motor Products First Quarter 2025 Earnings Call, the company reported a strong performance, with consolidated net sales increasing by 24.7% compared to the previous year. The Vehicle Control segment saw a 3.7% rise in net sales, while the Temperature Control segment experienced a 24.1% increase, driven by robust pre-season ordering. The newly acquired Nissens Automotive contributed $66.2 million in net sales and $11.5 million in adjusted EBITDA, achieving a 17.3% margin. Despite a 11.2% decline in sales for the Engineered Solutions segment, the company saw an improved product mix, boosting segment profits. Overall, the adjusted EBITDA margin rose to 10.4% of net sales, with a notable 80% increase in non-GAAP diluted earnings per share. The company maintained its full-year guidance, expecting mid-teens percentage growth in net sales and an adjusted EBITDA margin between 10% and 11%, despite uncertainties related to new tariff actions.Standard Motor Products Corporate Events
Executive/Board ChangesShareholder Meetings
Standard Motor Products Approves 2025 Incentive Plan
Neutral
May 15, 2025
On May 15, 2025, Standard Motor Products, Inc. held its Annual Meeting of Shareholders, where the 2025 Omnibus Incentive Plan was approved. This plan, effective immediately, allows for various stock and cash-based awards, with a maximum of 1,050,000 shares available for issuance. Additionally, the shareholders elected eight directors, ratified KPMG LLP as the independent auditor for the fiscal year ending December 31, 2025, and approved a non-binding resolution on executive compensation.
The most recent analyst rating on (SMP) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Standard Motor Products stock, see the SMP Stock Forecast page.
Spark’s Take on SMP Stock
According to Spark, TipRanks’ AI Analyst, SMP is a Outperform.
Standard Motor Products presents a stable financial outlook with robust revenue growth and efficient cost management. The stock’s valuation appears attractive, with low P/E and high dividend yield. Recent earnings call data supports a positive outlook, though technical indicators suggest caution due to potential overbought conditions.
To see Spark’s full report on SMP stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.