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Motorcar Parts Of America (MPAA) AI Stock Analysis
Motorcar Parts Of America
(NASDAQ:MPAA)
MPAA scores below average primarily due to inconsistent profitability and a recent deterioration in TTM cash generation, despite improving leverage. Technicals also reflect a clear downtrend with weak momentum. Offsetting these negatives, the earnings call provides support via reaffirmed growth and profit guidance plus stated upside potential and solid liquidity/leverage, but execution and working-capital risks remain key near-term watch items.
Motorcar Parts Of America Key Performance Indicators (KPIs)
Revenue by Product LineShows 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.
Brake Related Products are the clear growth engine—accelerating steadily and spiking most recently, aligning with management’s emphasis on brake wins and underpinning FY27 guidance—while Rotating Electrical remains a stable, low‑growth backbone. Wheel Hub revenue’s collapse to zero by Mar‑2026 is a material shift (lost product/customer or deliberate exit) that concentrates revenue risk in brakes and rotating lines; Other remains immaterial. Monitor shipment cadence, customer inventory drawdowns and A/R trends closely, since guidance depends on a successful second‑half ramp and timely cash conversion.
The FlyMotorcar Parts Of America (MPAA) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $192.27M
- Dividend Yield
- ―
- Average Volume (3M)
- 112.87K
- Price to Earnings (P/E)
- -46.5
- Beta (1Y)
- 1.48
- Revenue Growth
- -0.82%
- EPS Growth
- -353.36%
- Country
- US
- Employees
- 5,600
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Auto - Parts
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 vessels,...
How the Company Makes Money
MPAA makes money by selling automotive replacement parts (and related programs/services tied to those parts) through two primary channels: (1) the automotive aftermarket and (2) select OEM relationships. The largest driver is generally the aftermarke...
Motorcar Parts Of America Earnings Call Summary
The call presents a cautiously optimistic outlook. Management emphasized strategic growth drivers (Centric brake brand acquisition, heavy duty relocation to Mexico, expanding SKU coverage) and reaffirmed fiscal 2027 guidance with meaningful upside potential (> $100M additional annualized sales and > $900M expected by year‑end). Liquidity and leverage metrics are healthy (cash + availability ~$112M, net bank debt/EBITDA ~1.26x). Near‑term challenges include Q1 timing‑related lower sales, inventory ramp leading to $11.3M operating cash use, FX headwinds (~$3.5M), and the presence of noncash/one‑time items that depressed reported gross margin (16.2% vs 18% prior year). On balance, the strategic initiatives, guidance reaffirmation, low leverage, and sizable upside potential outweigh the transitory execution and timing headwinds.
Q1-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Motorcar Parts reaffirmed fiscal 2027 guidance (year ending March 31, 2027) calling for net sales of $780 million to $800 million (up 7.5% to 10.2% year‑over‑year), operating income of $86 million to $91 million (12.3% to 18.8% YoY growth), depreciation & amortization of roughly $9 million, and EBITDA of $95 million to $100 million; guidance assumes new business commitments that are expected to ramp in the second half of the year, excludes certain nonrecurring items (including tariff pass‑through reductions and nonrecurring core revenue), and does not include management’s expectation to add more than $100 million of additional annualized net sales by the end of fiscal 2027 (which would raise annualized net sales to more than $900 million).
Motorcar Parts Of America Financial Statement Overview
Summary
Overall fundamentals are mixed. Revenue improved over 2022–2025 but slipped in the TTM period (-2.6%), profitability has been inconsistent with net income swinging between losses and a brief profit, and the latest TTM turned slightly negative on operating cash flow and free cash flow. The balance sheet is comparatively stronger with materially improving leverage (debt-to-equity down to ~0.43 TTM), but volatile/negative ROE underscores unstable earnings quality.
Income Statement
46NeutralBalance Sheet
58NeutralCash Flow
39Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 769.46M | 789.81M | 757.35M | 717.68M | 683.07M | 650.31M |
| Gross Profit | 153.16M | 159.90M | 153.83M | 132.55M | 113.96M | 117.86M |
| EBITDA | 56.26M | 76.75M | 50.26M | 58.59M | 48.89M | 41.59M |
| Net Income | -4.07M | 12.39M | -19.47M | -49.24M | -4.21M | 7.36M |
Balance Sheet | ||||||
| Total Assets | 1.01B | 1.02B | 957.64M | 1.01B | 1.03B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 21.40M | 16.68M | 11.31M | 15.81M | 13.61M | 25.22M |
| Total Debt | 228.70M | 199.63M | 201.28M | 239.34M | 277.22M | 262.71M |
| Total Liabilities | 757.03M | 753.43M | 699.94M | 726.89M | 708.09M | 700.43M |
| Stockholders Equity | 252.99M | 266.01M | 257.70M | 285.11M | 320.48M | 315.26M |
Cash Flow | ||||||
| Free Cash Flow | -3.92M | 22.85M | 40.90M | 38.17M | -25.95M | -52.41M |
| Operating Cash Flow | -2.17M | 19.16M | 45.48M | 39.17M | -21.75M | -44.86M |
| Investing Cash Flow | -7.95M | -3.59M | -4.47M | -479.00K | -4.19M | -7.94M |
| Financing Cash Flow | 16.62M | -10.98M | -44.66M | -36.44M | 14.31M | 60.22M |
Motorcar Parts Of America Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPAA, the sentiment is Negative. The current price of 10.15 is below the 20-day moving average (MA) of 10.30, below the 50-day MA of 10.69, and below the 200-day MA of 11.76, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 43.29 is Neutral, neither overbought nor oversold. The STOCH value of 43.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
0 New RisksMotorcar Parts Of America Peers Comparison
Overall Rating
CAAS73Outperform
LEA69Neutral
STRT65Neutral- MPAA48Neutral
THRM45Neutral
SRI44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CAAS | 73Outperform | $129.43M | 2.16 | 13.77% | ― | 17.64% | 42.96% |
| LEA | 69Neutral | $5.72B | 9.94 | 11.52% | 2.70% | 3.52% | 40.59% |
| STRT | 65Neutral | $258.46M | 14.42 | 7.09% | ― | -0.73% | -28.01% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| MPAA | 48Neutral | $200.31M | -46.50 | -1.57% | ― | -0.82% | -353.36% |
| THRM | 45Neutral | $1.63B | 99.53 | 1.25% | ― | 8.79% | -70.33% |
| SRI | 44Neutral | $163.44M | -1.09 | -80.52% | ― | -19.58% | -280.26% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| MPAA | Motorcar Parts Of America | 10.15 | -7.22 | -41.57% | |
| CAAS | China Automotive | 4.13 | -0.02 | -0.48% | |
| LEA | Lear Corp. | 114.10 | 6.68 | 6.22% | |
| SRI | Stoneridge | 4.78 | -1.39 | -22.53% | |
| STRT | Strattec Security | 60.43 | -6.68 | -9.95% | |
| THRM | Gentherm Inc | 29.63 | -4.31 | -12.70% |
Motorcar Parts Of America Corporate Events
Shareholders Back Governance, Auditor and Incentive Plan Changes
PositiveMotorcar Parts of America held its Annual Meeting of Shareholders on September 10, 2026, where investors voted on director elections, auditor ratification, executive compensation and an amendment to the company’s incentive award plan. All direc...
Motorcar Parts Of America Extends CEO Employment Agreement
PositiveOn 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 Hum...
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.
Date of analysis: Sep 16, 2026