MOTORCAR PARTS OF AMERICA IN (MPAA) Stock Fundamental Analysis
NASDAQ:MPAA - Nasdaq - US6200711009 - Common Stock - Currency: USD
MPAA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. Both the profitability and financial health of MPAA have multiple concerns. MPAA may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year MPAA was profitable.
MPAA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MPAA reported negative net income in multiple years.
In multiple years MPAA reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.83%, MPAA is doing worse than 79.01% of the companies in the same industry.
MPAA's Return On Equity of -6.63% is on the low side compared to the rest of the industry. MPAA is outperformed by 80.25% of its industry peers.
MPAA has a Return On Invested Capital of 6.09%. This is in the lower half of the industry: MPAA underperforms 66.67% of its industry peers.
MPAA had an Average Return On Invested Capital over the past 3 years of 3.45%. This is significantly below the industry average of 8.88%.
The 3 year average ROIC (3.45%) for MPAA is below the current ROIC(6.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.83% | ||
| ROE | -6.63% | ||
| ROIC | 6.09% |
ROA(3y)-1.52%
ROA(5y)-0.59%
ROE(3y)-5.41%
ROE(5y)-2.35%
ROIC(3y)3.45%
ROIC(5y)3.76%
1.3 Margins
With a Operating Margin value of 7.12%, MPAA is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
MPAA's Operating Margin has improved in the last couple of years.
The Gross Margin of MPAA (19.92%) is worse than 71.60% of its industry peers.
MPAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.12% | ||
| PM (TTM) | N/A | ||
| GM | 19.92% |
OM growth 3Y2.34%
OM growth 5Y10.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.02%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MPAA is destroying value.
The number of shares outstanding for MPAA has been increased compared to 1 year ago.
The number of shares outstanding for MPAA has been increased compared to 5 years ago.
Compared to 1 year ago, MPAA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that MPAA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MPAA (1.36) is worse than 87.65% of its industry peers.
The Debt to FCF ratio of MPAA is 5.23, which is a neutral value as it means it would take MPAA, 5.23 years of fcf income to pay off all of its debts.
MPAA has a Debt to FCF ratio of 5.23. This is in the lower half of the industry: MPAA underperforms 64.20% of its industry peers.
MPAA has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
MPAA's Debt to Equity ratio of 0.49 is on the low side compared to the rest of the industry. MPAA is outperformed by 72.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 5.23 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.33
WACC18.38%
2.3 Liquidity
A Current Ratio of 1.45 indicates that MPAA should not have too much problems paying its short term obligations.
MPAA has a worse Current ratio (1.45) than 82.72% of its industry peers.
A Quick Ratio of 0.39 indicates that MPAA may have some problems paying its short term obligations.
MPAA has a worse Quick ratio (0.39) than 96.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
MPAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 125.00%, which is quite impressive.
The earnings per share for MPAA have been decreasing by -26.54% on average. This is quite bad
MPAA shows a small growth in Revenue. In the last year, the Revenue has grown by 4.27%.
Measured over the past years, MPAA shows a quite strong growth in Revenue. The Revenue has been growing by 8.71% on average per year.
EPS 1Y (TTM)125%
EPS 3Y-41.62%
EPS 5Y-26.54%
EPS Q2Q%229.63%
Revenue 1Y (TTM)4.27%
Revenue growth 3Y9.89%
Revenue growth 5Y8.71%
Sales Q2Q%8.33%
3.2 Future
Based on estimates for the next years, MPAA will show a very strong growth in Earnings Per Share. The EPS will grow by 109.36% on average per year.
The Revenue is expected to grow by 4.91% on average over the next years.
EPS Next Y46.11%
EPS Next 2Y109.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.88%
Revenue Next 2Y4.91%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.84, MPAA is valued on the expensive side.
65.43% of the companies in the same industry are cheaper than MPAA, based on the Price/Earnings ratio.
MPAA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 5.51, the valuation of MPAA can be described as very cheap.
Based on the Price/Forward Earnings ratio, MPAA is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MPAA to the average of the S&P500 Index (21.32), we can say MPAA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.84 | ||
| Fwd PE | 5.51 |
4.2 Price Multiples
MPAA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MPAA is cheaper than 83.95% of the companies in the same industry.
71.60% of the companies in the same industry are more expensive than MPAA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.04 | ||
| EV/EBITDA | 3.04 |
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 MPAA's earnings are expected to grow with 109.36% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y109.36%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MPAA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.93
-0.02 (-0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners80.5%
Inst Owner Change0%
Ins Owners5.67%
Ins Owner Change5.84%
Market Cap174.85M
Analysts82.86
Price Target14.28 (59.91%)
Short Float %2.87%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)24.32%
Min EPS beat(2)-20.2%
Max EPS beat(2)68.85%
EPS beat(4)1
Avg EPS beat(4)-135%
Min EPS beat(4)-562.18%
Max EPS beat(4)68.85%
EPS beat(8)2
Avg EPS beat(8)-121.95%
EPS beat(12)3
Avg EPS beat(12)-95.61%
EPS beat(16)7
Avg EPS beat(16)-59.82%
Revenue beat(2)1
Avg Revenue beat(2)0.75%
Min Revenue beat(2)-0.19%
Max Revenue beat(2)1.69%
Revenue beat(4)1
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-6.46%
Max Revenue beat(4)1.69%
Revenue beat(8)3
Avg Revenue beat(8)-2.48%
Revenue beat(12)5
Avg Revenue beat(12)-1.67%
Revenue beat(16)9
Avg Revenue beat(16)2.64%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-31.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.84 | ||
| Fwd PE | 5.51 | ||
| P/S | 0.23 | ||
| P/FCF | 7.04 | ||
| P/OCF | 6.45 | ||
| P/B | 0.67 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 3.04 |
EPS(TTM)0.45
EY5.04%
EPS(NY)1.62
Fwd EY18.16%
FCF(TTM)1.27
FCFY14.21%
OCF(TTM)1.38
OCFY15.5%
SpS38.49
BVpS13.42
TBVpS13.22
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.83% | ||
| ROE | -6.63% | ||
| ROCE | 8.93% | ||
| ROIC | 6.09% | ||
| ROICexc | 6.21% | ||
| ROICexgc | 6.24% | ||
| OM | 7.12% | ||
| PM (TTM) | N/A | ||
| GM | 19.92% | ||
| FCFM | 3.3% |
ROA(3y)-1.52%
ROA(5y)-0.59%
ROE(3y)-5.41%
ROE(5y)-2.35%
ROIC(3y)3.45%
ROIC(5y)3.76%
ROICexc(3y)3.53%
ROICexc(5y)3.91%
ROICexgc(3y)3.56%
ROICexgc(5y)3.96%
ROCE(3y)5.36%
ROCE(5y)5.89%
ROICexcg growth 3Y4.87%
ROICexcg growth 5Y8.45%
ROICexc growth 3Y5.17%
ROICexc growth 5Y8.88%
OM growth 3Y2.34%
OM growth 5Y10.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.02%
GM growth 5Y-0.42%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 5.23 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 21.19% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 1.06 | ||
| Cash Conversion | 42.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 1.36 |
F-Score7
WACC18.38%
ROIC/WACC0.33
Cap/Depr(3y)33.65%
Cap/Depr(5y)74.84%
Cap/Sales(3y)0.64%
Cap/Sales(5y)1.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)125%
EPS 3Y-41.62%
EPS 5Y-26.54%
EPS Q2Q%229.63%
EPS Next Y46.11%
EPS Next 2Y109.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.27%
Revenue growth 3Y9.89%
Revenue growth 5Y8.71%
Sales Q2Q%8.33%
Revenue Next Year3.88%
Revenue Next 2Y4.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.18%
EBIT growth 3Y12.47%
EBIT growth 5Y19.6%
EBIT Next Year81.8%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y149.51%
FCF growth 3Y-3.25%
FCF growth 5YN/A
OCF growth 1Y161.41%
OCF growth 3Y-11.28%
OCF growth 5YN/A