STANDARD MOTOR PRODS (SMP) Stock Fundamental Analysis
NYSE:SMP - New York Stock Exchange, Inc. - US8536661056 - Common Stock - Currency: USD
SMP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 80 industry peers in the Automobile Components industry. SMP has a bad profitability rating. Also its financial health evaluation is rather negative. SMP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SMP was profitable.
In the past year SMP had a positive cash flow from operations.
Each year in the past 5 years SMP has been profitable.
SMP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SMP has a Return On Assets of 1.62%. This is in the lower half of the industry: SMP underperforms 70.00% of its industry peers.
The Return On Equity of SMP (4.90%) is worse than 70.00% of its industry peers.
SMP has a Return On Invested Capital of 5.04%. This is in the lower half of the industry: SMP underperforms 77.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SMP is below the industry average of 9.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 4.9% | ||
| ROIC | 5.04% |
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
The Profit Margin of SMP (2.02%) is worse than 70.00% of its industry peers.
In the last couple of years the Profit Margin of SMP has declined.
SMP's Operating Margin of 6.42% is on the low side compared to the rest of the industry. SMP is outperformed by 66.25% of its industry peers.
SMP's Operating Margin has declined in the last couple of years.
SMP has a better Gross Margin (29.66%) than 86.25% of its industry peers.
SMP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.42% | ||
| PM (TTM) | 2.02% | ||
| GM | 29.66% |
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
SMP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SMP has less shares outstanding
Compared to 5 years ago, SMP has less shares outstanding
SMP has a worse debt/assets ratio than last year.
2.2 Solvency
SMP has an Altman-Z score of 2.08. 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 2.08 is on the low side compared to the rest of the industry. SMP is outperformed by 73.75% of its industry peers.
SMP has a debt to FCF ratio of 34.02. This is a negative value and a sign of low solvency as SMP would need 34.02 years to pay back of all of its debts.
The Debt to FCF ratio of SMP (34.02) is worse than 76.25% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that SMP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, SMP is not doing good in the industry: 83.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 34.02 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.57
WACC8.85%
2.3 Liquidity
SMP has a Current Ratio of 2.32. This indicates that SMP is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.32, SMP is doing good in the industry, outperforming 77.50% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that SMP may have some problems paying its short term obligations.
SMP's Quick ratio of 0.82 is on the low side compared to the rest of the industry. SMP is outperformed by 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.80% over the past year.
The Earnings Per Share has been growing slightly by 0.51% on average over the past years.
The Revenue has grown by 13.53% in the past year. This is quite good.
Measured over the past years, SMP shows a small growth in Revenue. The Revenue has been growing by 5.17% on average per year.
EPS 1Y (TTM)27.8%
EPS 3Y-10.6%
EPS 5Y0.51%
EPS Q2Q%80%
Revenue 1Y (TTM)13.53%
Revenue growth 3Y4.07%
Revenue growth 5Y5.17%
Sales Q2Q%24.74%
3.2 Future
The Earnings Per Share is expected to grow by 15.50% on average over the next years. This is quite good.
SMP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.69% yearly.
EPS Next Y14.02%
EPS Next 2Y15.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.99%
Revenue Next 2Y11.69%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.19, the valuation of SMP can be described as very reasonable.
Based on the Price/Earnings ratio, SMP is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of SMP to the average of the S&P500 Index (27.30), we can say SMP is valued rather cheaply.
A Price/Forward Earnings ratio of 7.67 indicates a rather cheap valuation of SMP.
SMP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SMP is cheaper than 71.25% of the companies in the same industry.
SMP is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
SMP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SMP is more expensive than 65.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SMP is valued a bit more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.37 | ||
| EV/EBITDA | 9.77 |
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 15.50% in the coming years.
PEG (NY)0.66
PEG (5Y)17.98
EPS Next 2Y15.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SMP has a Yearly Dividend Yield of 3.70%. Purely for dividend investing, there may be better candidates out there.
SMP's Dividend Yield is comparable with the industry average which is at 4.19.
Compared to an average S&P500 Dividend Yield of 2.34, SMP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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 Years0
Div Non Decr Years4
5.3 Sustainability
82.34% of the earnings are spent on dividend by SMP. This is not a sustainable payout ratio.
SMP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.34%
EPS Next 2Y15.5%
EPS Next 3YN/A
32.52
+0.47 (+1.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners82.91%
Inst Owner Change0%
Ins Owners5.07%
Ins Owner Change0.94%
Market Cap714.79M
Analysts83.33
Price Target41.31 (27.03%)
Short Float %3.56%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend1.16
Dividend Growth(5Y)4.76%
DP82.34%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)44.21%
Min EPS beat(2)6.36%
Max EPS beat(2)82.06%
EPS beat(4)4
Avg EPS beat(4)31.89%
Min EPS beat(4)6.36%
Max EPS beat(4)82.06%
EPS beat(8)6
Avg EPS beat(8)12.88%
EPS beat(12)9
Avg EPS beat(12)9.79%
EPS beat(16)13
Avg EPS beat(16)17.86%
Revenue beat(2)2
Avg Revenue beat(2)8.39%
Min Revenue beat(2)3.78%
Max Revenue beat(2)13%
Revenue beat(4)3
Avg Revenue beat(4)5.56%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)13%
Revenue beat(8)4
Avg Revenue beat(8)0.84%
Revenue beat(12)4
Avg Revenue beat(12)0.14%
Revenue beat(16)8
Avg Revenue beat(16)2.96%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.82%
EPS NY rev (1m)0%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 7.67 | ||
| P/S | 0.46 | ||
| P/FCF | 37.37 | ||
| P/OCF | 11.49 | ||
| P/B | 1.12 | ||
| P/tB | 8.27 | ||
| EV/EBITDA | 9.77 |
EPS(TTM)3.54
EY10.89%
EPS(NY)4.24
Fwd EY13.04%
FCF(TTM)0.87
FCFY2.68%
OCF(TTM)2.83
OCFY8.7%
SpS70.33
BVpS29.02
TBVpS3.93
PEG (NY)0.66
PEG (5Y)17.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 4.9% | ||
| ROCE | 6.66% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.22% | ||
| ROICexgc | 8.46% | ||
| OM | 6.42% | ||
| PM (TTM) | 2.02% | ||
| GM | 29.66% | ||
| FCFM | 1.24% |
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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 34.02 | ||
| Debt/EBITDA | 4.7 | ||
| Cap/Depr | 125.26% | ||
| Cap/Sales | 2.79% | ||
| Interest Coverage | 5.05 | ||
| Cash Conversion | 46.55% | ||
| Profit Quality | 61.22% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.08 |
F-Score5
WACC8.85%
ROIC/WACC0.57
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 Y14.02%
EPS Next 2Y15.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.53%
Revenue growth 3Y4.07%
Revenue growth 5Y5.17%
Sales Q2Q%24.74%
Revenue Next Year20.99%
Revenue Next 2Y11.69%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.09%
EBIT growth 3Y-11.96%
EBIT growth 5Y-1.88%
EBIT Next Year88.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-40.42%
FCF growth 3Y-18.2%
FCF growth 5Y-11.65%
OCF growth 1Y10.85%
OCF growth 3Y-3.58%
OCF growth 5Y-0.05%