STANDARD MOTOR PRODS (SMP) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:SMP • US8536661056
39.73 USD
-0.6 (-1.49%)
Last: Jan 30, 2026, 12:53 PM
We assign a fundamental rating of 5 out of 10 to SMP. SMP was compared to 42 industry peers in the Automobile Components industry. While SMP is still in line with the averages on profitability rating, there are concerns on its financial health. SMP is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
- In the past year SMP was profitable.
- SMP had a positive operating cash flow in the past year.
- SMP had positive earnings in each of the past 5 years.
- SMP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of SMP (1.54%) is comparable to the rest of the industry.
- With a decent Return On Equity value of 4.62%, SMP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.33%, SMP is in line with its industry, outperforming 57.14% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SMP is below the industry average of 9.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.62% | ||
| ROIC | 6.33% |
ROA(3y)2.86%
ROA(5y)4.43%
ROE(3y)6.31%
ROE(5y)8.89%
ROIC(3y)7.06%
ROIC(5y)9.5%
1.3 Margins
- Looking at the Profit Margin, with a value of 1.79%, SMP is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
- In the last couple of years the Profit Margin of SMP has declined.
- The Operating Margin of SMP (7.05%) is better than 71.43% of its industry peers.
- In the last couple of years the Operating Margin of SMP has declined.
- SMP's Gross Margin of 30.78% is fine compared to the rest of the industry. SMP outperforms 76.19% of its industry peers.
- In the last couple of years the Gross Margin of SMP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.05% | ||
| PM (TTM) | 1.79% | ||
| GM | 30.78% |
OM growth 3Y-12.92%
OM growth 5Y-5.07%
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
- The number of shares outstanding for SMP has been reduced compared to 5 years ago.
- SMP has a worse debt/assets ratio than last year.
2.2 Solvency
- SMP has an Altman-Z score of 2.18. 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.
- Looking at the Altman-Z score, with a value of 2.18, SMP is in line with its industry, outperforming 50.00% of the companies in the same industry.
- The Debt to FCF ratio of SMP is 13.11, which is on the high side as it means it would take SMP, 13.11 years of fcf income to pay off all of its debts.
- SMP has a Debt to FCF ratio of 13.11. This is comparable to the rest of the industry: SMP outperforms 52.38% of its industry peers.
- A Debt/Equity ratio of 0.80 indicates that SMP is somewhat dependend on debt financing.
- SMP has a worse Debt to Equity ratio (0.80) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.11 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.75
WACC8.47%
2.3 Liquidity
- SMP has a Current Ratio of 1.96. This is a normal value and indicates that SMP is financially healthy and should not expect problems in meeting its short term obligations.
- SMP has a Current ratio (1.96) which is in line with its industry peers.
- A Quick Ratio of 0.73 indicates that SMP may have some problems paying its short term obligations.
- SMP has a worse Quick ratio (0.73) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- SMP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.60%, which is quite impressive.
- SMP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.51% yearly.
- The Revenue has grown by 23.96% in the past year. This is a very strong growth!
- 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)27.6%
EPS 3Y-10.6%
EPS 5Y0.51%
EPS Q2Q%6.25%
Revenue 1Y (TTM)23.96%
Revenue growth 3Y4.07%
Revenue growth 5Y5.17%
Sales Q2Q%24.94%
3.2 Future
- SMP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.88% yearly.
- SMP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.69% yearly.
EPS Next Y24.8%
EPS Next 2Y17.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year26.36%
Revenue Next 2Y14.53%
Revenue Next 3Y13.69%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 10.11, which indicates a very decent valuation of SMP.
- Based on the Price/Earnings ratio, SMP is valued cheaper than 85.71% of the companies in the same industry.
- SMP is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 8.99, which indicates a very decent valuation of SMP.
- Based on the Price/Forward Earnings ratio, SMP is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- SMP is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SMP indicates a somewhat cheap valuation: SMP is cheaper than 61.90% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SMP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.44 | ||
| EV/EBITDA | 8.41 |
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.
- SMP's earnings are expected to grow with 17.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)19.79
EPS Next 2Y17.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- SMP has a Yearly Dividend Yield of 3.12%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.61, SMP pays a better dividend. On top of this SMP pays more dividend than 97.62% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SMP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
5.2 History
- The dividend of SMP has a limited annual growth rate of 4.76%.
- SMP has been paying a dividend for at least 10 years, so it has 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
- 85.51% of the earnings are spent on dividend by SMP. This is not a sustainable payout ratio.
- The dividend of SMP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP85.51%
EPS Next 2Y17.88%
EPS Next 3YN/A
STANDARD MOTOR PRODS / SMP FAQ
What is the ChartMill fundamental rating of STANDARD MOTOR PRODS (SMP) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SMP.
What is the valuation status of STANDARD MOTOR PRODS (SMP) stock?
ChartMill assigns a valuation rating of 7 / 10 to STANDARD MOTOR PRODS (SMP). This can be considered as Undervalued.
What is the profitability of SMP stock?
STANDARD MOTOR PRODS (SMP) has a profitability rating of 5 / 10.
How financially healthy is STANDARD MOTOR PRODS?
The financial health rating of STANDARD MOTOR PRODS (SMP) is 3 / 10.
Can you provide the dividend sustainability for SMP stock?
The dividend rating of STANDARD MOTOR PRODS (SMP) is 6 / 10 and the dividend payout ratio is 85.51%.