STANDARD MOTOR PRODS (SMP) Stock Fundamental Analysis
NYSE:SMP - New York Stock Exchange, Inc. - US8536661056 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SMP. SMP was compared to 83 industry peers in the Automobile Components industry. The financial health of SMP is average, but there are quite some concerns on its profitability. SMP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SMP had positive earnings in the past year.
In the past year SMP had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.68%, SMP is doing worse than 67.47% of the companies in the same industry.
SMP has a Return On Equity of 5.66%. This is in the lower half of the industry: SMP underperforms 68.67% of its industry peers.
SMP has a Return On Invested Capital of 7.13%. This is in the lower half of the industry: SMP underperforms 65.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SMP is in line with the industry average of 9.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 5.66% | ||
| ROIC | 7.13% |
ROA(3y)4.88%
ROA(5y)5.41%
ROE(3y)9.85%
ROE(5y)10.29%
ROIC(3y)9.86%
ROIC(5y)10.73%
1.3 Margins
Looking at the Profit Margin, with a value of 2.56%, SMP is doing worse than 66.27% of the companies in the same industry.
In the last couple of years the Profit Margin of SMP has declined.
Looking at the Operating Margin, with a value of 6.64%, SMP is doing worse than 66.27% of the companies in the same industry.
SMP's Operating Margin has declined in the last couple of years.
SMP has a Gross Margin of 28.62%. This is in the lower half of the industry: SMP underperforms 61.45% of its industry peers.
SMP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.64% | ||
| PM (TTM) | 2.56% | ||
| GM | 28.62% |
OM growth 3Y-10.91%
OM growth 5Y-2.23%
PM growth 3Y-20.93%
PM growth 5Y-8.58%
GM growth 3Y-1.37%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
SMP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SMP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SMP has been reduced compared to 5 years ago.
SMP has a better debt/assets ratio than last year.
2.2 Solvency
SMP has an Altman-Z score of 2.84. 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 has a better Altman-Z score (2.84) than 68.67% of its industry peers.
The Debt to FCF ratio of SMP is 3.19, which is a good value as it means it would take SMP, 3.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.19, SMP is in line with its industry, outperforming 43.37% of the companies in the same industry.
SMP has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SMP (0.22) is better than 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.76
WACC9.37%
2.3 Liquidity
SMP has a Current Ratio of 2.25. This indicates that SMP is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.25, SMP is doing good in the industry, outperforming 77.11% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that SMP may have some problems paying its short term obligations.
SMP's Quick ratio of 0.77 is on the low side compared to the rest of the industry. SMP is outperformed by 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for SMP have decreased by -5.23% in the last year.
The Earnings Per Share has been growing slightly by 2.82% on average over the past years.
The Revenue has been growing slightly by 2.58% in the past year.
SMP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.46% yearly.
EPS 1Y (TTM)-5.23%
EPS 3Y-6.81%
EPS 5Y2.82%
EPS Q2Q%15.32%
Revenue 1Y (TTM)2.58%
Revenue growth 3Y6.37%
Revenue growth 5Y4.46%
Sales Q2Q%3.33%
3.2 Future
The Earnings Per Share is expected to grow by 8.54% on average over the next years. This is quite good.
SMP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.29% yearly.
EPS Next Y8.08%
EPS Next 2Y8.66%
EPS Next 3Y8.54%
EPS Next 5YN/A
Revenue Next Year2.65%
Revenue Next 2Y2.47%
Revenue Next 3Y2.29%
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.
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
A Price/Earnings ratio of 10.06 indicates a reasonable valuation of SMP.
Based on the Price/Earnings ratio, SMP is valued a bit cheaper than the industry average as 71.08% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.63, SMP is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.96, the valuation of SMP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SMP is valued a bit cheaper than the industry average as 66.27% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, SMP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
SMP's Enterprise Value to EBITDA is on the same level as the industry average.
SMP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.02 | ||
| EV/EBITDA | 6.4 |
4.3 Compensation for Growth
SMP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.24
PEG (5Y)3.57
EPS Next 2Y8.66%
EPS Next 3Y8.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.91%, SMP has a reasonable but not impressive dividend return.
SMP's Dividend Yield is comparable with the industry average which is at 4.03.
Compared to an average S&P500 Dividend Yield of 2.27, SMP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
On average, the dividend of SMP grows each year by 6.56%, which is quite nice.
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)6.56%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
70.21% 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.
DP70.21%
EPS Next 2Y8.66%
EPS Next 3Y8.54%
30.98
-0.7 (-2.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners82.49%
Inst Owner Change-90.13%
Ins Owners5.06%
Ins Owner Change1.49%
Market Cap672.89M
Analysts83.33
Price Target41.31 (33.34%)
Short Float %2.66%
Short Ratio5.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend1.16
Dividend Growth(5Y)6.56%
DP70.21%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.57%
Min EPS beat(2)14.17%
Max EPS beat(2)24.96%
EPS beat(4)3
Avg EPS beat(4)4.39%
Min EPS beat(4)-41.51%
Max EPS beat(4)24.96%
EPS beat(8)6
Avg EPS beat(8)5.46%
EPS beat(12)9
Avg EPS beat(12)7.56%
EPS beat(16)13
Avg EPS beat(16)20.78%
Revenue beat(2)1
Avg Revenue beat(2)2.74%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)5.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-8.51%
Max Revenue beat(4)5.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.85%
Revenue beat(12)4
Avg Revenue beat(12)-0.14%
Revenue beat(16)8
Avg Revenue beat(16)2.93%
PT rev (1m)0%
PT rev (3m)-3.57%
EPS NQ rev (1m)18.24%
EPS NQ rev (3m)18.24%
EPS NY rev (1m)0%
EPS NY rev (3m)2.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 8.96 | ||
| P/S | 0.48 | ||
| P/FCF | 15.02 | ||
| P/OCF | 7.51 | ||
| P/B | 1.05 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 6.4 |
EPS(TTM)3.08
EY9.94%
EPS(NY)3.46
Fwd EY11.17%
FCF(TTM)2.06
FCFY6.66%
OCF(TTM)4.12
OCFY13.31%
SpS64.97
BVpS29.41
TBVpS19.26
PEG (NY)1.24
PEG (5Y)3.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 5.66% | ||
| ROCE | 9.39% | ||
| ROIC | 7.13% | ||
| ROICexc | 7.33% | ||
| ROICexgc | 9.47% | ||
| OM | 6.64% | ||
| PM (TTM) | 2.56% | ||
| GM | 28.62% | ||
| FCFM | 3.17% |
ROA(3y)4.88%
ROA(5y)5.41%
ROE(3y)9.85%
ROE(5y)10.29%
ROIC(3y)9.86%
ROIC(5y)10.73%
ROICexc(3y)10.3%
ROICexc(5y)11.11%
ROICexgc(3y)14.7%
ROICexgc(5y)15.07%
ROCE(3y)12.98%
ROCE(5y)14.43%
ROICexcg growth 3Y-15.73%
ROICexcg growth 5Y-7.38%
ROICexc growth 3Y-16.92%
ROICexc growth 5Y-8.14%
OM growth 3Y-10.91%
OM growth 5Y-2.23%
PM growth 3Y-20.93%
PM growth 5Y-8.58%
GM growth 3Y-1.37%
GM growth 5Y-0.01%
F-Score5
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 151.6% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 8.62 | ||
| Cash Conversion | 72.66% | ||
| Profit Quality | 123.97% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.84 |
F-Score5
WACC9.37%
ROIC/WACC0.76
Cap/Depr(3y)95.12%
Cap/Depr(5y)83.17%
Cap/Sales(3y)2%
Cap/Sales(5y)1.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.23%
EPS 3Y-6.81%
EPS 5Y2.82%
EPS Q2Q%15.32%
EPS Next Y8.08%
EPS Next 2Y8.66%
EPS Next 3Y8.54%
EPS Next 5YN/A
Revenue 1Y (TTM)2.58%
Revenue growth 3Y6.37%
Revenue growth 5Y4.46%
Sales Q2Q%3.33%
Revenue Next Year2.65%
Revenue Next 2Y2.47%
Revenue Next 3Y2.29%
Revenue Next 5YN/A
EBIT growth 1Y-7.75%
EBIT growth 3Y-5.23%
EBIT growth 5Y2.13%
EBIT Next Year25.41%
EBIT Next 3Y12.21%
EBIT Next 5YN/A
FCF growth 1Y147.15%
FCF growth 3Y13.02%
FCF growth 5Y18.16%
OCF growth 1Y229.8%
OCF growth 3Y13.79%
OCF growth 5Y15.46%