STANDARD MOTOR PRODS (SMP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SMP - US8536661056 - Common Stock
36.85 USD
-0.25 (-0.67%)
36.85 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SMP. SMP was compared to 43 industry peers in the Automobile Components industry. SMP has a medium profitability rating, but doesn't score so well on its financial health evaluation. SMP is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
SMP had positive earnings in the past year.
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
SMP's Return On Assets of 1.54% is in line compared to the rest of the industry. SMP outperforms 58.14% of its industry peers.
SMP has a Return On Equity of 4.62%. This is in the better half of the industry: SMP outperforms 67.44% of its industry peers.
With a Return On Invested Capital value of 6.33%, SMP perfoms like the industry average, outperforming 58.14% 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
SMP has a Profit Margin of 1.79%. This is in the better half of the industry: SMP outperforms 65.12% of its industry peers.
In the last couple of years the Profit Margin of SMP has declined.
With a decent Operating Margin value of 7.05%, SMP is doing good in the industry, outperforming 72.09% of the companies in the same industry.
In the last couple of years the Operating Margin of SMP has declined.
Looking at the Gross Margin, with a value of 30.78%, SMP is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SMP is destroying value.
Compared to 1 year ago, SMP has less shares outstanding
Compared to 5 years ago, SMP has less shares outstanding
Compared to 1 year ago, SMP has a worse debt to assets ratio.
2.2 Solvency
SMP has an Altman-Z score of 2.14. 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 2.14, SMP is in line with its industry, outperforming 53.49% 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's Debt to FCF ratio of 13.11 is in line compared to the rest of the industry. SMP outperforms 53.49% of its industry peers.
SMP has a Debt/Equity ratio of 0.80. This is a neutral value indicating SMP is somewhat dependend on debt financing.
The Debt to Equity ratio of SMP (0.80) is worse than 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.11 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.74
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.96 indicates that SMP should not have too much problems paying its short term obligations.
The Current ratio of SMP (1.96) is comparable to the rest of the industry.
SMP has a Quick Ratio of 1.96. This is a bad value and indicates that SMP is not financially healthy enough and could expect problems in meeting its short term obligations.
SMP has a worse Quick ratio (0.73) than 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.60% over the past year.
SMP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.51% yearly.
SMP shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.96%.
SMP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
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
The Earnings Per Share is expected to grow by 17.88% on average over the next years. This is quite good.
Based on estimates for the next years, SMP will show a quite strong growth in Revenue. The Revenue will grow by 13.69% on average per year.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.38, the valuation of SMP can be described as reasonable.
Based on the Price/Earnings ratio, SMP is valued cheaper than 90.70% of the companies in the same industry.
SMP is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.34, the valuation of SMP can be described as very reasonable.
90.70% of the companies in the same industry are more expensive than SMP, based on the Price/Forward Earnings ratio.
SMP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
SMP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SMP is cheaper than 65.12% of the companies in the same industry.
SMP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.03 | ||
| EV/EBITDA | 7.95 |
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 17.88% in the coming years.
PEG (NY)0.38
PEG (5Y)18.35
EPS Next 2Y17.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.32%, SMP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.64, SMP pays a better dividend. On top of this SMP pays more dividend than 95.35% of the companies listed in the same industry.
SMP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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
36.85
-0.25 (-0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners82.08%
Inst Owner Change-0.38%
Ins Owners5.17%
Ins Owner Change0.82%
Market Cap810.70M
Revenue(TTM)1.75B
Net Income(TTM)31.28M
Analysts82.86
Price Target47.94 (30.09%)
Short Float %2.9%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend1.16
Dividend Growth(5Y)4.76%
DP85.51%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.8%
Min EPS beat(2)3.16%
Max EPS beat(2)34.45%
EPS beat(4)4
Avg EPS beat(4)31.51%
Min EPS beat(4)3.16%
Max EPS beat(4)82.06%
EPS beat(8)7
Avg EPS beat(8)17.95%
EPS beat(12)10
Avg EPS beat(12)14.14%
EPS beat(16)13
Avg EPS beat(16)13.55%
Revenue beat(2)1
Avg Revenue beat(2)3.37%
Min Revenue beat(2)-1.87%
Max Revenue beat(2)8.61%
Revenue beat(4)3
Avg Revenue beat(4)5.88%
Min Revenue beat(4)-1.87%
Max Revenue beat(4)13%
Revenue beat(8)5
Avg Revenue beat(8)2.8%
Revenue beat(12)5
Avg Revenue beat(12)0.73%
Revenue beat(16)7
Avg Revenue beat(16)1.37%
PT rev (1m)0%
PT rev (3m)1.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.27%
EPS NY rev (1m)0.96%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 8.34 | ||
| P/S | 0.46 | ||
| P/FCF | 18.03 | ||
| P/OCF | 9.63 | ||
| P/B | 1.2 | ||
| P/tB | 7.64 | ||
| EV/EBITDA | 7.95 |
EPS(TTM)3.93
EY10.66%
EPS(NY)4.42
Fwd EY11.99%
FCF(TTM)2.04
FCFY5.55%
OCF(TTM)3.83
OCFY10.38%
SpS79.52
BVpS30.79
TBVpS4.82
PEG (NY)0.38
PEG (5Y)18.35
Graham Number52.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.62% | ||
| ROCE | 8.37% | ||
| ROIC | 6.33% | ||
| ROICexc | 6.73% | ||
| ROICexgc | 11.45% | ||
| OM | 7.05% | ||
| PM (TTM) | 1.79% | ||
| GM | 30.78% | ||
| FCFM | 2.57% |
ROA(3y)2.86%
ROA(5y)4.43%
ROE(3y)6.31%
ROE(5y)8.89%
ROIC(3y)7.06%
ROIC(5y)9.5%
ROICexc(3y)7.27%
ROICexc(5y)9.88%
ROICexgc(3y)10.31%
ROICexgc(5y)13.94%
ROCE(3y)9.34%
ROCE(5y)12.61%
ROICexgc growth 3Y-25.45%
ROICexgc growth 5Y-8.81%
ROICexc growth 3Y-27.66%
ROICexc growth 5Y-13.65%
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%
F-Score5
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.11 | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 93.82% | ||
| Cap/Sales | 2.24% | ||
| Interest Coverage | 4.01 | ||
| Cash Conversion | 50.97% | ||
| Profit Quality | 143.75% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.14 |
F-Score5
WACC8.56%
ROIC/WACC0.74
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)27.6%
EPS 3Y-10.6%
EPS 5Y0.51%
EPS Q2Q%6.25%
EPS Next Y24.8%
EPS Next 2Y17.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)23.96%
Revenue growth 3Y4.07%
Revenue growth 5Y5.17%
Sales Q2Q%24.94%
Revenue Next Year26.36%
Revenue Next 2Y14.53%
Revenue Next 3Y13.69%
Revenue Next 5YN/A
EBIT growth 1Y31.6%
EBIT growth 3Y-9.38%
EBIT growth 5Y-0.17%
EBIT Next Year108.68%
EBIT Next 3Y15.75%
EBIT Next 5YN/A
FCF growth 1Y-71.25%
FCF growth 3Y-18.2%
FCF growth 5Y-11.65%
OCF growth 1Y-53.47%
OCF growth 3Y-3.58%
OCF growth 5Y-0.05%
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%.