STANDARD MOTOR PRODS (SMP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SMP - US8536661056 - Common Stock
39.4 USD
+0.1 (+0.25%)
39.4 USD
0 (0%)
SMP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
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.
- 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 has a Return On Assets (1.54%) which 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.
- SMP has a Return On Invested Capital of 6.33%. This is comparable to the rest of the industry: SMP outperforms 57.14% of its industry peers.
- 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 better Profit Margin (1.79%) than 64.29% of its industry peers.
- SMP's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 7.05%, SMP is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- SMP's Operating Margin has declined in the last couple of years.
- SMP has a better Gross Margin (30.78%) than 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
- 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
- SMP has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.17 indicates that SMP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.17, SMP perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
- SMP has a debt to FCF ratio of 13.11. This is a negative value and a sign of low solvency as SMP would need 13.11 years to pay back of all of its debts.
- The Debt to FCF ratio of SMP (13.11) is comparable to the rest of the industry.
- SMP has a Debt/Equity ratio of 0.80. This is a neutral value indicating SMP is somewhat dependend on debt financing.
- SMP's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. SMP is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.11 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.78
WACC8.14%
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's Current ratio of 1.96 is in line compared to the rest of the industry. SMP outperforms 54.76% of its industry peers.
- A Quick Ratio of 0.73 indicates that SMP may have some problems paying its short term obligations.
- With a Quick ratio value of 0.73, SMP is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| 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!
- 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
- 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
- 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 10.03, the valuation of SMP can be described as reasonable.
- Based on the Price/Earnings ratio, SMP is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
- SMP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- The Price/Forward Earnings ratio is 8.92, which indicates a very decent valuation of SMP.
- Based on the Price/Forward Earnings ratio, SMP is valued cheaper than 83.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SMP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.03 | ||
| Fwd PE | 8.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SMP is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
- SMP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.28 | ||
| EV/EBITDA | 8.28 |
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)0.4
PEG (5Y)19.62
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 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
- SMP pays out 85.51% of its income as dividend. 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%.