STANDARD MOTOR PRODS (SMP) Stock Fundamental Analysis
NYSE:SMP - New York Stock Exchange, Inc. - US8536661056 - Common Stock - Currency: USD
Taking everything into account, SMP scores 4 out of 10 in our fundamental rating. SMP was compared to 81 industry peers in the Automobile Components industry. Both the profitability and financial health of SMP have multiple concerns. SMP has a correct valuation and a medium growth rate. SMP also has an excellent dividend rating.
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.
Of the past 5 years SMP 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.52%, SMP is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
SMP's Return On Equity of 4.47% is on the low side compared to the rest of the industry. SMP is outperformed by 69.14% of its industry peers.
The Return On Invested Capital of SMP (4.85%) is worse than 76.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SMP is in line with the industry average of 8.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.52% | ||
| ROE | 4.47% | ||
| ROIC | 4.85% |
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
SMP's Profit Margin of 1.88% is on the low side compared to the rest of the industry. SMP is outperformed by 69.14% of its industry peers.
In the last couple of years the Profit Margin of SMP has declined.
SMP's Operating Margin of 6.03% is on the low side compared to the rest of the industry. SMP is outperformed by 65.43% of its industry peers.
In the last couple of years the Operating Margin of SMP has declined.
SMP has a Gross Margin of 28.92%. This is amongst the best in the industry. SMP outperforms 86.42% 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 | 6.03% | ||
| PM (TTM) | 1.88% | ||
| GM | 28.92% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SMP is destroying value.
The number of shares outstanding for SMP has been reduced compared to 1 year ago.
SMP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SMP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.99 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 1.99, SMP is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
The Debt to FCF ratio of SMP is 17.21, which is on the high side as it means it would take SMP, 17.21 years of fcf income to pay off all of its debts.
SMP's Debt to FCF ratio of 17.21 is on the low side compared to the rest of the industry. SMP is outperformed by 76.54% of its industry peers.
SMP has a Debt/Equity ratio of 0.87. This is a neutral value indicating SMP is somewhat dependend on debt financing.
The Debt to Equity ratio of SMP (0.87) is worse than 83.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 17.21 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.61
WACC7.99%
2.3 Liquidity
SMP has a Current Ratio of 2.11. This indicates that SMP is financially healthy and has no problem in meeting its short term obligations.
SMP's Current ratio of 2.11 is fine compared to the rest of the industry. SMP outperforms 76.54% of its industry peers.
SMP has a Quick Ratio of 2.11. This is a bad value and indicates that SMP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.64, SMP is doing worse than 92.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
SMP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.53%, which is quite good.
The Earnings Per Share has been growing slightly by 0.51% on average over the past years.
SMP shows a small growth in Revenue. In the last year, the Revenue has grown by 7.77%.
SMP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
EPS 1Y (TTM)8.53%
EPS 3Y-10.6%
EPS 5Y0.51%
EPS Q2Q%27.03%
Revenue 1Y (TTM)7.77%
Revenue growth 3Y4.07%
Revenue growth 5Y5.17%
Sales Q2Q%18.11%
3.2 Future
Based on estimates for the next years, SMP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.17% on average per year.
The Revenue is expected to grow by 11.29% on average over the next years. This is quite good.
EPS Next Y11.18%
EPS Next 2Y15.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.22%
Revenue Next 2Y11.29%
Revenue Next 3YN/A
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
SMP is valuated cheaply with a Price/Earnings ratio of 7.49.
Based on the Price/Earnings ratio, SMP is valued a bit cheaper than the industry average as 72.84% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. SMP is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.74, which 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 70.37% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SMP to the average of the S&P500 Index (21.08), we can say SMP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 6.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SMP indicates a slightly more expensive valuation: SMP is more expensive than 65.43% of the companies listed in the same industry.
SMP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.94 | ||
| EV/EBITDA | 8.68 |
4.3 Compensation for Growth
SMP's 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 15.17% in the coming years.
PEG (NY)0.67
PEG (5Y)14.66
EPS Next 2Y15.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.21%, SMP is a good candidate for dividend investing.
The stock price of SMP dropped by -23.68% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.71, SMP pays a better dividend. On top of this SMP pays more dividend than 97.53% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, SMP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
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 Years3
Div Non Decr Years4
5.3 Sustainability
SMP pays out 92.15% of its income as dividend. This is not a sustainable payout ratio.
SMP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP92.15%
EPS Next 2Y15.17%
EPS Next 3YN/A
23.82
+0.46 (+1.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners82.49%
Inst Owner Change0.01%
Ins Owners5.06%
Ins Owner Change0.82%
Market Cap541.67M
Analysts83.33
Price Target41.31 (73.43%)
Short Float %2.54%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
Yearly Dividend1.16
Dividend Growth(5Y)4.76%
DP92.15%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.27%
Min EPS beat(2)6.36%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)16.36%
Min EPS beat(4)6.36%
Max EPS beat(4)24.96%
EPS beat(8)6
Avg EPS beat(8)3.37%
EPS beat(12)9
Avg EPS beat(12)5.29%
EPS beat(16)13
Avg EPS beat(16)17.67%
Revenue beat(2)1
Avg Revenue beat(2)6.45%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)13%
Revenue beat(4)3
Avg Revenue beat(4)5.11%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)13%
Revenue beat(8)3
Avg Revenue beat(8)0.34%
Revenue beat(12)4
Avg Revenue beat(12)0.24%
Revenue beat(16)8
Avg Revenue beat(16)3.11%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.63%
EPS NY rev (1m)2.2%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)16.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)17.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 6.74 | ||
| P/S | 0.36 | ||
| P/FCF | 15.94 | ||
| P/OCF | 6.79 | ||
| P/B | 0.85 | ||
| P/tB | 7.08 | ||
| EV/EBITDA | 8.68 |
EPS(TTM)3.18
EY13.35%
EPS(NY)3.54
Fwd EY14.84%
FCF(TTM)1.49
FCFY6.28%
OCF(TTM)3.51
OCFY14.73%
SpS66.96
BVpS28.17
TBVpS3.36
PEG (NY)0.67
PEG (5Y)14.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.52% | ||
| ROE | 4.47% | ||
| ROCE | 6.41% | ||
| ROIC | 4.85% | ||
| ROICexc | 5.01% | ||
| ROICexgc | 8.45% | ||
| OM | 6.03% | ||
| PM (TTM) | 1.88% | ||
| GM | 28.92% | ||
| FCFM | 2.23% |
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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 17.21 | ||
| Debt/EBITDA | 4.47 | ||
| Cap/Depr | 140.13% | ||
| Cap/Sales | 3.01% | ||
| Interest Coverage | 6.29 | ||
| Cash Conversion | 64.07% | ||
| Profit Quality | 118.82% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.99 |
F-Score5
WACC7.99%
ROIC/WACC0.61
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)8.53%
EPS 3Y-10.6%
EPS 5Y0.51%
EPS Q2Q%27.03%
EPS Next Y11.18%
EPS Next 2Y15.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.77%
Revenue growth 3Y4.07%
Revenue growth 5Y5.17%
Sales Q2Q%18.11%
Revenue Next Year20.22%
Revenue Next 2Y11.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.36%
EBIT growth 3Y-11.96%
EBIT growth 5Y-1.88%
EBIT Next Year56.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.74%
FCF growth 3Y-18.2%
FCF growth 5Y-11.65%
OCF growth 1Y-46.84%
OCF growth 3Y-3.58%
OCF growth 5Y-0.05%