Motorcar Parts of America, Inc.
$10.55
-2.1%Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also offers test solutions and diagnostic equipment for electric vehicle powertrain development and manufacturing, including electric motor test systems, e-axle test systems, advanced power emulators, and charging unit test systems, as well as test systems for alternators, starters, belt starter generator, and bench-top testers, as well as turbochargers and test services for electric vehicle inverters. The company sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. Motorcar Parts of America, Inc. was founded in 1968 and is headquartered in Torrance, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -10.7).
Valuation inputs: P/E -10.7, earnings yield N/A, momentum -2.1%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -7.6%, ROIC +5.6%).
Profitability stack: net margin -2.6%, ROE -7.6%, ROIC +5.6%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +73.1%, momentum -2.1%, net margin -2.6%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Motorcar Parts of America, Inc. Market vs Earnings Trajectory
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Motorcar Parts of America, Inc. Fair Value Envelope
Motorcar Parts of America, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Non-operating losses: Core business is profitable but other expenses (interest, taxes, one-time items) are driving net losses. Review capital structure and non-operating items.
Motorcar Parts of America, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Motorcar Parts of America, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Motorcar Parts of America, Inc. Street Expectations Map
Wall Street analysts project that MPAA stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 20.00, with estimates ranging from a low of 20.00 to a high of 20.00.
The consensus 1-year price target stands at 20.00, with estimates ranging from a low of 20.00 to a high of 20.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Motorcar Parts of America, Inc. Insider Positioning
During the last 12 months, insiders have purchased $10K and sold $19K worth of MPAA shares, resulting in $9K of net selling activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
1.0K
9.67K
0
0.00
+10K
+$10K
6-9 Months
0
0.00
1.1K
18.52K
-19K
-$19K
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Bryan David
Director
$10K
Top Sellers
Burlingame Glenn Daniel
Officer: Vp, General Counsel And Sec.
$19K
Insider Activity Analysis
Net Insider Sentiment
Slightly bearish with $9K net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.
Buy/Sell Ratio
Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.
Insider Participation
1 insider buyers and 1 sellers. Equal participation suggests mixed or neutral insider views.
No Dividend Yield Data
MPAA has not reported any dividend yield values in the available annual periods.
mpaa Dividend History
Learning Layer
Related Guides
Build conviction on MPAA by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.