Motorcar Parts of America Inc (MPAA) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Motorcar Parts of America's EV/EBITDA of 2.8 is below its 5-year median of 4.2.

P/B below the industry

Motorcar Parts of America's price-to-book of 0.56 is below the Motor Vehicles and Motor Vehicle Equipment median of 1.56.

Trading below fair value

The share price of $7.62 is below our fair value estimate of $15.78.

Margin of safety over 20%

The price is 51.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth not accelerating

Net income grew -123% over the last twelve months, against a 5-year average of -10.4% a year.

Growing slower than the industry

Revenue grew -9.1% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance lowered

Motorcar Parts of America lowered its fiscal 2026 sales outlook on Feb 9, 2026.

Gross margin improving

Gross margin was 21.1% over the last twelve months, against 20.3% a year earlier.

Return on equity under 15%

Return on equity was -0.2% over the last twelve months and averaged -3.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.0%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Motorcar Parts of America's return on equity of -0.2% is below the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings shrank over 5 years

Net income shrank 10.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was -0.1% over the last twelve months, against a 5-year average of -1.5%.

Net margin below the industry

Motorcar Parts of America's net margin of -0.1% is below the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

No debt

Motorcar Parts of America has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.45 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.18; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Motorcar Parts of America has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.