NasdaqGS:MPAA

Stock Analysis Report

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Executive Summary

Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Motorcar Parts of America's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MPAA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.4%

MPAA

-0.8%

US Auto Components

2.3%

US Market


1 Year Return

-13.5%

MPAA

-11.7%

US Auto Components

6.7%

US Market

Return vs Industry: MPAA underperformed the US Auto Components industry which returned -11.3% over the past year.

Return vs Market: MPAA underperformed the US Market which returned 6.1% over the past year.


Shareholder returns

MPAAIndustryMarket
7 Day-5.4%-0.8%2.3%
30 Day6.7%-6.5%1.5%
90 Day30.8%23.5%17.8%
1 Year-13.5%-13.5%-10.6%-11.7%9.0%6.7%
3 Year-42.9%-42.9%-25.3%-33.1%36.6%27.7%
5 Year-45.7%-45.7%-4.8%-18.8%64.2%46.2%

Price Volatility Vs. Market

How volatile is Motorcar Parts of America's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Motorcar Parts of America undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MPAA ($16.04) is trading below our estimate of fair value ($63.5)

Significantly Below Fair Value: MPAA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MPAA is unprofitable, so we can't compare its PE Ratio to the US Auto Components industry average.

PE vs Market: MPAA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MPAA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MPAA is good value based on its PB Ratio (1.1x) compared to the US Auto Components industry average (1.4x).


Next Steps

Future Growth

How is Motorcar Parts of America forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

92.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPAA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: MPAA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MPAA's is expected to become profitable in the next 3 years.

Revenue vs Market: MPAA's revenue (5.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: MPAA's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MPAA's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Motorcar Parts of America performed over the past 5 years?

-31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPAA is currently unprofitable.

Growing Profit Margin: MPAA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MPAA is unprofitable, and losses have increased over the past 5 years at a rate of -31.7% per year.

Accelerating Growth: Unable to compare MPAA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MPAA is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (3.5%).


Return on Equity

High ROE: MPAA has a negative Return on Equity (-2.65%), as it is currently unprofitable.


Next Steps

Financial Health

How is Motorcar Parts of America's financial position?


Financial Position Analysis

Short Term Liabilities: MPAA's short term assets ($409.1M) exceed its short term liabilities ($318.5M).

Long Term Liabilities: MPAA's short term assets ($409.1M) exceed its long term liabilities ($183.0M).


Debt to Equity History and Analysis

Debt Level: MPAA's debt to equity ratio (63.9%) is considered high.

Reducing Debt: MPAA's debt to equity ratio has increased from 40.7% to 63.9% over the past 5 years.

Debt Coverage: MPAA's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: MPAA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Motorcar Parts of America current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MPAA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MPAA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MPAA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MPAA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MPAA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Selwyn Joffe (63yo)

17.42yrs

Tenure

US$3,680,732

Compensation

Mr. Selwyn H. Joffe, CPA has been the President and Chief Executive Officer of Motorcar Parts of America, Inc. since February 2003. Mr. Joffe has been the Chairman of the Board at Motorcar Parts of America ...


CEO Compensation Analysis

Compensation vs Market: Selwyn's total compensation ($USD3.68M) is above average for companies of similar size in the US market ($USD2.16M).

Compensation vs Earnings: Selwyn's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Selwyn Joffe
Chairman17.42yrsUS$3.68m1.17% $3.5m
David Lee
Chief Financial Officer12.42yrsUS$643.46k0.098% $298.1k
Douglas Schooner
Chief Manufacturing Officer & Senior VP of Operations for Under-the-Car Product Lines6.08yrsUS$513.07k0.055% $168.1k
Kamlesh Shah
Chief Accounting Officer0.67yrno data0.028% $85.1k
Gary Maier
Vice President of Corporate Communications and Investor Relationsno datano datano data
Juliet Stone
VP, General Counsel & Secretary0.83yrno datano data
Richard Mochulsky
Senior Vice President of Sales & Marketing1.17yrsUS$192.99k0.040% $121.3k
Peter Murnen
Chief Operating Officer of Canada1.5yrsno datano data
Bryan Cain
Senior Vice President of Operations for Rotating Electrical3.17yrsno datano data
Jack Vollbrecht
Senior Vice President of Strategy and Government Relations3.17yrsno datano data

3.2yrs

Average Tenure

58.5yo

Average Age

Experienced Management: MPAA's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Selwyn Joffe
Chairman17.42yrsUS$3.68m1.17% $3.5m
Joseph Ferguson
Independent Lead Director0.33yrUS$149.00k0.047% $144.3k
Philip Gay
Independent Director15.67yrsUS$169.00k0.070% $211.8k
Rudolph Borneo
Independent Director15.67yrsUS$159.00k0.15% $457.6k
Scott Adelson
Independent Director12.5yrsUS$146.00k0.25% $763.2k
Duane Miller
Independent Director12.08yrsUS$154.50k0.030% $89.9k
Jeffrey Mirvis
Independent Director11.42yrsUS$142.00k0.23% $694.9k
Barbara Whittaker
Independent Director3.42yrsUS$135.00k0.040% $121.3k
David Bryan
Director4.08yrsUS$135.00k0.049% $150.5k

12.1yrs

Average Tenure

63yo

Average Age

Experienced Board: MPAA's board of directors are seasoned and experienced ( 12.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Motorcar Parts of America, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Motorcar Parts of America, Inc.
  • Ticker: MPAA
  • Exchange: NasdaqGS
  • Founded: 1968
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$304.317m
  • Shares outstanding: 18.97m
  • Website: https://www.motorcarparts.com

Number of Employees


Location

  • Motorcar Parts of America, Inc.
  • 2929 California Street
  • Torrance
  • California
  • 90503
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPAANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1994

Biography

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; brake-related products comprising brake calipers, brake boosters, and brake master cylinders; and diagnostics and other products, which consist of diagnostics systems and advanced power emulators that are used for development of electric vehicles and aerospace applications, as well as power electronic products for the development and production of electric vehicles and turbochargers. It also designs and manufactures test solutions for performance, endurance, and production testing of electric motors, inverters, alternators, starters, and belt starter generators for the original equipment, aerospace, and aftermarket. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 00:04
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.