NYSE:SMP

Stock Analysis Report

Standard Motor Products

Executive Summary

Standard Motor Products, Inc. manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry.

Snowflake

Fundamentals

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Standard Motor Products's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.3%

SMP

5.2%

US Auto Components

1.8%

US Market


1 Year Return

12.3%

SMP

-2.6%

US Auto Components

7.3%

US Market

Return vs Industry: SMP exceeded the US Auto Components industry which returned -2.6% over the past year.

Return vs Market: SMP exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

SMPIndustryMarket
7 Day6.3%5.2%1.8%
30 Day-0.8%0.3%-0.7%
90 Day9.3%2.5%0.06%
1 Year14.4%12.3%-1.1%-2.6%9.7%7.3%
3 Year8.6%3.1%10.7%-0.8%46.3%36.9%
5 Year39.6%28.3%19.0%2.6%64.5%46.5%

Price Volatility Vs. Market

How volatile is Standard Motor Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Standard Motor Products undervalued compared to its fair value and its price relative to the market?

16.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SMP ($49.06) is trading above our estimate of fair value ($14.32)

Significantly Undervalued: SMP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SMP is poor value based on its PE Ratio (16.9x) compared to the Auto Components industry average (16.7x).

PE vs Market: SMP is good value based on its PE Ratio (16.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SMP is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SMP is overvalued based on its PB Ratio (2.3x) compared to the US Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Standard Motor Products forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMP's forecast earnings growth (14.6% per year) is above the savings rate (2.7%).

Earnings vs Market: SMP's earnings (14.6% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: SMP's earnings are forecast to grow, but not significantly.

Revenue vs Market: SMP's revenue (4.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SMP's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SMP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Standard Motor Products performed over the past 5 years?

0.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SMP's earnings have grown by 0.1% per year over the past 5 years.

Accelerating Growth: SMP's earnings growth over the past year (89.1%) exceeds its 5-year average (0.1% per year).

Earnings vs Industry: SMP earnings growth over the past year (89.1%) exceeded the Auto Components industry 8.1%.


Return on Equity

High ROE: SMP's Return on Equity (13.4%) is considered low.


Return on Assets

ROA vs Industry: SMP has a higher Return on Assets than the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: SMP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Standard Motor Products's financial position?


Financial Position Analysis

Short Term Liabilities: SMP's short term assets ($605.7M) exceeds its short term liabilities ($393.9M)

Long Term Liabilities: SMP's short term assets (605.7M) exceeds its long term liabilities (90.3M)


Debt to Equity History and Analysis

Debt Level: SMP's debt to equity ratio (27.9%) is considered satisfactory

Reducing Debt: SMP's debt to equity ratio has increased from 16.3% to 27.9% over the past 5 years.

Debt Coverage: SMP's debt is well covered by operating cash flow (34.4%).

Interest Coverage: SMP's interest payments on its debt are well covered by EBIT (23.5x coverage).


Balance Sheet

Inventory Level: SMP has a high level of physical assets or inventory.

Debt Coverage by Assets: SMP's debt is covered by short term assets (assets are 4.478850x debt).


Next Steps

Dividend

What is Standard Motor Products's current dividend yield, its reliability and sustainability?

1.88%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SMP's dividend (1.88%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SMP's dividend (1.88%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: SMP's dividend payments have been volatile in the past 10 years.

Growing Dividend: SMP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31%), SMP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Standard Motor Products's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Eric Sills (50yo)

3.6yrs

Tenure

US$1,044,357

Compensation

Mr. Eric Philip Sills has been the President and Chief Executive Officer of Standard Motor Products, Inc. since February 2, 2015 and March 31, 2016 respectively. Mr. Sills served as a Vice President of Glo ...


CEO Compensation Analysis

Compensation vs. Market: Eric's total compensation ($USD1.04M) is about average for companies of similar size in the US market ($USD2.67M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.6yrs

Average Tenure

61.5yo

Average Age

Experienced Management: SMP's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

9.6yrs

Average Tenure

69yo

Average Age

Experienced Board: SMP's board of directors are considered experienced (9.6 years average tenure).


Insider Trading

Insider Buying: SMP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$34,45215 Oct 19
Thomas Tesoro
EntityIndividual
Role
Head of Human Resources
Vice President of Human Resources
Shares725
Max PriceUS$47.52
SellUS$500,20012 Sep 19
Peter Sills
EntityIndividual
Shares10,000
Max PriceUS$50.02
SellUS$66,45712 Sep 19
Dale Burks
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares1,331
Max PriceUS$49.93
SellUS$309,75008 Jul 19
Thomas Tesoro
EntityIndividual
Role
Head of Human Resources
Vice President of Human Resources
Shares7,000
Max PriceUS$44.25
SellUS$171,28230 May 19
Lawrence Sills
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares3,757
Max PriceUS$45.59
SellUS$625,34424 May 19
Lawrence Sills
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares13,713
Max PriceUS$46.42
SellUS$6,05406 May 19
Roger Widmann
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares125
Max PriceUS$48.43
SellUS$88,84806 May 19
Thomas Tesoro
EntityIndividual
Role
Head of Human Resources
Vice President of Human Resources
Shares1,851
Max PriceUS$48.00
SellUS$71,04920 Feb 19
Dale Burks
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares1,431
Max PriceUS$49.65
SellUS$19,76922 Oct 18
Thomas Tesoro
EntityIndividual
Role
Head of Human Resources
Vice President of Human Resources
Shares450
Max PriceUS$43.93

Ownership Breakdown


Management Team

  • Larry Sills (79yo)

    Executive Chairman

    • Tenure: 18.8yrs
    • Compensation: US$733.25k
  • Jim Burke (64yo)

    Chief Operating Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.98m
  • John Gethin (70yo)

    Outside Consultant & Director

    • Tenure: 3.6yrs
    • Compensation: US$186.99k
  • William Fazio (64yo)

    Chief Accounting Officer

    • Tenure: 11.6yrs
  • Carmine Broccole (53yo)

    Senior VP

    • Tenure: 15.2yrs
    • Compensation: US$808.76k
  • Dale Burks (59yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 3.6yrs
    • Compensation: US$958.19k
  • Thomas Tesoro (64yo)

    Vice President of Human Resources

    • Tenure: 13.1yrs
  • Ray Nicholas (55yo)

    VP of Information Technology & Chief Information Officer

    • Tenure: 6.7yrs
  • Eric Sills (50yo)

    CEO, President & Director

    • Tenure: 3.6yrs
    • Compensation: US$1.04m
  • Nathan Iles (43yo)

    Chief Financial Officer

    • Tenure: 0.08yrs

Board Members

  • Pamela Lieberman (65yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$194.34k
  • Roger Widmann (79yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: US$183.02k
  • Larry Sills (79yo)

    Executive Chairman

    • Tenure: 18.8yrs
    • Compensation: US$733.25k
  • John Gethin (70yo)

    Outside Consultant & Director

    • Tenure: 3.6yrs
    • Compensation: US$186.99k
  • Bill Turner (79yo)

    Presiding Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$202.48k
  • Joseph McDonnell (68yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$172.48k
  • Richard Ward (78yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$182.48k
  • Eric Sills (50yo)

    CEO, President & Director

    • Tenure: 3.6yrs
    • Compensation: US$1.04m
  • Alisa Norris (49yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$172.48k
  • Patrick McClymont (49yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$172.48k

Company Information

Standard Motor Products, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Standard Motor Products, Inc.
  • Ticker: SMP
  • Exchange: NYSE
  • Founded: 1919
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$1.095b
  • Shares outstanding: 22.32m
  • Website: https://www.smpcorp.com

Number of Employees


Location

  • Standard Motor Products, Inc.
  • 37-18 Northern Boulevard
  • Long Island City
  • New York
  • 11101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMPNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
SRUDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

Standard Motor Products, Inc. manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. The company operates in two segments, Engine Management and Temperatu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:40
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.