Motorcar Parts of America, Inc. Fundamental Analysis
Motorcar Parts of America, Inc. (MPAA) shows weak financial fundamentals with a PE ratio of 23.15, profit margin of 1.57%, and ROE of 4.75%. The company generates $0.8B in annual revenue with moderate year-over-year growth of 5.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MPAA's fundamental strength across five key dimensions:
Efficiency Score
WeakMPAA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMPAA trades at attractive valuation levels.
Growth Score
ExcellentMPAA delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMPAA maintains a strong and stable balance sheet.
Profitability Score
WeakMPAA struggles to sustain strong margins.
Key Financial Metrics
Is MPAA Expensive or Cheap?
P/E Ratio
MPAA trades at 23.15 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MPAA's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Motorcar Parts of America, Inc. at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.38 times EBITDA. This is generally considered low.
How Well Does MPAA Make Money?
Net Profit Margin
For every $100 in sales, Motorcar Parts of America, Inc. keeps $1.57 as profit after all expenses.
Operating Margin
Core operations generate 6.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.75 in profit for every $100 of shareholder equity.
ROA
Motorcar Parts of America, Inc. generates $1.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Motorcar Parts of America, Inc. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Motorcar Parts of America, Inc. generates weak or negative free cash flow of $1.05M, restricting financial flexibility.
FCF Per Share
Each share generates $0.06 in free cash annually.
FCF Yield
MPAA converts 0.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How MPAA Stacks Against Its Sector Peers
| Metric | MPAA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.15 | 24.16 | Neutral |
| ROE | 4.75% | 1194.00% | Weak |
| Net Margin | 1.57% | 2564.00% | Weak |
| Debt/Equity | 0.75 | 0.70 | Neutral |
| Current Ratio | 1.46 | 2.83 | Neutral |
| ROA | 1.22% | -8257.00% (disorted) | Weak |
MPAA outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Motorcar Parts of America, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.80%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-156.61%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
132.48%
Industry Style: Cyclical, Growth, Discretionary
High Growth