Fact based stock research
Motorcar Parts of America (NasdaqGS:MPAA)
US6200711009
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
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Motorcar Parts of America stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Motorcar Parts of America (Auto Parts & Equipment, USA) shares have much better financial characteristics than comparable stocks. Shares of Motorcar Parts of America are a good value (attractively priced) with a consolidated Value Rank of 77 (better than 77% of alternatives), are safely financed (Safety Rank of 87, which means low debt burdens), but show below-average growth (Growth Rank of 39). ...read more
RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Motorcar Parts of America's financial characteristics. As the company Motorcar Parts of America's key financial metrics exhibit good value (Obermatt Value Rank of 77) but low growth (Obermatt Growth Rank of 39) while being safely financed (Obermatt Safety Rank of 87), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 77% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Auto Parts & Equipment |
| Index | NASDAQ |
| Size class | Medium |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Motorcar Parts of America
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 76 |
|
69 |
|
83 |
|
77 |
|
| GROWTH | ||||||||
| GROWTH | 40 |
|
7 |
|
67 |
|
39 |
|
| SAFETY | ||||||||
| SAFETY | 37 |
|
42 |
|
87 |
|
87 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
17 |
|
43 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
9 |
|
73 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Motorcar Parts of America (Auto Parts & Equipment, USA) shares have much better financial characteristics than comparable stocks. Shares of Motorcar Parts of America are a good value (attractively priced) with a consolidated Value Rank of 77 (better than 77% of alternatives), are safely financed (Safety Rank of 87, which means low debt burdens), but show below-average growth (Growth Rank of 39). ...read more
RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Motorcar Parts of America's financial characteristics. As the company Motorcar Parts of America's key financial metrics exhibit good value (Obermatt Value Rank of 77) but low growth (Obermatt Growth Rank of 39) while being safely financed (Obermatt Safety Rank of 87), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 77% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 76 |
|
69 |
|
83 |
|
77 |
|
| GROWTH | ||||||||
| GROWTH | 40 |
|
7 |
|
67 |
|
39 |
|
| SAFETY | ||||||||
| SAFETY | 37 |
|
42 |
|
87 |
|
87 |
|
| COMBINED | ||||||||
| COMBINED | 51 |
|
17 |
|
89 |
|
78 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 77 (better than 77% compared with alternatives) for 2024, Motorcar Parts of America shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Motorcar Parts of America. Price-to-Sales (P/S) is 91, which means that the stock price compared with what market professionals expect for future sales is lower than for 91% of comparable companies, indicating a good value regarding Motorcar Parts of America's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 87% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 94. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Motorcar Parts of America (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 77, is a buy recommendation based on Motorcar Parts of America's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 91 |
|
76 |
|
89 |
|
91 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 67 |
|
95 |
|
97 |
|
87 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 88 |
|
97 |
|
96 |
|
94 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 76 |
|
69 |
|
83 |
|
77 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), Motorcar Parts of America shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Motorcar Parts of America. Sales Growth has a rank of 55, which means that, currently, professionals expect the company to grow more than 55% of its competitors. Profit Growth with a rank of 100 is also above average. But Capital Growth has only a rank of 9, and Stock Returns with 15 are also below-average. Stock returns for Motorcar Parts of America have recently been below 85% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Motorcar Parts of America. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 40 |
|
17 |
|
70 |
|
55 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 75 |
|
7 |
|
90 |
|
100 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
43 |
|
55 |
|
9 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 25 |
|
33 |
|
21 |
|
15 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 40 |
|
7 |
|
67 |
|
39 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 87 (better than 87% compared with alternatives) for 2024, the company Motorcar Parts of America has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Motorcar Parts of America is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Motorcar Parts of America. Refinancing is at 97, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 97% of its competitors. Liquidity is also good at 93, meaning the company generates more profit to service its debt than 93% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 30, which means the company has an above-average debt-to-equity ratio. It has more debt than 70% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 87 (better than 87% compared with alternatives), Motorcar Parts of America has a financing structure that is significantly safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Motorcar Parts of America could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Motorcar Parts of America and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 8 |
|
50 |
|
26 |
|
30 |
|
| REFINANCING | ||||||||
| REFINANCING | 98 |
|
67 |
|
95 |
|
97 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 28 |
|
31 |
|
93 |
|
93 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 37 |
|
42 |
|
87 |
|
87 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
31 |
|
81 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
63 |
|
47 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
6 |
|
24 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
17 |
|
43 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Motorcar Parts of America from November 14, 2024.
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