📊 MPAA Key Takeaways
Is Motorcar Parts Of America Inc. (MPAA) a Good Investment?
Motorcar Parts experienced explosive revenue growth of +1791% YoY, likely acquisition-driven, but net margin collapsed to 1.6% with ROE of only 4.7%, indicating severe integration challenges and operational inefficiency. Acute liquidity concerns (quick ratio 0.51x, minimal $14.7M cash on $1.0B assets) and the massive earnings-growth disparity (+164% vs +1791% revenue) signal distress masquerading as growth.
MPAA generates solid operating income with positive free cash flow, aided by low capital intensity and modest balance-sheet leverage. Yet razor-thin net profitability, weak interest coverage, and tight liquidity from heavy working-capital needs depress returns and elevate execution risk. A neutral stance is warranted until cash conversion and coverage improve sustainably.
Motorcar Parts Of America Inc. Key Strengths (MPAA)
- Significant absolute revenue scale of $789.8M with strong YoY growth rate
- Positive free cash flow generation of $15.5M and operating cash flow of $19.2M
- Conservative capital structure with debt-to-equity ratio of 0.09x minimizing financial distress risk
- Operating margin of 7.8% with 19% gross margin indicates core profitability
- Positive free cash flow ($21.4M) with low capex requirements
- Low long-term leverage (Debt/Equity 0.10x) supports balance sheet resilience
MPAA Stock Risks: Motorcar Parts Of America Inc. Investment Risks
- Critically low net margin of 1.6% and abysmal returns (ROE 4.7%, ROA 1.2%) indicate operational failure or predatory acquisition economics
- Quick ratio of 0.51x reveals severe liquidity stress—company cannot cover current liabilities without inventory liquidation
- Revenue growth of 1791% vs. net income growth of 164% suggests integration failure, margin compression, or low-quality acquisition
- Weak interest coverage (1.8x) limits shock absorption
- Tight liquidity (quick ratio 0.41x; low cash) reliant on inventories and payables
- Very low net margin (0.5%) and returns (ROE 1%, ROA 0.3%)
Key Metrics to Watch
- Net profit margin trajectory—profitability must improve post-integration or acquisition was value-destructive
- Quick ratio and cash position—liquidity deterioration could trigger forced asset sales or covenant breaches
- Operating cash flow sustainability and inventory efficiency—persistent positive OCF is mandatory given weak profitability
- Interest coverage
- Free cash flow margin
Motorcar Parts Of America Inc. (MPAA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.0% FCF margin may limit capital allocation flexibility.
MPAA Profit Margin, ROE & Profitability Analysis
MPAA vs Automotive Sector: How Motorcar Parts Of America Inc. Compares
How Motorcar Parts Of America Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Motorcar Parts Of America Inc. Stock Overvalued? MPAA Valuation Analysis 2026
Based on fundamental analysis, Motorcar Parts Of America Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Motorcar Parts Of America Inc. Balance Sheet: MPAA Debt, Cash & Liquidity
MPAA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Motorcar Parts Of America Inc.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.51 indicates the company is currently unprofitable.
MPAA Revenue Growth, EPS Growth & YoY Performance
MPAA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $167.7M | $1.8M | $0.09 |
| Q2 2026 | $208.2M | $893.0K | $0.04 |
| Q1 2026 | $169.9M | $3.0M | $0.15 |
| Q3 2025 | $171.9M | -$1.4M | $0.11 |
| Q2 2025 | $196.6M | -$1.4M | $-0.10 |
| Q1 2025 | $159.7M | -$1.4M | $-0.07 |
| Q3 2024 | $151.8M | -$175.0K | $0.05 |
| Q2 2024 | $172.5M | -$175.0K | $-0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Motorcar Parts Of America Inc. Dividends, Buybacks & Capital Allocation
MPAA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Motorcar Parts Of America Inc. (CIK: 0000918251)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MPAA
What is the AI rating for MPAA?
Motorcar Parts Of America Inc. (MPAA) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 63% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MPAA's key strengths?
Claude: Significant absolute revenue scale of $789.8M with strong YoY growth rate. Positive free cash flow generation of $15.5M and operating cash flow of $19.2M. ChatGPT: Operating margin of 7.8% with 19% gross margin indicates core profitability. Positive free cash flow ($21.4M) with low capex requirements.
What are the risks of investing in MPAA?
Claude: Critically low net margin of 1.6% and abysmal returns (ROE 4.7%, ROA 1.2%) indicate operational failure or predatory acquisition economics. Quick ratio of 0.51x reveals severe liquidity stress—company cannot cover current liabilities without inventory liquidation. ChatGPT: Weak interest coverage (1.8x) limits shock absorption. Tight liquidity (quick ratio 0.41x; low cash) reliant on inventories and payables.
What is MPAA's revenue and growth?
Motorcar Parts Of America Inc. reported revenue of $789.8M.
Does MPAA pay dividends?
Motorcar Parts Of America Inc. does not currently pay dividends.
Where can I find MPAA SEC filings?
Official SEC filings for Motorcar Parts Of America Inc. (CIK: 0000918251) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MPAA's EPS?
Motorcar Parts Of America Inc. has a diluted EPS of $0.62.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is MPAA's fundamental grade?
Based on our AI fundamental analysis in June 2026, Motorcar Parts Of America Inc. has a B grade with 63% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is MPAA stock overvalued or undervalued?
Valuation metrics for MPAA: ROE of 4.7% (sector avg: 12%), net margin of 1.6% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is MPAA's AI grade for 2026?
Our dual AI analysis gives Motorcar Parts Of America Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MPAA's free cash flow?
Motorcar Parts Of America Inc.'s operating cash flow is $19.2M, with capital expenditures of $3.7M. FCF margin is 2.0%.
How does MPAA compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 1.6% (avg: 6%), ROE 4.7% (avg: 12%), current ratio 1.46 (avg: 1.2).