📊 MPAA Key Takeaways
Is Motorcar Parts Of America Inc. (MPAA) a Good Investment?
Despite positive EPS growth, MPAA exhibits concerning operational fundamentals with razor-thin net margins (0.5%) and weak returns on equity (1.0%) and assets (0.3%), indicating poor capital efficiency and profitability. The company's deteriorating interest coverage (1.8x) and high liabilities relative to assets suggest financial stress, while the modest free cash flow generation provides limited cushion for debt servicing or strategic initiatives.
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.
Why Buy Motorcar Parts Of America Inc. Stock? MPAA Key Strengths
- Positive free cash flow generation of $21.4M with 3.7% FCF margin demonstrates ability to convert revenue to cash
- Moderate debt burden with 0.10x debt-to-equity ratio and manageable long-term debt of $25.1M relative to asset base
- Current ratio of 1.43x indicates adequate short-term liquidity to meet obligations
- 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
- Extremely low net profit margin of 0.5% shows minimal earnings per dollar of revenue with limited room for adverse conditions
- Weak return metrics (ROE 1.0%, ROA 0.3%) indicate severe inefficiency in deploying shareholder capital and assets
- Quick ratio of 0.41x reveals significant working capital stress when excluding inventory; low interest coverage of 1.8x provides minimal protection against rate increases or operational deterioration
- 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
- Gross margin sustainability and operating leverage in auto parts sector
- Interest coverage trend and debt service capability
- Return on equity trajectory and working capital management
- Interest coverage
- Free cash flow margin
Motorcar Parts Of America Inc. (MPAA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.7% 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 40% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.22 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 Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MPAA's key strengths?
Claude: Positive free cash flow generation of $21.4M with 3.7% FCF margin demonstrates ability to convert revenue to cash. Moderate debt burden with 0.10x debt-to-equity ratio and manageable long-term debt of $25.1M relative to asset base. 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: Extremely low net profit margin of 0.5% shows minimal earnings per dollar of revenue with limited room for adverse conditions. Weak return metrics (ROE 1.0%, ROA 0.3%) indicate severe inefficiency in deploying shareholder capital and assets. 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 $577.5M.
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 $0.13.
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 rating reflects both perspectives for balanced insights.
Is MPAA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Motorcar Parts Of America Inc. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MPAA stock overvalued or undervalued?
Valuation metrics for MPAA: ROE of 1.0% (sector avg: 12%), net margin of 0.5% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy MPAA stock in 2026?
Our dual AI analysis gives Motorcar Parts Of America Inc. a combined SELL rating 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 $23.7M, with capital expenditures of $2.3M. FCF margin is 3.7%.
How does MPAA compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 0.5% (avg: 6%), ROE 1.0% (avg: 12%), current ratio 1.43 (avg: 1.2).