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what it is
Motorcar Parts sells replacement auto parts and vehicle testing equipment to big retail chains and distributors.
how it gets paid
Last year Motorcar Parts made $757M in revenue. Rotating electrical products was the main engine at $303M, or 40% of sales.
why it's growing
Revenue grew 5.5% last year. EDGAR shows the latest quarter at $578M of revenue.
what just happened
Latest reported earnings showed $578M in quarterly revenue, but the bigger story is that fiscal 2025 still ended with an estimated EPS loss of -$0.99.
At a glance
C++ balance sheet — some cracks in the foundation
20/100 earnings predictability — expect surprises
6.6x trailing p/e — the market's not buying it — or you found a deal
2.8% return on capital — nothing to write home about
-$0.99 fy2024 eps est
xvary composite: 31/100 — weak
What they do
Motorcar Parts sells replacement auto parts and vehicle testing equipment to big retail chains and distributors.
When your alternator or brake caliper fails, you buy what is on the shelf. That shelf space matters. Motorcar Parts sells into major retail chains and distributors, and it did $757M in annual revenue, which tells you the relationships are real. Remanufacturing (rebuilding used parts for resale, so the company reuses cores and inventory, so what: that can help supply and cost control) is the edge here.
How they make money
$757M
annual revenue · their business grew +5.5% last year
Rotating electrical products
$303M
Brake-related products
$227M
Wheel hub assemblies and bearings
$114M
Test solutions and diagnostic equipment
$76M
Turbochargers and other products
$37M
The products that matter
remanufactured rotating electrical
Alternators & Starters
~$580M · ~77% of revenue
This is the core business. Segment sales fell about 10%, and Q3 company sales dropped to $167.7M from $186.2M a year ago.
core segment
brake-related replacement parts
Brake Calipers & Pads
~$140M · ~18% of revenue
A competitor liquidation created a $17M sales headwind in Q3. That tells you channel disruption can hit this segment fast.
margin pressure
smaller ancillary parts lines
Other Parts
~$37M · ~5% of revenue
This bucket was flat while the two larger segments declined. Helpful, but too small to change the story on a $757M business.
too small to move it
Key numbers
$757M
annual revenue
The company has real scale. The problem is not selling parts. The problem is keeping enough of each sales dollar.
10.2%
operating margin
Operating margin → the share of sales left after running the business → so what: there is not much room for mistakes.
$108M
long-term debt
Debt → money the company owes lenders → so what: a weak quarter hurts more when fixed obligations are already sitting there.
2.8%
return on capital
Return on capital → profit earned on money invested in the business → so what: 2.8% says this business is not squeezing much out of its assets.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 5 — safer than 5% of stocks
- price stability 10 / 100
- long-term debt $108M (36% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for MPAA right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Latest reported earnings showed $578M in quarterly revenue, but the bigger story is that fiscal 2025 still ended with an estimated EPS loss of -$0.99.
EDGAR shows the latest quarter at $578M of revenue, up 244% vs. prior year, with gross margin at 19.0%. Value Line's quarterly history still shows uneven profitability, including a fiscal 2025 path of -$0.91, -$0.15, $0.11, and -$0.04 in quarterly EPS.
$578M
revenue
$0.13
eps
19.0%
gross margin
the number that mattered
Gross margin at 19.0% matters most because margin, not demand, is deciding whether $757M in annual sales produces profit or another loss.
source: company earnings report, 2026
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What could go wrong
The top risk here is margin compression in remanufactured auto parts. It already showed up in Q3, when gross margin fell to 19.6% from 24.1% and the company cut its sales guide by $30M.
high
Gross margin stays under pressure
Gross margin fell 450 basis points to 19.6% in Q3. If that level persists, a low-margin parts business starts looking even lower quality.
This directly pressures profitability on $167.7M of quarterly sales.
high
Channel disruption hits revenue again
A competitor liquidation created a $17M headwind last quarter. That means external dislocation in the aftermarket can hit MPAA immediately.
About 10% of Q3 sales was exposed to that one event.
med
The multiple shrinks faster than the business recovers
MPAA trades at 86x trailing earnings versus a 12.6x peer average while guidance is moving lower. That gap leaves no room for another operational stumble.
If earnings do not rebound quickly, valuation compression can do the work for the bears.
med
Debt matters more when execution slips
Long-term debt is $108M, or 36% of capital. That is not catastrophic, but it does reduce flexibility if margins and cash flow stay weak.
A balance sheet graded C++ gives you less room to absorb a prolonged downturn.
The combined risk picture is simple: weaker margin, a $30M guide cut, and $108M of debt are a bad mix for a stock trading at 86x trailing earnings.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q4 FY2026 earnings report
Expected on or after June 8, 2026. The question is whether full-year results land inside the lowered $750M–$760M sales guide and $72M–$78M operating income target.
industry
older vehicle fleet tailwind
The bull case leans on the 12.8-year average U.S. vehicle age. If that demand tailwind is real, it needs to show up in segment sales again.
margin
gross margin recovery
Watch whether gross margin climbs back above 19.6%. Without a rebound, the earnings miss was not a one-quarter event.
balance sheet
cash flow versus $108M of debt
Operating cash flow covered 20.4% of debt last quarter. If liquidity tightens from here, the balance sheet stops being a side note and becomes the story.
Analyst rankings
earnings predictability
20 / 100
In human-speak, analysts do not trust the earnings cadence here. Expect more noise than consistency.
balance sheet strength
C++
That is a below-average balance sheet grade grade. You are not looking at a fortress balance sheet.
risk rank
5
This sits near the risky end of the scale. Low stability and weak predictability usually travel together.
source: institutional data
Institutional activity
institutional ownership data for MPAA is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$13
current price
n/a
target midpoint · n/a from current
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