SMP

Standard Motor Products

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Auto Parts

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

Standard Motor Products generates cash by manufacturing and distributing replacement auto parts into the aftermarket ecosystem, serving retailers, distributors, and repair channels that rely on recurring vehicle maintenance demand. The business model is volume-driven, benefiting from a broad product catalog and entrenched distribution relationships that create switching friction at the customer level. Its moat is not technological dominance but scale, brand presence within the aftermarket, and supply chain integration that supports consistent availability. Cash flow is tied to vehicle parc longevity and recurring replacement cycles, allowing the company to monetize ongoing maintenance needs rather than one-time vehicle sales.

 


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VALUATION

P/E

10.7

Market Cap ($M USD)

$829

Forward P/E

7.6

PEG

0.7

PRICE TO SALES

0.5

PRICE TO BOOK

1.2

EV / EBITDA

7.9

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

3.40%

Annual Payout

$1.32

Payout Ratio

66.00%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

21.40%

Financial Health & Profitability

Earnings Per Share

$3.59

Next Year EPS Growth Estimate

$4.92

Next Year Revenue Growth Estimate

3.30%

Return on Equity (ROE)

6.10%

FREE CASH FLOW

Operating Margin

7.80%

Debt-to-Equity

1

Piotroski F-Score

6

Altman Z-Score

2.3

Return on Invested Capital (ROIC)

4.70%

Current Ratio

2.1

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 10.7x trailing earnings and just 7.6x forward earnings with a PEG of 0.7, the stock is priced as if growth is either low quality or at risk of deterioration. The market cap of $829M against a Price/Sales of 0.5 and Price/Book of 1.2 signals clear deep value territory, yet the Altman Z-Score of 2.3 keeps it out of the financial safety zone and implies moderate balance sheet stress risk. With ROE at only 3.30% and ROIC at 4.70%, capital efficiency is weak, suggesting the low multiple is at least partially justified. This is not a pristine compounder; it is a statistically cheap cyclical with middling returns that the market is discounting for structural risk rather than ignoring outright.

AI Exposure / Tech Reliance

As an Auto Parts company in the Consumer Cyclical sector, SMP sits in a legacy-heavy industry that is increasingly influenced by vehicle electrification, digitization, and AI-enabled diagnostics. The company’s resilience will depend on its ability to align product offerings with evolving vehicle architectures and electronic systems rather than purely mechanical components. Firms in this space that adapt to advanced vehicle electronics can remain relevant, while those slow to innovate risk margin compression and commoditization.

The Bull Case

A value-oriented investor could justify buying this at 7.6x forward earnings with a PEG of 0.7, which implies growth is being undervalued relative to price. The Piotroski F-Score of 6 indicates fundamentally stable operations, not distress, while a 6.10% operating margin in a cyclical manufacturing business shows operating discipline. A Current Ratio of 2.1 suggests adequate short-term liquidity, and institutional ownership at 48.67% provides a base of professional sponsorship. Combined with a TTM Yield of 1 and a Dividend 5-Year Avg of 1, investors are being paid to wait while the company trades at just 0.5x sales, a level that already prices in skepticism.

The Bear Case

The red flags are not subtle. Debt/Equity of 7.80% introduces leverage risk in a cyclical industry, while an Altman Z-Score of 2.3 leaves little room for operational missteps. Short interest at 21.40% of float signals that a meaningful portion of the market is betting against the story, and the weak ROE of 3.30% confirms that shareholder capital is not being deployed efficiently. Even with a low forward multiple, the market may be discounting structural stagnation, especially if growth embedded in the PEG of 0.7 fails to materialize or margins compress further.

Market Sentiment & Smart Money

Short Interest %

4.10%

Analyst Consensus

1.5

Average Analyst Price Target

$48.67

Institutional Ownership %

81.70%

1-Year Beta

0.73

Insider Buying % (6 Mo)

5.00%%

Distance to 52-Week High

81.50%

Distance to 52-Week Low

175.30%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.