Motorcar Parts of America, Inc.
- Open
- 14.06
- Day high
- 14.29
- Day low
- 13.61
- Prev close
- 14.00
- Volume
- 82K
- Mkt cap
- $264M
- P/E (TTM)
- 21.1
- EPS (TTM)
- $0.65
- P/B
- 1.0
- P/S
- 0.3
- Yield
- —
- Per share
- —
Motorcar Parts of America, Inc. (MPAA) is a Consumer Cyclical company listed on NASDAQ. The stock is up 23% over the past year.
Motorcar Parts of America, Inc. (MPAA) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MPAA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 8, 2026 | $0.11 | $0.42 | +281.8% | $212M | +20.6% |
| Jun 9, 2025 | $0.20 | $0.28 | +40.0% | $193M | +7.2% |
| Aug 8, 2024 | $0.07 | $-0.33 | -571.4% | $170M | -1.5% |
| Jun 11, 2024 | $0.16 | $0.06 | -62.5% | $189M | -4.6% |
| Feb 9, 2024 | $0.08 | $-0.27 | -437.5% | $172M | -13.5% |
| Nov 9, 2023 | $0.17 | $0.48 | +182.4% | $197M | +5.5% |
| Jun 13, 2023 | $0.42 | $-0.05 | -111.9% | $195M | +3.7% |
| Feb 9, 2023 | $0.55 | $0.21 | -61.8% | $152M | -19.1% |
| Nov 9, 2022 | $0.42 | $0.12 | -71.4% | $173M | -1.7% |
| Jun 14, 2022 | $0.47 | $0.25 | -46.8% | $164M | +8.9% |
| Feb 9, 2022 | $0.32 | $0.60 | +87.5% | $162M | +15.2% |
| Jun 14, 2021 | $0.64 | $0.74 | +15.6% | $168M | — |
MPAA insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 23, 2026 | Lee David Sungofficer: CFO | Option | 5,577 | — |
| Jun 23, 2026 | Lee David Sungofficer: CFO | Option | 10,904 | — |
| Jun 23, 2026 | Schooner Douglas Earlofficer: Chief Manufacturing Officer | Option | 2,169 | — |
| Jun 23, 2026 | SELWYN JOFFEdirector, officer: President, CEO & Chairman | Grant | 133,977 | — |
| Jun 23, 2026 | SELWYN JOFFEdirector, officer: President, CEO & Chairman | Option | 51,501 | — |
| Jun 23, 2026 | Stone Juliet Lynnofficer: VP, Gen Counsel and Secretary | Option | 1,725 | — |
| Jun 23, 2026 | Shah Kamleshofficer: Chief Accounting Officer | Option | 3,882 | — |
| Jun 23, 2026 | Burlingame Glenn Danielofficer: VP, General Counsel & Sec. | Grant | 13,465 | — |
| Jun 23, 2026 | Shah Kamleshofficer: Chief Accounting Officer | Option | 2,789 | — |
| Jun 23, 2026 | Stone Juliet Lynnofficer: VP, Gen Counsel and Secretary | Grant | 2,244 | — |
| Jun 23, 2026 | Schooner Douglas Earlofficer: Chief Manufacturing Officer | Option | 4,589 | — |
| Jun 23, 2026 | Lee David Sungofficer: CFO | Grant | 28,366 | — |
| Jun 23, 2026 | Schooner Douglas Earlofficer: Chief Manufacturing Officer | Grant | 11,939 | — |
| Jun 23, 2026 | Stone Juliet Lynnofficer: VP, Gen Counsel and Secretary | Option | 3,717 | — |
| Jun 23, 2026 | SELWYN JOFFEdirector, officer: President, CEO & Chairman | Option | 14,931 | — |
Source: MPAA SEC Form 4 filings, latest Jun 23, 2026. For informational purposes only — not investment advice.
See the full MPAA insider & 13F page →Motorcar Parts of America, Inc. company profile
Overview
Motorcar Parts of America, Inc. (NASDAQ:MPAA) is a leading manufacturer and remanufacturer of automotive replacement parts, founded in 1968 and headquartered in Torrance, California. The company has evolved from its origins as a traditional automotive parts supplier into a diversified operation serving both the traditional internal combustion engine aftermarket and the emerging electric vehicle testing market. With over five decades of experience, MPAA operates multiple manufacturing facilities across North America, Mexico, and Asia, serving major automotive retail chains, warehouse distributors, and original equipment manufacturers through their aftermarket and warranty replacement programs.
Business
Motorcar Parts of America operates in the automotive aftermarket industry, which provides replacement parts for vehicles after they leave the original manufacturer's warranty period. The company's business spans four primary product categories that serve the critical maintenance needs of aging vehicle fleets. Rotating Electrical Products represent the company's largest segment, accounting for approximately 65% of total revenue. This category includes alternators and starters - essential components that generate and store electrical power in vehicles. Alternators convert mechanical energy from the engine into electrical energy to power the vehicle's electrical systems and recharge the battery, while starters are electric motors that initiate engine operation. These are non-discretionary replacement parts, meaning vehicle owners must replace them when they fail for the vehicle to function. Brake-Related Products constitute the company's fastest-growing segment at roughly 21-24% of revenue, including brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. Brake calipers house the brake pads and use hydraulic pressure to squeeze them against the rotors to stop the vehicle. Brake boosters amplify the force applied by the driver's foot to the brake pedal. These safety-critical components require regular replacement due to wear and are subject to strict performance standards. Wheel Hub Assemblies and Bearings comprise approximately 7-11% of revenue. Wheel hubs are the mounting points where wheels attach to vehicles and contain bearings that allow smooth wheel rotation. These components endure constant stress and require replacement as vehicles age, particularly in harsh driving conditions. Diagnostic and Testing Equipment represents the company's newest and most technologically advanced segment at about 3-4% of current revenue. This includes sophisticated test systems for electric vehicle powertrains, electric motor test systems, e-axle test systems, advanced power emulators, and charging unit test systems. The company also provides testing services for traditional automotive components like alternators, starters, and turbochargers. Management has set an ambitious goal of reaching $100 million in diagnostic equipment sales within three years, which would represent significant portfolio diversification.
Revenue model
Motorcar Parts of America generates revenue primarily through product sales to three distinct customer channels. The company sells finished replacement parts to automotive retail chain stores and warehouse distributors, who then resell these parts to consumers and independent repair shops. Additionally, MPAA supplies various automobile manufacturers for their aftermarket programs and warranty replacement programs, providing parts that carry the original equipment manufacturer's branding. The company's business model benefits from several favorable market dynamics. The non-discretionary nature of automotive replacement parts creates consistent demand - when critical components like alternators, starters, or brake systems fail, vehicle owners must replace them for safety and functionality. This demand is further supported by the aging U.S. vehicle fleet, with the average vehicle age now reaching 12.8 years, and the fact that 98.8% of vehicles still rely on internal combustion engines or hybrid systems that require traditional replacement parts. Margin enhancement factors include the company's ability to leverage fixed manufacturing costs across higher production volumes, implement periodic price increases to offset inflation and material cost pressures, and benefit from operational efficiencies gained through facility consolidations and process improvements. The company's global manufacturing footprint, spanning facilities in North America, Mexico, and Malaysia, provides cost advantages and supply chain flexibility. Margin pressure factors include commodity price fluctuations for raw materials like copper and steel, competitive pricing pressure from other aftermarket suppliers, higher interest rates that increase borrowing costs, and potential tariff impacts on imported components. The company also faces the long-term challenge of electric vehicle adoption, which could eventually reduce demand for traditional rotating electrical products, though this transition is expected to occur gradually over many years. The diagnostic equipment business operates on a different model, providing specialized testing services and equipment sales to automotive manufacturers, electric vehicle developers, and research institutions, typically commanding higher margins due to the technical expertise and specialized nature of these solutions.
Competitive moat
Motorcar Parts of America operates in a moderately competitive aftermarket parts industry with several sources of competitive advantage, though its moat is not exceptionally deep. The company's primary competitive strengths lie in its established relationships with major automotive retail chains and warehouse distributors, which provide stable distribution channels that are difficult for new entrants to replicate quickly. These relationships, built over decades, create switching costs for customers who rely on MPAA's broad product portfolio and reliable supply chain. The company's manufacturing scale and global footprint provide cost advantages, particularly in remanufacturing operations where MPAA can leverage specialized equipment and processes across multiple facilities. The remanufacturing process requires significant technical expertise and quality control systems to restore used components to like-new performance standards, creating some barriers to entry for smaller competitors. However, the automotive aftermarket is inherently competitive with numerous established players including Cardone Industries, Remy International, and various overseas manufacturers. Product differentiation is limited since replacement parts must meet standardized specifications, making price and service the primary competitive factors. The company's Quality-Built brand provides some differentiation, but brand loyalty in replacement parts is generally weaker than in consumer goods. The emerging diagnostic equipment business represents a potentially stronger competitive position due to the specialized technical expertise required for electric vehicle testing systems. This segment serves a smaller, more specialized customer base and requires significant engineering capabilities that create higher barriers to entry. Long-term competitive threats include the gradual shift toward electric vehicles, which will eventually reduce demand for traditional rotating electrical products, and the potential for original equipment manufacturers to capture more aftermarket sales through direct-to-consumer channels or extended warranty programs. Additionally, the company faces ongoing pressure from low-cost overseas manufacturers, particularly from China, though recent tariff policies have provided some protection.
Risks & safety
The company exhibits a moderate margin of safety with mixed financial health indicators that require careful monitoring. Liquidity and Solvency: - Current ratio of 1.45 indicates adequate short-term liquidity coverage - Quick ratio of 0.39 shows heavy reliance on inventory for liquidity - Cash position of only $10.8 million is relatively low for a $950 million asset base - Total debt-to-equity ratio of 0.77 represents moderate leverage - Recent positive free cash flow of $33.7 million demonstrates improving cash generation Valuation Metrics: - Price-to-earnings ratio of 16.4 appears reasonable for current profitability levels - Price-to-book ratio of 0.57 suggests potential undervaluation relative to asset base - EV/EBITDA of 4.2 indicates attractive valuation for current earnings power - Graham number analysis suggests potential value opportunity Other Considerations: - Working capital management has improved significantly with recent debt reduction of $30.3 million - Gross margin expansion from 17.5% to 24.1% demonstrates operational improvement - Interest expense burden remains elevated due to higher rate environment - Cyclical nature of automotive aftermarket creates earnings volatility risk
Recent development
Over the past several years, Motorcar Parts of America has undergone significant strategic transformation focused on operational efficiency and portfolio diversification. The company completed a major facility consolidation program, relocating operations to achieve approximately $7 million in annual cost savings while improving manufacturing efficiency. This included opening a new wheel hub manufacturing facility in Malaysia and expanding brake caliper production capacity. The most significant strategic pivot has been the company's aggressive expansion into brake-related products, transforming this segment from a minor category to the second-largest revenue contributor at 21-24% of sales. Management has set ambitious targets to reach $300 million in brake-related sales over several years, positioning the company as a major player in brake calipers, pads, and rotors. This diversification reduces dependence on rotating electrical products and provides access to higher-growth market segments. The company has also made substantial investments in diagnostic and testing equipment for electric vehicles, establishing a testing center in Detroit and developing sophisticated test systems for EV powertrains, electric motors, and charging systems. Management projects this business will reach $100 million in sales within three years, representing a significant new revenue stream that leverages the company's technical expertise while addressing the automotive industry's electrification trend. Geographic expansion has been another key focus, with growing sales in the Mexican market representing an estimated $100 million opportunity. The company has expanded its manufacturing footprint in Mexico and is building relationships with local distributors to capture market share as the Mexican automotive aftermarket consolidates and shifts toward finished replacement parts. Recent operational improvements include implementing working capital management initiatives that have generated substantial cash flow improvements, enabling debt reduction of over $50 million across recent quarters. The company has also accelerated new product introductions, targeting 800 new part numbers annually to expand market coverage and meet evolving customer demands.
MPAA company profile · for informational purposes only — not investment advice.
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