Standard Motor Products, Inc. (SMP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

XPEL, Inc.

Standard Motor Products, Inc.

Adient plc

Gentherm, Inc.

Dana, Inc.

Fox Factory Holding Corp.

Dorman Products, Inc.

LKQ Corp.

Visteon Corp.

Goodyear Tire & Rubber Co.

Why is Standard Motor Products, Inc. ?

High Management Efficiency with a high ROCE of 16.65%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.56 times

Poor long term growth as Net Sales has grown by an annual rate of 9.43% and Operating profit at 10.82% over the last 5 years

NET PROFIT(HY) Higher at USD 41.55 MM
RAW MATERIAL COST(Y) Fallen by -5.92% (YoY)
CASH AND EQV(HY) Highest at USD 109.07 MM

With ROCE of 11.72%, it has a expensive valuation with a 1.06 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 12.63%, its profits have risen by 1.6% ; the PEG ratio of the company is 4.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Standard Motor Products, Inc. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Standard Motor Products, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Standard Motor Products, Inc.

26.14%

0.91

34.25%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.68%

EBIT Growth (5y)

8.17%

EBIT to Interest (avg)

34.18

Debt to EBITDA (avg)

1.56

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

1.47

Tax Ratio

26.53%

Dividend Payout Ratio

67.45%

Pledged Shares

Institutional Holding

95.90%

ROCE (avg)

16.65%

ROE (avg)

12.88%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.27

EV to EBIT

7.81

EV to EBITDA

6.30

EV to Capital Employed

1.15

EV to Sales

0.80

PEG Ratio

0.32

Dividend Yield

3.16%

ROCE (Latest)

14.69%

ROE (Latest)

12.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

NET PROFIT(HY)

At USD 28.17 MM has Grown at 689.89%

ROCE(HY)

Highest at 12.57%

RAW MATERIAL COST(Y)

Fallen by -6.19% (YoY

CASH AND EQV(HY)

Highest at USD 131.24 MM

DIVIDEND PER SHARE(HY)

Highest at USD 6.16

-6What is not working for the Company

INTEREST(HY)

At USD 16.71 MM has Grown at 34.95%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.16 times

Here's what is working for Standard Motor Products, Inc.

Net Profit

At USD 28.17 MM has Grown at 689.89%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 131.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at USD 6.16

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -6.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Standard Motor Products, Inc.

Interest

At USD 16.71 MM has Grown at 34.95%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 6.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio