Motorcar Parts of America, Inc. (MPAA) AI Stock Analysis

Headquartered in Torrance, California, Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes replacement parts for heavy-duty trucks, industrial equipment, marine vessels, and agricultural applications. Its primary product lines include rotating electrical components like alternators and starters, along with wheel hub assemblies, bearings, and brake-related items including calipers, boosters, rotors, pads, and master cylinders. The company has also expanded into advanced test solutions and diagnostic equipment for electric vehicle powertrain development, offering electric motor test systems, e-axle test systems, and charging unit test systems across North America.

Over the five-year period from FY2021 to FY2026, the company achieved a revenue CAGR of 7.9%. Annual revenue grew from $650.3M in FY2022 to $789.8M in FY2026, posting 4.3% growth in FY2026. Gross margin expanded from 18.1% in FY2022 to 20.2% in FY2026, while operating margin rose to 7.2%. After posting net income losses of -$4.2M in FY2023, -$49.2M in FY2024, and -$19.5M in FY2025, net income rebounded to $12.4M in FY2026. For the latest quarter ended June 30, 2026, quarterly revenue fell 10.8% year-over-year and quarterly earnings declined 18.2%, leaving trailing twelve-month revenue at $769.5M and an operating margin of 2.8%.

As of June 30, 2026, the company held $21.4M in cash and short-term investments against total debt of $228.7M, resulting in net debt of $207.3M. Total assets stood at $1.01B, shareholders' equity was $253.0M, and the current ratio was 1.44, with a debt-to-equity ratio of 0.90. In FY2026, operating cash flow generated $19.2M and free cash flow was $22.9M. Capital expenditures used $3.7M, while share buybacks totaled $11.4M.

At a last close of $10.32, Motorcar Parts of America trades at a forward P/E of 9.3x, which is below the 14.1x median for its US-listed Consumer Cyclical peers. Its enterprise value to EBITDA ratio is 6.8x compared to the peer median of 11.1x, and its price-to-sales ratio is 0.3x versus the peer median of 0.7x. Over the past year, the stock dropped 35.7%, while the S&P 500 benchmark returned 16.8%. Over five years, the stock decreased 47.1% compared to an 83.0% gain for the benchmark.

All 3 covering analysts rate the company a Strong Buy, with zero Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $18.00, representing a 74.4% premium over the last close of $10.32. For the current fiscal year ending March 31, 2027, consensus estimates project revenue of $789.7M and EPS of $1.67, implying EPS growth of 105.4%. The company beat EPS estimates in 1 of the last 4 quarters, and the next earnings date is November 9, 2026.

This page is an AI-written research summary of Motorcar Parts of America, Inc. (MPAA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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