Motorcar Parts of America Inc logo

Motorcar Parts of America Inc(MPAA)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$10.57
09/17/2026
(24-hour delay)

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*as per simulation (see disclosures)
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Upturn Advisory & Investor View for MPAA

09/17/2026: MPAA (1-star) is currently NOT-A-BUY. Pass it for now.

Motorcar Parts of America is a specialized supplier of remanufactured automotive parts, focusing on rotating electrical and braking components. The company has a stable position serving major retail automotive chains, benefiting from the growing age of the U.S. vehicle fleet. Its growth story hinges on maintaining operational efficiency and cost-effective distribution within a mature, repair-driven market. Primary risks include significant customer concentration, exposure to commodity price volatility, and the long-term industry transition toward electric vehicles. The stock is generally suited for value-oriented investors willing to navigate sector-specific volatility, as it lacks a dividend and faces competitive pressures, requiring close monitoring of supply chain costs and retail partnership health.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth potential is limited by the mature nature of the automotive aftermarket and the cyclical nature of demand.
Momentum investorWeak fitThe stock often lacks the strong, sustained price trend required for momentum strategies.
Value investorStrong fitThe stock may trade at lower multiples, appealing to those seeking potential turnaround or intrinsic value.
Dividend investorWeak fitThe company does not pay a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorWeak fitThe stock exhibits significant volatility and operational risks related to the automotive sector.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock price is susceptible to sharp fluctuations based on industry news and financial results.
Valuation riskMediumInvestors must assess whether the current market valuation accurately reflects the company's long-term earnings potential.
Competition risk (Automotive Parts Industry)HighIntense pricing pressure from competitors and low-cost manufacturing imports creates constant margin pressure.
Business qualityMediumThe business relies on intensive capital and inventory management, making it vulnerable to operational inefficiencies.
Dividend incomeLow / noneThe lack of dividend payments means investors are solely dependent on capital appreciation.
Execution riskMedium / highSuccessfully managing the complex logistics and remanufacturing processes is vital to maintaining retailer contracts.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -57.21%
Avg. Invested days 29
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/17/2026

Upturn Scorecard

Upturn Star Rating

MPAA receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

MPAA has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2026 versus FY2025, strong earnings growth (+163.7%) is partially offset by soft cash generation (FCF margin 2.9%), moderate revenue growth (+4.3%), soft profitability (net margin 1.6%).

Financial Health Rating

MPAA's financial health is supported by solid cash strength, including free-cash-flow generation (2.9% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

Earnings growth is MPAA's strongest growth driver at +163.7% FY2026 versus FY2025 (strong, 5 stars). By comparison, while revenue growth (+4.3%, moderate) and free-cash-flow growth (-44.1%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

Institutional ownership is 106.2% and approximately 76.9% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 6.71% supports management-shareholder alignment.

Top 5 Institutional Investors

Private Capital Management, LLC 12.41%
325 Capital LLC 10.66%
Donald Smith & Co Inc 6.54%
Dimensional Fund Advisors, Inc. 6.19%
BlackRock Inc 5.21%

Unit Economics (Per $1K Revenue)

MPAA generates approximately $202 of gross profit, $72 of operating income, and $29 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

Effective Tax Rate: 38.85%

Quantitative Style Profile

MPAA has a liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedSmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 201.64M USD
Price to earnings Ratio -
1Y Target Price 18
Price to earnings Ratio -
1Y Target Price 18
Volume (30-day avg) 124.4K shares
Beta 1.16
52 Weeks Range 9.29 - 18.12
Updated Date 09/17/2026
52 Weeks Range 9.29 - 18.12
Updated Date 09/17/2026
Dividends yield (FY) -
Basic EPS (TTM) -0.24

How Company Makes Money

Business areaWhat it includesRetail investor read
Rotating ElectricalRemanufactured alternators and starters for the aftermarket.The core of their business is fixing used car parts so they can be sold again as cheaper replacements.
Braking & OtherBrake calipers, boosters, and wheel hubs.They sell essential safety components that need regular replacement as cars age.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE -
Forward PE 9.29
Enterprise Value 411.11M
Price to Sales(TTM) 0.26
Enterprise Value 411.11M
Price to Sales(TTM) 0.26
Enterprise Value to Revenue 0.53
Enterprise Value to EBITDA 6.77
Shares Outstanding 18.93M
Shares Floating 14.55M
Shares Outstanding 18.93M
Shares Floating 14.55M
Percent Insiders 6.71
Percent Institutions 106.19

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Motorcar Parts of America Inc

Exchange NASDAQ
Headquarters Torrance, CA, United States
IPO Launch date 1994-03-23
Chairman, President & CEO Mr. Selwyn H. Joffe CPA
Sector Consumer Cyclical
Industry Auto Parts
Full time employees 5600
Full time employees 5600

Motorcar Parts of America, Inc. operates as a supplier of automotive aftermarket non-discretionary replacement parts and test solutions and diagnostic equipment in the United States. It operates through three segments: Hard Parts, Test Solutions and Diagnostic Equipment, and Heavy Duty. The company offers light duty rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also provides test solutions and diagnostic equipment that include applications for combustion engine vehicles, such as bench-top testers for alternators and starters; equipment for the pre- and post-production of electric vehicles; and software emulation of power systems applications for the electrification of various forms of transportation. In addition, the company offers heavy duty parts, including non-discretionary automotive aftermarket replacement hard parts for heavy-duty truck, industrial, marine, and agricultural applications. It sells its products to automotive retail chain stores and warehouse distributors in North America, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs. The company provides its products under the Private Label, Quality-Built, Pure Energy, D&V Electronics, Dixie Electric, and DelStar brands. The company was formerly known as Motorcar Parts & Accessories Inc and changed its name to Motorcar Parts of America, Inc. in January 2004. Motorcar Parts of America, Inc. was incorporated in 1968 and is headquartered in Torrance, California.