Standard Motor Products, Inc. (SMP)
Valuation Overview•Is Standard Motor Products, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 52/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
SMP demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company demonstrates solid revenue growth (9.3% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 10.1%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $451.2M | +22.4% | +9.3% | +9.7% | +6.3% | |
| EBITDA | $45.7M | — | +11.1% | — | — | |
| Net Income | $17.1M | -22.9% | -17.3% | — | -1.1% | |
| EPS (Diluted) | $0.75 | -23.7% | -17.7% | -6.1% | -0.8% | |
| Free Cash Flow | -$48.7M | -42.7% | — | -25.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 30.6% | 28.8% | 28.4% | 28.7% |
| Operating Margin | 10.1% | 10.1% | 10.2% | 10.1% |
| Net Margin | 2.5% | 3.5% | 4.6% | 4.6% |
| FCF Margin | 2.2% | 3.9% | 2.5% | 4.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.73 | $0.82 | +12.3% | ||
| Q1'26 | $0.45 | $0.56 | +24.4% | ||
| Q4'25 | $1.14 | $1.36 | +19.3% | ||
| Q3'25 | $0.97 | $1.29 | +33.0% | ||
| Q2'25 | $0.44 | $0.81 | +84.1% | ||
| Q1'25 | $0.37 | $0.47 | +27.0% | ||
| Q4'24 | $1.09 | $1.28 | +17.4% | ||
| Q3'24 | $0.78 | $0.98 | +25.6% |
Total return is +32.8% (1Y), outperforming the benchmark by +7.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +8.1% | -1.2% | — |
| 1Y | +32.8% | +7.8% | +4.2% |
| 3YCAGR | +5.2% | -15.4% | +9.8% |
| 5YCAGR | +0.2% | -13.2% | +12.9% |
| 10YCAGR | +2.4% | -11.4% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Standard Motor Products, Inc. (SMP) valuation, health, and returns.
Based on peer relative multiples, Standard Motor Products, Inc. appears Cheap versus peers compared to industry peers.
Standard Motor Products, Inc. has multiple valuation anchors: Peer Relative Fair Value: $49.59. A convergence of these signals offers higher conviction.
Standard Motor Products, Inc. displays fair financial health with a composite quality score of 52/100, supported by a Altman Z-Score of 1.9 (grey zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 10.8%.
Standard Motor Products, Inc. pays a 3.1% dividend yield, covered by a 66% payout ratio with 1 years of growth, supplemented by a 0.0% buyback yield.
Standard Motor Products, Inc.'s current growth trajectory is Accelerating. The company achieved +22.4% 1Y revenue growth and -23.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +9.3%.
Wall Street consensus is Buy based on 12 analysts, beating EPS expectations in 83% of recent quarters with a 9-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Standard Motor Products, Inc. include: -23.1% 1-year max drawdown. Volatility risk is characterized by a beta of 0.74x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.