Standard Motor Products Inc. Common Stock (SMP)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Standard Motor Products sells replacement parts for cars and trucks, and I like the aftermarket's basic demand: vehicles keep needing parts as they age. Still, FairStock's computed category is CYCLICAL — Auto Parts, meaning earnings follow the economic cycle, so I would not treat this as a bond-like staple. The filed figures show a business recovering from a weak patch. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $501.6M, net income $30.4M, and diluted EPS $1.33. That compares with fiscal Q2 2025 revenue of $493.9M, net income of $25.2M, and diluted EPS of $1.13. For FY2025, revenue was $1.8B, net income $41.3M, and diluted EPS $1.84, versus FY2024 revenue of $1.5B, net income $27.5M, and diluted EPS $1.24. But fiscal Q3 2025 posted a net loss of $4.3M and diluted EPS of -$0.19, a reminder of cyclical and quarterly volatility. Financial health is mixed: Piotroski F-score is 7/9 and TTM free cash flow is $87.2M, a 10.5% FCF yield. Yet D/E is 0.95 and Altman Z-score is 1.45, so leverage deserves attention. Returns are not spectacular: ROCE is 6.23%, while ROE is 12.53%. On valuation, at the 2026-10-13 close of $37.03, FairStock shows P/E 9.42, P/B 1.15, EV/EBITDA 7.11, PEG 0.46, and a Graham Number of $53.30, implying a 30.53% margin of safety. That is cheap enough to interest a Graham-style investor, but the cyclicality and debt mean I want the discount as compensation. This looks like a decent, cash-generative cyclical at a seemingly cheap price, not a wide-moat compounder.

In plain English: Standard Motor Products makes replacement parts for cars and trucks, mostly for when original parts wear out. The business looks reasonably profitable and generates steady cash, but sales are growing slowly and it uses a fair amount of debt. At the recent price near $37, the shares look cheap compared with the company's profits, cash generation, and net worth, though that low price comes with some risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer