PARTS iD, Inc. (ID)

PARTS iD, Inc. (ID) Consumer Business Overview

PARTS iD, Inc. is a digital commerce company specializing in automotive parts and accessories, offering a diverse product range through its online platforms. Targeting a broad spectrum of vehicle and recreational equipment categories, the company navigates the competitive specialty retail landscape with a focus on e-commerce.

What Is the Investment Thesis for ID?

PARTS iD, Inc. presents a focused investment opportunity within the digital commerce space, specifically targeting the automotive and recreational parts and accessories market. With a negative P/E ratio of -0.09 and a negative profit margin of -5.3%, the company's current financial performance raises concerns. However, its gross margin of 18.7% indicates potential for improved profitability through optimized operations and strategic pricing. Key growth catalysts include expanding its private label offerings and enhancing its e-commerce platforms to improve customer experience. Risks include intense competition and the need to efficiently manage inventory and logistics. Investors should closely monitor the company's ability to achieve sustainable profitability and gain market share in a competitive landscape.

Based on FMP financials and quantitative analysis

ID Key Highlights

• Market capitalization of $2.10M reflects the company's small size and potential volatility.
• P/E ratio of -0.09 indicates the company is currently not profitable.
• Profit margin of -5.3% highlights the need for improved cost management and revenue generation.
• Gross margin of 18.7% suggests potential for profitability with optimized pricing and cost control.
• Beta of -0.21 indicates the stock is less volatile than the market, potentially offering some downside protection.

Who Are ID's Competitors?

ID is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ID's Key Strengths?

• Specialized online platforms catering to niche markets.
• Wide selection of automotive and recreational parts and accessories.
• Established brand reputation and customer loyalty.
• Proprietary e-commerce technology and infrastructure.

What Are ID's Weaknesses?

• Negative profitability and low profit margins.
• Reliance on third-party suppliers for inventory.
• Intense competition from larger online retailers.
• Limited brand awareness compared to established players.

What Could Drive ID Stock Higher?

• Launch of new private label product lines to improve gross margins.
• Enhancement of e-commerce platforms to drive sales and customer loyalty.
• Strategic partnerships with manufacturers to expand product offerings.

What Are the Key Risks for ID?

• Financial-distress signal — its Altman Z-Score of -4.83 sits in the distress zone (elevated bankruptcy risk).
• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• Insider selling — insiders were net sellers of roughly $3.1M recently.
• Economic downturn affecting consumer spending on discretionary items.
• Intense competition from larger online retailers.
• Supply chain disruptions and rising raw material costs.
• Negative profitability and low profit margins.

What Are the Growth Opportunities for ID?

• Expansion of Private Label Offerings: PARTS iD can increase profitability by expanding its private label product lines. The private label market in the automotive sector is estimated to be worth billions of dollars annually. By offering high-quality private label alternatives, PARTS iD can improve its gross margins and attract price-conscious customers. This initiative can be implemented within the next 1-2 years.
• Enhancement of E-Commerce Platforms: Improving the user experience on its e-commerce platforms is crucial for driving sales and customer loyalty. Investments in website design, mobile optimization, and personalized product recommendations can lead to higher conversion rates and repeat purchases. The e-commerce market for automotive parts is projected to grow significantly in the coming years, presenting a substantial opportunity for PARTS iD. This is an ongoing effort.
• Strategic Partnerships with Manufacturers: Forming strategic partnerships with automotive and recreational equipment manufacturers can provide PARTS iD with access to exclusive products and distribution channels. These partnerships can also enhance the company's credibility and brand reputation. The timeline for establishing such partnerships is approximately 1-2 years.
• Geographic Expansion: PARTS iD can explore opportunities to expand its operations into new geographic markets. While the company primarily serves the US market, there is potential to expand into Canada and other international markets. This expansion can be achieved through localized websites and marketing campaigns. The timeline for geographic expansion is approximately 2-3 years.
• Leveraging Data Analytics: Utilizing data analytics to better understand customer preferences and buying patterns can enable PARTS iD to optimize its product offerings and marketing strategies. By analyzing customer data, the company can identify emerging trends and tailor its product selection to meet evolving customer needs. This is an ongoing process.

What Opportunities Does ID Have?

• Expansion of private label offerings.
• Enhancement of e-commerce platforms and customer experience.
• Strategic partnerships with manufacturers.
• Geographic expansion into new markets.

What Threats Does ID Face?

• Economic downturn affecting consumer spending.
• Supply chain disruptions and rising raw material costs.
• Increasing competition from online and brick-and-mortar retailers.
• Changes in consumer preferences and buying patterns.

What Are ID's Competitive Advantages?

• Specialized online platforms catering to niche markets.
• Wide selection of automotive and recreational parts and accessories.
• Proprietary e-commerce technology and infrastructure.
• Established brand reputation and customer loyalty.

What Does ID Do?

Founded in 2008 and based in Cranbury, New Jersey, PARTS iD, Inc. has established itself as a digital commerce company focused on the specialty retail sector. The company operates through its proprietary platforms, including www.carid.com, www.truckid.com, www.motorcycleid.com, www.powersportsid.com, www.camperid.com, www.boatid.com, www.recreationid.com, and www.toolsid.com, offering a comprehensive selection of automotive parts and accessories. Its product range encompasses automobile accessories, wheels and tires, performance parts, lighting and repair parts, as well as parts and accessories for semi-trucks, motorcycles, powersports, RVs/campers, boats, outdoor sports and camping gear, and tools. PARTS iD sells both private label and branded products, catering to a diverse customer base seeking specialized components and accessories for their vehicles and recreational equipment. The company's business model centers on providing a wide array of products through a user-friendly online shopping experience, aiming to capture a significant share of the automotive and recreational parts market. PARTS iD faces competition from other online retailers and brick-and-mortar stores in the automotive and recreational sectors.

What Products and Services Does ID Offer?

• Sells automotive parts and accessories online.
• Offers parts for cars, trucks, motorcycles, powersports vehicles, RVs, and boats.
• Provides accessories for outdoor sports and camping gear.
• Sells both private label and branded products.
• Operates through multiple online platforms, each targeting a specific vehicle or product category.
• Provides tools and equipment for automotive repair and maintenance.

How Does ID Make Money?

• Sells products directly to consumers through its e-commerce platforms.
• Generates revenue from the sale of automotive parts, accessories, and related products.
• Manages inventory and logistics to fulfill customer orders.
• Utilizes marketing and advertising to attract customers to its online platforms.

What Industry Does ID Operate In?

PARTS iD, Inc. operates within the competitive specialty retail industry, which is undergoing a significant shift towards e-commerce. The automotive parts and accessories market is driven by factors such as the aging vehicle fleet, increasing vehicle customization trends, and the growing popularity of outdoor recreational activities. The industry faces challenges including supply chain disruptions, rising raw material costs, and intense competition from both online and brick-and-mortar retailers. PARTS iD's success depends on its ability to differentiate itself through product selection, customer service, and efficient online operations.

Who Are ID's Key Customers?

• Automotive enthusiasts and DIY mechanics.
• Owners of trucks, motorcycles, powersports vehicles, RVs, and boats.
• Individuals seeking accessories for outdoor sports and camping.
• Customers looking for tools and equipment for automotive repair.

ROE 87%Key Financial Metrics

Return on equity for PARTS iD, Inc. stands at 87.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -69.2%, showing how much profit it generates from its asset base. A current ratio of 0.22 means current liabilities exceed short-term assets, a liquidity point worth watching.

How PARTS iD, Inc. Is Valued

PARTS iD, Inc. carries a market capitalization of $2.10M, placing it in the micro-cap category. Relative to its peer group, ID's quantitative score of 38/100 is below the peer average of 61/100.

F-Score 3/9Financial Health

PARTS iD, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -4.83 places it in the distress zone, a signal of elevated financial risk.

Net sellingInsider Activity

The most recent 12 insider filings for PARTS iD, Inc. break down as 11 sales and 1 purchases. On net that is roughly 33.7M shares disposed (about $3.1M), a signal worth weighing alongside the fundamentals.

ID Financials

ID Latest News

ID Analyst Consensus

ID MoonshotScore

PARTS iD, Inc. Consumer Cyclical Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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