Motorcar Parts of America, Inc. (MPAA)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Motorcar Parts of America, Inc. (MPAA) trades at $14.95 with AI Score 41/100 (Grade C). Motorcar Parts of America, Inc. supplies aftermarket auto parts and EV testing solutions. Market cap: $282.93M, Sector: Consumer cyclical.
Last analyzed: May 9, 2026MPAA stock analysis for 2026: Analysts have set a consensus price target of $18.33 for Motorcar Parts of America, Inc., suggesting 22.6% upside from the current price of $14.95. The AI MoonshotScore is 41/100, indicating a neutral outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
MPAA: the 1 perspectives are evenly split.
Motorcar Parts of America, Inc. (MPAA) Consumer Business Overview
Motorcar Parts of America, Inc. (MPAA) manufactures and distributes aftermarket auto parts, including rotating electrical products and brake components, primarily in North America. The company is expanding into electric vehicle testing solutions, positioning itself to capitalize on the growing EV market while maintaining its traditional automotive business.
What Is the Investment Thesis for MPAA?
Motorcar Parts of America presents a mixed investment case. The company's established position in the aftermarket auto parts industry provides a stable revenue base, supported by a P/E ratio of 7.65. Growth catalysts include the expansion into EV testing solutions, which could drive revenue growth as the EV market expands. With a market cap of $0.23 billion and free cash flow of $0.01 billion, the company exhibits financial stability. However, the company's low profit margin of 0.3% and gross margin of 19.2% suggest operational inefficiencies. Key risks include competition in the aftermarket auto parts industry and the successful execution of its EV strategy. Investors should monitor the company's ability to improve profitability and capitalize on its EV testing solutions.
Based on FMP financials and quantitative analysis
MPAA Key Highlights
- Market capitalization of $0.23 billion, reflecting its size within the auto parts industry.
- P/E ratio of 7.65, indicating a potentially undervalued stock compared to its earnings.
- Gross margin of 19.2%, highlighting the profitability of its core operations.
- Free cash flow of $0.01 billion, demonstrating its ability to generate cash.
- Beta of 1.28, suggesting higher volatility compared to the overall market.
Who Are MPAA's Competitors?
MPAA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| GPC Genuine Parts Company | $102.03 | -0.23% | $14.19B | 50 |
| AAP Advance Auto Parts, Inc. | $61.29 | +1.11% | $3.70B | 48 |
| AZO AutoZone, Inc. retails and distributes automotive replacement parts and accessories. The company | $3069.47 | -0.39% | $50.24B | 52 |
| INVZ Innoviz Technologies Ltd. | $0.63 | -2.84% | $138.73M | 68 |
| HYLN Hyliion Holdings Corp. | $7.72 | +2.80% | $1.38B | 66 |
| SES SES AI Corporation | $1.09 | +1.87% | $397.22M | 62 |
| TMH Toyota Motor Corporation ADRhedged | $48.96 | +0.00% | $3.61B | 60 |
| HLKHF HELLA GmbH & Co. KGaA | $94.52 | +0.00% | $10.50B | 48 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are MPAA's Key Strengths?
- Established presence in the automotive aftermarket.
- Diversified product portfolio.
- Expansion into EV testing solutions.
- Remanufacturing capabilities for cost efficiency.
What Are MPAA's Weaknesses?
- Low profit margin.
- Dependence on North American market.
- Exposure to cyclical automotive industry.
- Limited brand recognition compared to larger competitors.
What Could Drive MPAA Stock Higher?
- Expansion of EV testing solutions business, driving revenue growth.
- Strategic partnerships with automotive manufacturers for aftermarket programs.
- Potential acquisitions to expand product offerings and market share.
- Increased demand for remanufactured parts due to sustainability trends.
What Are the Key Risks for MPAA?
- Intense competition in the automotive aftermarket, impacting pricing and market share.
- Fluctuations in raw material costs, affecting profitability.
- Technological changes in the automotive industry, requiring continuous innovation.
- Economic downturns affecting consumer spending on auto parts.
- Supply chain disruptions impacting production and distribution.
What Are the Growth Opportunities for MPAA?
- Expansion of EV Testing Solutions: The growing electric vehicle market presents a significant growth opportunity for Motorcar Parts of America. As EV adoption increases, the demand for testing and diagnostic equipment for EV powertrains will also rise. The company's existing portfolio of electric motor test systems, e-axle test systems, and charging unit test systems positions it to capture a share of this market. The global EV testing market is projected to reach billions of dollars in the coming years, offering substantial revenue potential for MPAA.
- Penetration of the Heavy-Duty Truck Market: Motorcar Parts of America has an opportunity to further penetrate the heavy-duty truck market with its replacement parts. This segment of the automotive aftermarket is characterized by higher average order values and longer replacement cycles, offering a stable revenue stream. By expanding its product offerings and distribution network for heavy-duty truck parts, the company can increase its market share and revenue in this segment. This includes parts for industrial, marine and agricultural applications.
- Geographic Expansion in North America: While Motorcar Parts of America primarily operates in North America, there is potential for further geographic expansion within the region. By targeting underserved markets and expanding its distribution network, the company can increase its sales and market share. This could involve establishing new distribution centers, partnering with local retailers, or expanding its online presence to reach a wider customer base. The North American automotive aftermarket is a large and fragmented market, offering ample opportunities for growth.
- Strategic Partnerships with Automotive Manufacturers: Motorcar Parts of America can pursue strategic partnerships with automotive manufacturers to supply parts for their aftermarket programs and warranty replacement programs. By becoming a preferred supplier for these programs, the company can secure a stable source of revenue and gain access to a large customer base. These partnerships can also provide valuable insights into the evolving needs of the automotive industry, allowing the company to develop new products and services that meet the demands of its customers.
- Enhancement of Remanufacturing Capabilities: Motorcar Parts of America has an opportunity to enhance its remanufacturing capabilities to reduce costs and improve sustainability. Remanufacturing involves restoring used parts to like-new condition, which can be a more cost-effective and environmentally friendly alternative to manufacturing new parts. By investing in advanced remanufacturing technologies and processes, the company can reduce its raw material costs, minimize waste, and appeal to environmentally conscious customers. This aligns with the growing trend towards sustainability in the automotive industry.
What Opportunities Does MPAA Have?
- Growing demand for EV testing solutions.
- Expansion into new geographic markets.
- Strategic partnerships with automotive manufacturers.
- Increased focus on sustainability and remanufacturing.
What Threats Does MPAA Face?
- Intense competition in the automotive aftermarket.
- Fluctuations in raw material costs.
- Technological changes in the automotive industry.
- Economic downturns affecting consumer spending.
What Are MPAA's Competitive Advantages?
- Established relationships with major automotive retailers and distributors.
- Expertise in remanufacturing processes, offering cost advantages.
- Growing presence in the EV testing solutions market.
- Diversified product portfolio across rotating electrical, brake, and wheel hub components.
What Does MPAA Do?
Motorcar Parts of America, Inc., founded in 1968 and headquartered in Torrance, California, manufactures, remanufactures, and distributes replacement parts for heavy-duty trucks, industrial, marine, and agricultural applications. The company's core product lines include rotating electrical products such as alternators and starters, wheel hub assemblies and bearings, and brake-related products like brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. These products are primarily sold to automotive retail chain stores, warehouse distributors, and automobile manufacturers for aftermarket and warranty programs in North America. In recent years, Motorcar Parts of America has strategically expanded its offerings to include test solutions and diagnostic equipment for electric vehicle powertrain development and manufacturing. This includes electric motor test systems, e-axle test systems, advanced power emulators, and charging unit test systems. The company also provides test systems for traditional automotive components like alternators, starters, and turbochargers, as well as test services for electric vehicle inverters. This diversification aims to leverage the growing demand for EV technology and testing solutions, positioning the company for long-term growth in a rapidly evolving automotive landscape. Motorcar Parts of America operates with approximately 5900 employees.
What Products and Services Does MPAA Offer?
- Manufactures and remanufactures rotating electrical products like alternators and starters.
- Supplies wheel hub assemblies and bearings for various vehicles.
- Produces brake-related products including calipers, boosters, rotors, and pads.
- Offers test solutions for electric vehicle powertrain development and manufacturing.
- Provides diagnostic equipment for electric motor and e-axle testing.
- Sells advanced power emulators and charging unit test systems.
- Offers test systems for traditional automotive components like alternators and starters.
- Provides test services for electric vehicle inverters.
How Does MPAA Make Money?
- Manufactures and remanufactures auto parts.
- Sells products to automotive retail chain stores and warehouse distributors.
- Supplies parts to automobile manufacturers for aftermarket and warranty programs.
- Offers testing solutions and diagnostic equipment for EV powertrain development.
What Industry Does MPAA Operate In?
Motorcar Parts of America operates in the automotive aftermarket industry, which is characterized by steady demand for replacement parts and maintenance services. The industry is influenced by factors such as the age of vehicles on the road, miles driven, and economic conditions. The rise of electric vehicles presents both a challenge and an opportunity, requiring companies to adapt their product offerings and services. Competition is intense, with numerous players ranging from large manufacturers to smaller distributors. Motorcar Parts of America differentiates itself through its focus on both traditional aftermarket parts and EV testing solutions.
Who Are MPAA's Key Customers?
- Automotive retail chain stores
- Warehouse distributors
- Automobile manufacturers (for aftermarket programs)
- Automobile manufacturers (for warranty replacement programs)
MPAA Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2026
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future, indicating that those closest to the business believe in its potential.
- Community sentiment has shifted positively, with discussions highlighting the company's innovative product lines and market expansion efforts.
- Analysts have noted strong demand for automotive parts, which could benefit Motorcar Parts as the industry rebounds post-pandemic.
- The company has been actively pursuing strategic partnerships, enhancing its market presence and operational capabilities.
Bear Case
- Concerns over supply chain disruptions remain prevalent, which could impact production and delivery schedules for the company.
- Recent market sentiment reflects skepticism about the overall automotive sector, leading to cautious views on companies like Motorcar Parts.
- Insider selling activity in the past month has raised red flags for some investors, suggesting potential lack of confidence from certain executives.
- There are ongoing worries about rising raw material costs, which could squeeze margins and affect profitability in the near term.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
MPAA Latest News
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Crude Oil Gains Over 1%; Motorcar Parts Of America Shares Surge After Q4 Earnings
benzinga · Jun 8, 2026
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Motorcar Parts Of America, Campbell's And 3 Stocks To Watch Heading Into Monday
benzinga · Jun 8, 2026
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Nasdaq Records Worst Session Since April 2025: Investor Sentiment Plunges, Greed Index Moves To 'Fear' Zone
benzinga · Jun 8, 2026
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Earnings Scheduled For November 10, 2025
benzinga · Nov 10, 2025
MPAA Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for MPAA.
Price Targets
Consensus target: $18.33
MPAA MoonshotScore
What does this score mean?
The MoonshotScore rates MPAA's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Crude Oil Gains Over 1%; Motorcar Parts Of America Shares Surge After Q4 Earnings
Motorcar Parts Of America, Campbell's And 3 Stocks To Watch Heading Into Monday
Nasdaq Records Worst Session Since April 2025: Investor Sentiment Plunges, Greed Index Moves To 'Fear' Zone
Earnings Scheduled For November 10, 2025
Latest Motorcar Parts of America, Inc. Analysis
Leadership: Selwyn H. Joffe
Chairman, President and Chief Executive Officer
Selwyn H. Joffe serves as the Chairman, President, and Chief Executive Officer of Motorcar Parts of America, Inc. His leadership has been instrumental in guiding the company through various market cycles and strategic expansions. He has extensive experience in the automotive industry, with a focus on aftermarket parts and distribution. His expertise includes operational management, financial strategy, and business development. He is responsible for overseeing the company's overall performance and driving its long-term growth initiatives.
Track Record: Under Selwyn H. Joffe's leadership, Motorcar Parts of America has expanded its product offerings to include EV testing solutions, diversifying its revenue streams. He has also focused on improving operational efficiency and strengthening relationships with key customers. His strategic decisions have contributed to the company's growth in the competitive automotive aftermarket. He has also overseen the company's expansion into new markets and product categories.
What Investors Ask About Motorcar Parts of America, Inc. (MPAA) — Consumer Cyclical
What does Motorcar Parts of America, Inc. do?
Motorcar Parts of America, Inc. (MPAA) is a manufacturer, remanufacturer, and distributor of aftermarket auto parts, primarily serving the North American market. The company's core business revolves around rotating electrical products (alternators, starters), wheel hub assemblies, and brake components. MPAA has also strategically expanded into electric vehicle (EV) testing solutions, providing diagnostic equipment for EV powertrain development and manufacturing. This diversification aims to capture growth in the evolving automotive landscape, positioning MPAA as a key player in both traditional and electric vehicle aftermarket segments.
What do analysts say about MPAA stock?
Analyst coverage of Motorcar Parts of America, Inc. (MPAA) typically focuses on the company's growth prospects in the automotive aftermarket and its expansion into EV testing solutions. Key valuation metrics include the P/E ratio, which currently stands at 7.65, and revenue growth projections. Considerations often include the company's ability to maintain profitability amidst competitive pressures and effectively capitalize on the growing demand for EV testing equipment. Analyst consensus is Unknown, reflecting the company's mixed financial performance and evolving business strategy. No buy/sell recommendations can be made.
What are the main risks for MPAA?
Motorcar Parts of America, Inc. (MPAA) faces several risks inherent to the automotive aftermarket and its expansion into EV testing. Intense competition from established players and new entrants could pressure pricing and market share. Fluctuations in raw material costs, particularly for metals and electronics, can impact profitability. The cyclical nature of the automotive industry exposes MPAA to economic downturns and shifts in consumer spending. Successfully navigating the technological changes in the automotive sector, particularly the transition to electric vehicles, is crucial for MPAA's long-term success. Supply chain disruptions also pose a risk to production and distribution.
How does Motorcar Parts of America, Inc. manage supply chain and input cost risks?
Motorcar Parts of America, Inc. navigates supply chain and input cost risks through several strategies. The company diversifies its supplier base to reduce reliance on single sources and mitigate disruptions. MPAA also employs hedging strategies to manage fluctuations in raw material costs, such as metals and electronics. Furthermore, the company focuses on improving operational efficiency and streamlining its supply chain processes to minimize costs and lead times. Strategic partnerships with key suppliers and customers also play a role in ensuring supply chain resilience and stability. These efforts aim to maintain profitability and competitiveness in the face of external challenges.
What is Motorcar Parts of America, Inc.'s geographic revenue mix?
Motorcar Parts of America, Inc.'s revenue is primarily concentrated in North America. While specific breakdowns are Unknown, the company's sales are largely derived from the United States and Canada. The company sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. International growth rates are Unknown, as the company's focus remains on strengthening its position in the North American market. Emerging market exposure is Unknown, as the company has not yet significantly expanded its operations beyond North America.
What are the key factors to evaluate for MPAA?
Motorcar Parts of America, Inc. (MPAA) holds an AI score of 41/100 (low). P/E: 7.2x vs the S&P 500's ~20-25x. Analysts target $18.33 (+23%). Not financial advice.
How frequently does MPAA data refresh on this page?
MPAA prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven MPAA's recent stock price performance?
Motorcar Parts of America, Inc. (MPAA) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Established presence in the automotive aftermarket. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Analyst consensus is based on limited coverage.
- Future performance is subject to market conditions and company-specific factors.