New Lifetime High Reached: Motorcar Parts Of America (MPAA)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Motorcar Parts of America ( MPAA) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Motorcar Parts of America as such a stock due to the following factors:

  • MPAA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.7 million.
  • MPAA has traded 9,029 shares today.
  • MPAA is trading at a new lifetime high.

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More details on MPAA:

Motorcar Parts of America, Inc. together with its subsidiaries, engages in manufactures, remanufactures, and distributes aftermarket automobile parts primarily in the United States and Canada. Currently there are 3 analysts that rate Motorcar Parts of America a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Motorcar Parts of America has been 253,800 shares per day over the past 30 days. Motorcar Parts of America has a market cap of $369.6 million and is part of the consumer goods sector and automotive industry. The stock has a beta of 2.23 and a short float of 4.1% with 1.43 days to cover. Shares are up 28.1% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Motorcar Parts of America as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Auto Components industry and the overall market, MOTORCAR PARTS OF AMER INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for MOTORCAR PARTS OF AMER INC is currently lower than what is desirable, coming in at 34.47%. Regardless of MPAA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.75% trails the industry average.
  • MOTORCAR PARTS OF AMER INC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, MOTORCAR PARTS OF AMER INC reported poor results of -$4.35 versus -$3.89 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus -$4.35).
  • The debt-to-equity ratio is somewhat low, currently at 0.94, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.41 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Compared to its closing price of one year ago, MPAA's share price has jumped by 266.09%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in MPAA do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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