(MPAA) Motorcar Parts of America - Ratings and Ratios

Motorcar Parts of America, Inc. (NASDAQ:MPAA) is a leading manufacturer, remanufacturer, and distributor of high-quality replacement parts for heavy-duty truck, industrial, marine, and agricultural applications in the United States. The company specializes in a wide range of products, including rotating electrical components such as alternators and starters, wheel hub assemblies, bearings, and a comprehensive portfolio of brake-related products. Additionally, MPAA offers turbochargers, diagnostic equipment, and test solutions for electric and combustion engine vehicles, as well as software emulation tools for power systems in the electrification of transportation. Its product line also includes non-discretionary aftermarket replacement hard parts for heavy-duty applications. The company serves automotive retail chain stores, warehouse distributors, and original equipment manufacturers (OEMs) for aftermarket and warranty programs. Established in 1968, MPAA is headquartered in Torrance, California, and operates at the forefront of the automotive aftermarket industry, with a strong focus on innovation and sustainability.

Based on current market trends and financial data, the 3-month outlook for MPAA suggests moderate upward momentum, supported by improving technical indicators. The stock has recently breached above its SMA 20 and SMA 50, signaling potential short-term strength. However, the SMA 200 remains below the current price, indicating longer-term challenges. The ATR of 0.68 reflects moderate volatility, suggesting controlled price fluctuations. Fundamentally, the companys P/S ratio of 0.28 and P/B of 0.81 indicate undervaluation relative to its peers, while the forward P/E of 9.29 suggests expectations of future earnings growth. Despite a negative RoE of -6.63, which raises concerns about profitability, the companys strategic focus on electrification and aftermarket solutions could drive incremental revenue growth in the coming months.