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Motorcar Parts of America - AI Stock Analysis
Analysis generated May 29, 2024
Motorcar Parts of America, Inc. (MPA) is a supplier of automotive aftermarket parts, including alternators, starters, and brake master cylinders. With an established presence in the United States and the global market, the company has built a diverse portfolio and a strong reputation for quality and reliability. However, recent financial and market performance metrics necessitate a closer examination to ascertain its investment potential.
Fundamental Analysis
Motorcar Parts of America's revenue for the last quarter was $174 million. This figure represents a decrease of 9.13% compared to the previous quarter, which should raise some concerns about the company's short-term performance. However, when compared to the same quarter last year, revenue has grown by 11.36%, indicating positive year-over-year growth.
The net income for the last quarter was -$47 million. This signifies a dramatic decrement of 2,311.34% compared to the quarter before, and an even more alarming 4,701.75% decrease compared to the same quarter last year. These figures are highly concerning and suggest severe profitability issues.
EBITDA for the last quarter was $9.5 million, marking a decrease of 511.89% from the previous quarter and a decrease of 29.12% compared to the same quarter last year. A decreasing EBITDA is a red flag, especially as it indicates a potential issue with the company's cash flow and operational efficiency.
The current price-to-earnings (P/E) ratio stands at 47.33, which could be considered high. A high P/E ratio often suggests that a stock may be overvalued and could have a bearish outlook unless accompanied by high growth expectations.
Technical Analysis
Today's stock price is $5.38, which is a decrease of 9.12% from a month ago. While concerning in the short term, the year-over-year decrease of 9.73% is more alarming, indicating persistent long-term weakness in the stock’s performance. Despite this, the trend appears to be bullish.
The current Simple Moving Average (SMA10) is 5.22, slightly higher than the previous SMA10 of 5.17. This marginal increase indicates a potential upward trend in price movement, which could be a positive sign for short-term pricing dynamics.
The Relative Strength Index (RSI) is at 52, suggesting a neutral condition. This implies that the stock is neither overbought nor oversold, which makes it prudent to consider other data points before making an investment decision.
Alternative Data Analysis
The number of job postings at Motorcar Parts of America has increased by 200% in the last couple of months, currently standing at 3 open positions. This is a potentially positive sign, as it indicates that the company may be looking to grow and expand.
Employee sentiment regarding the business outlook is neutral, which does not significantly contribute to a positive or negative outlook.
The estimated number of visitors to the company's webpage is 14,000, which is down by 7% over the last couple of months. This negative trend in traffic could suggest a reduction in customer interest or engagement, which is worrisome.
On social media, Motorcar Parts of America has 1,500 followers on Instagram and 380 on Twitter, with no meaningful changes recently. This stagnant social media growth indicates a possibly low customer engagement through these platforms.
The company's AI score, provided by AltIndex, is 56. This score suggests a “hold” signal, indicating that the stock is neither particularly strong nor weak based on a comprehensive set of factors analyzed by the AI.
Conclusion
Motorcar Parts of America shows a mixed bag of indicators. The year-over-year revenue increase is a positive, but alarming net income and EBITDA trends raise red flags. From a technical perspective, while the overall trend appears slightly bullish, the RSI indicates neutrality. Alternative data presents a mixed view with increased job postings indicating potential growth but decreased web traffic suggesting waning customer interest.
Overall, given the high P/E ratio, declining profitability, and mixed signals from alternative data, the recommendation would be to hold the stock. Investors should exercise caution and closely monitor the company's future financial performance and market conditions before making any further investment decisions.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
