Important note

This AI stock analysis for Standard Motor Products is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Standard Motor Products - AI Stock Analysis

Analysis generated March 30, 2025

Standard Motor Products, Inc. manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. The company operates through two segments: Engine Management Segment, and Temperature Control Segment. The company’s products include ignition and emission parts, electrical systems, sensors, and vehicle temperature control components. Headquartered in Long Island City, New York, Standard Motor Products aims to provide comprehensive and quality solutions to meet the needs of the automotive market.

Fundamental Analysis

Revenue for the last quarter was $799M. This figure marks an increase of 2.42% compared to the quarter before, suggesting a positive growth trajectory. More compelling is the year-over-year increase of 3.81%, indicating steady revenue growth for the company.

Net income for the last quarter was $3.8M, representing a significant decline of 77.67% compared to the previous quarter. This steep decrease is concerning and may signal potential underlying operational issues. Year-over-year, net income saw a decrease of 42.78%, warranting closer scrutiny.

EBITDA for the last quarter was $18M, a drop of 23.69% from the previous quarter, and a decrease of 12.19% compared to the same quarter last year. These declines suggest potential operational inefficiencies or increased costs that negatively impact earnings before interest, taxes, depreciation, and amortization.

The current P/E ratio is 10.34, which may be considered low relative to industry benchmarks. A low P/E potentially indicates that the stock is undervalued and could present a buying opportunity if other factors align favorably.

Technical Analysis

Today’s stock price is $24.92, reflecting a decrease of 12.65% compared to a month ago and a 22.90% decline from a year ago. This downward price trend could be a cause for concern for both short-term and long-term investors.

The trend is currently bearish, with the stock displaying a lower SMA10 at 25.57 compared to the previous SMA10 of 25.73. This decreasing simple moving average points to a potential continued downward trend in the stock price.

The relative strength index (RSI) is 32, indicating a neutral condition. While not in the oversold territory, the RSI suggests that the stock is neither overbought nor on the verge of a significant price movement.

Alternative Data Analysis

Examining job postings and employee sentiment, Standard Motor Products has 36 open positions, up by 44% in the last few months. This growth in job openings may indicate a company in expansion mode, which is generally a positive signal for future business prospects.

The business outlook among employees remains neutral, which neither suggests significant internal optimism nor concerns.

With approximately 50,000 visitors to their webpage, an estimate that is down by 6% in the last couple of months, Standard Motor Products appears to face a potential decline in customer interest. This downward trend may indicate challenges in customer acquisition.

Customer engagement metrics show an increase in Instagram followers by 25% over the last couple of months, though the Twitter following of 710 remains stagnant. The rise in Instagram followers suggests growing interest and engagement with the company's brand and products.

Lastly, AltIndex’s AI score for Standard Motor Products is 61, suggesting a buy signal. The AI score incorporates fundamental, technical, and alternative data inputs to forecast future price movements.

Conclusion

Taking all data points into consideration, Standard Motor Products exhibits some mixed signals. While revenue growth is promising, significant declines in net income and EBITDA present potential red flags. The bearish technical trend and declining webpage views also raise concerns. Conversely, the company’s increasing job postings and rise in social media engagement offer some positive outlooks. The low P/E ratio of 10.34 suggests the stock might be undervalued, and the AI score of 61 provides a buy recommendation.

Investors should weigh these mixed indicators carefully. While there is potential for growth, as suggested by the AI score and job postings, the declines in key financial metrics and current bearish trend may caution against immediate investment.

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.