Standard Motor Products, headquartered in Long Island City, New York, manufactures and distributes automotive replacement parts, employing 5,200 staff across various segments. Their offerings include Engine Management, AC System Components, and Engineered Solutions for diverse markets.
Based on our analysis, Standard Motor Products (SMP) has received an undervalued rating of 4 out of 5 stars from Cashu. Several key financial ratios indicate that SMP is positioned favorably compared to its sector peers.
The company has a Price-to-Earnings (PE) ratio of 18.18, which is slightly above the sector average of 15.85. This suggests that investors are willing to pay a premium for SMP's earnings, reflecting confidence in its growth prospects. However, the Price-to-Book (PB) ratio stands at 1.36, significantly lower than the sector's 2.07, indicating that SMP might be undervalued relative to its asset base.
SMP boasts a net profit margin of 2.51, compared to the sector's meager 0.13. This higher profit margin demonstrates SMP's efficiency in converting revenue into profit, which could be a strong indicator of operational effectiveness. Furthermore, the Return on Equity (ROE) for SMP is 5.38, well above the sector average of 1.68, signaling that the company is effectively generating returns for its shareholders.
The dividend yield of 3.86 also surpasses the sector's 1.46, suggesting that SMP provides attractive income to investors. Lastly, the Return on Assets (ROA) ratio of 2.64 far exceeds the sector's -0.09, highlighting SMP's ability to efficiently utilize its assets to generate earnings.
These financial metrics collectively suggest that Standard Motor Products is undervalued, presenting potential opportunities for investors.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
More Signals
Feature in Progress
This section is under development. Check back soon for updates!
