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, primarily due to its strong financial performance relative to industry benchmarks.
The company's Price-to-Earnings (PE) ratio stands at 18.95, slightly above the sector average of 16.48. This indicates that investors are willing to pay a premium for SMP’s earnings, which suggests healthy profit expectations. Meanwhile, the Price-to-Book (PB) ratio of 1.36 is significantly lower than the sector average of 2.10, suggesting that SMP's stock may be undervalued compared to its book value.
SMP showcases a robust net profit margin of 2.51, vastly outperforming the sector's 0.13. This indicates that the company retains a larger portion of its revenue as profit, reflecting effective cost management and operational efficiency. Additionally, the Return on Equity (ROE) ratio of 5.38 compared to the sector’s 1.68 demonstrates that SMP is generating a higher return on shareholders’ equity, which is a positive sign for potential investors.
Moreover, SMP offers an attractive dividend yield of 3.71, significantly higher than the sector average of 1.45. This points to a commitment to returning value to shareholders. The Return on Assets (ROA) ratio of 2.64, in contrast to the sector's -0.09, further highlights the company’s efficient use of its assets to generate earnings.
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
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