Quality Investor

Standard Motor Products, Inc.

Rank #250Hypergrowth

SMP · NYSE · Consumer Cyclical

Standard Motor Products, Inc. (SMP) — Rank #250 by gross profitability (GP/assets 0.27) · ROE 5.8% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0000093389 · all metrics point-in-time as of the filing date.

About

Standard Motor Products, Inc. manufactures and distributes replacement automotive parts in the United States, Europe, Canada, Mexico, Poland, and internationally.

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The company operates through four segments: Vehicle Control, Temperature Control, Nissens Automotive, and Engineered Solutions. It provides ignition, emissions, and fuel delivery systems, such as air injection and induction components, air management valves, regulators and solenoids, exhaust gas recirculation components, fuel injectors and components, fuel valves, ignition coils, connectors and sockets, modules, pumps, relays and fuses, starting and charging system parts, and vapor and purge components. The company also offers electrical switches and actuators; anti-lock brake and vehicle speed sensors, fluid level sensors, and pressure sensors comprising tire pressure monitoring, temperature sensors, advanced driver assistance systems sensors, battery cables, pigtails, and sockets; electrical wire, terminals, connectors, and tools for servicing a vehicle's electrical system; and spark plug, coil on plug boots, and ignition system accessories. In addition, it offers AC system components; other thermal components; and engine cooling, air conditioning, and engine efficiency products. Further, it provides thermal management products, sensors, switches, power distribution, electrification and electronics, injections and fuel delivery, ignition and emissions, and clamping devices for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics, and lawn and garden sectors. It serves retailers, warehouse distributors, original equipment manufacturers and their suppliers, system integrators, and original equipment service part manufacturers.

The company was founded in 1919 and is headquartered in Long Island City, New York.

Industry
Auto Parts
Sector
Consumer Cyclical
State
NY
Filer Category
Accelerated filer
Fiscal Year End
December 31

Price History

SMP+4.3% · +0.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$837.77M

P/E (annual)

20.5

P/S (annual)

0.5

P/B

1.2

P/OCF (annual)

14.6

Shareholder Yield

6.5%

Employees

5,700

Industry

Auto Parts

Exchange

NYSE

Signal Flags

2 green1 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.27
Return on equity
5.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.81
Current ratio
2.00×
Net cash
-$501.63M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
0.4%

Growth

2/2 pass
Revenue growth
82.7%
Piotroski F-Score
6 / 9
Share dilution
-3.3%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

18.8%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -3.3% — per-share value needs a total required return of 15.6% once share-count change is priced in.

vs. own 6-year median revenue growth: 6.1%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

13.9%

r = 10% (base)

18.8%

r = 12%

23.1%

Net debt / market cap: 59.3%— material leverage inflates the implied growth read.

Note: current FCF margin is 1.7σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $18.7M3Y mean FCF: $42.1M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

20.3xFair
10.3xmed 19.9x31.3x

P / S

Price / revenue per share

1.0xFair
0.7xmed 0.9x1.1x

P / B

Price / book value per share

2.3xCheap
1.8xmed 2.4x3.0x

P / GP

Price / gross profit per share

3.5xFair
2.5xmed 3.2x3.8x

P / FCF

Price / free cash flow per share

19.4xFair
7.8xmed 18.6x36.4x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.27

Primary signal (Novy-Marx).

3rd of 12 SIC 3714 peers

Return on equity

5.8%

Gross margin

31.2%

4th of 12 SIC 3714 peers

Revenue growth (YoY)

82.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2012201320142015
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

Earnings CAGR (3Y)

-9.3%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.81

11th of 11 SIC 3714 peers (best = lowest)

Current ratio

2.00×

8th of 12 SIC 3714 peers

Quick ratio

0.78×

Net cash

-$501.63M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$18.72M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.55

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.4%

Stock-based comp intensity.

Dividend safety

Composite score

1.8 / 5

Weak
Payout ratio
66.0%2/5 Fair
FCF coverage
0.69×1/5 Weak
Dividend growth streak
5 yr3/5 Good
Balance-sheet health
D/E 1.81 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20102015
Capital Return
Value