olivLaw · US equity research
Motorcar Parts of America, Inc. MPAA
Motor Vehicle Parts & Accessories · SIC 3714 · Vertical: Motor Vehicle Parts & Accessories (SIC 3714)
Motorcar Parts of America remanufactures and distributes automotive aftermarket replacement parts, focused on alternators, starters and brake systems, plus test equipment. The company depends heavily on a few large customers, and its first fiscal 2027 quarter showed lower sales, which management attributes mainly to order timing, while reaffirming full-year guidance. Net sales in fiscal 2026 reached $789.8 million.
At the close of 04 Nov 2026, Motorcar Parts of America, Inc. (MPAA) stock was 10.58 USD (+1.83% on the day), with market capitalisation 200.3 m USD, beta 0.90, 52-week range 9.52–17.73 USD. Latest reported quarter (Q1 2027): revenue of 168.0 m USD (−10.8% YoY), net income of -13.4 m USD (−541.2% YoY), diluted EPS -0.71 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 52.8
- neutral
- Bollinger (20, 2)
- 9.95 – 10.69
- in the upper half of the band · %B 0.85 · band width 7.1%
- SMA 50 / 200
- 10.72 / 11.77
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.09 / -0.17
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −0.4% | −1.1% | +0.7 pp | — |
| 3 months | −23.8% | −0.5% | −23.3 pp | — |
| 6 months | −9.0% | +4.4% | −13.3 pp | — |
| Year to date | −14.3% | +12.3% | −26.6 pp | — |
| 1 year | −38.0% | +13.5% | −51.6 pp | −10.2% |
| 3 years | +37.9% | +76.4% | −38.5 pp | −3.9% |
| 5 years | −46.5% | +63.7% | −110.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 208.2 m | 186.2 m | 193.1 m | 188.4 m | 221.5 m | 167.7 m | 212.3 m | 168.0 m |
| Cost of revenue | 166.9 m | 141.3 m | 154.6 m | 154.4 m | 178.7 m | 134.8 m | 161.9 m | 140.8 m |
| Gross profit | 41.3 m | 44.9 m | 38.5 m | 33.9 m | 42.7 m | 32.9 m | 50.4 m | 27.2 m |
| Research & development | 2.4 m | 3.0 m | 3.5 m | 3.3 m | 3.9 m | 3.5 m | 3.5 m | 3.2 m |
| Operating income | 12.5 m | 17.6 m | 16.3 m | 20.1 m | 16.4 m | 8.3 m | 21.1 m | 3.5 m |
| Depreciation & amortisation | 2.6 m ≈ | 2.5 m ≈ | — | 2.4 m | 2.4 m ≈ | 2.4 m ≈ | — | — |
| Pre-tax income | -2.0 m | 3.4 m | 1.2 m | 5.5 m | 1.4 m | 1.3 m | 12.0 m | -10.1 m |
| Income tax | 912.0 k | 1.1 m | 1.9 m | 2.4 m | 3.6 m | -434.0 k | 2.3 m | 3.4 m |
| Net income | -3.0 m | 2.3 m | -722.0 k | 3.0 m | -2.1 m | 1.8 m | 9.7 m | -13.4 m |
| Diluted EPS | -0.15 | 0.11 | -0.04 ≈ | 0.15 | -0.11 | 0.09 | 0.50 ≈ | -0.71 |
| Operating cash flow | 22.9 m ≈ | 34.4 m ≈ | 9.1 m | 10.0 m | 21.9 m ≈ | -8.2 m ≈ | -4.5 m | -11.3 m |
| Capex | 557.0 k ≈ | 669.0 k ≈ | 2.9 m | 807.0 k | 1.0 m ≈ | 417.0 k ≈ | 1.4 m | 1.1 m |
| Share repurchases | 0 ≈ | 2.1 m ≈ | 2.7 m | 2.0 m | 1.4 m ≈ | 5.0 m ≈ | 3.0 m | 1.9 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 472.8 m | 535.8 m | 540.8 m | 650.3 m | 683.1 m | 717.7 m | 757.4 m | 789.8 m |
| Revenue YoY | +10.6% | +13.3% | +0.9% | +20.3% | +5.0% | +5.1% | +5.5% | +4.3% |
| Net income | -7.8 m | -7.3 m | 21.5 m | 7.4 m | -4.2 m | -49.2 m | -19.5 m | 12.4 m |
| Net income YoY | −140.7% | unavailable | unavailable | −65.7% | −157.2% | unavailable | unavailable | unavailable |
| Diluted EPS | -0.42 | -0.39 | 1.11 | 0.38 | -0.22 | -2.51 | -0.99 | 0.62 |
| Diluted EPS YoY | −142.4% | unavailable | unavailable | −65.8% | −157.9% | unavailable | unavailable | unavailable |
| net % | -1.7% | -1.4% | 4.0% | 1.1% | -0.6% | -6.9% | -2.6% | 1.6% |
| Free cash flow | -51.5 m | 4.6 m | 42.1 m | -52.4 m | -26.0 m | 38.2 m | 40.9 m | 15.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 14.7 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 266.0 m USD
- Total assets
- 1.0 bn USD
- Debt / equity
- unavailable
- Current ratio
- 1.46x
- ROE
- 4.7%
- ROA
- 1.3%
- FCF margin
- 2.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 540.8 m | 650.3 m | 683.1 m | 717.7 m | 757.4 m | 789.8 m | SEC (XBRL)· 08 Jun 2026verified |
| Cost of revenue | 431.3 m | 532.4 m | 569.1 m | 585.1 m | 603.5 m | 629.9 m | SEC (XBRL)· 08 Jun 2026verified |
| Gross profit | 109.5 m | 117.9 m | 114.0 m | 132.6 m | 153.8 m | 159.9 m | SEC (XBRL)· 08 Jun 2026verified |
| Research & development | 8.6 m | 10.5 m | 10.3 m | 10.0 m | 11.4 m | 14.2 m | SEC (XBRL)· 08 Jun 2026verified |
| Operating income | 46.6 m | 28.7 m | 36.4 m | 46.1 m | 39.9 m | 65.8 m | SEC (XBRL)· 08 Jun 2026verified |
| Pre-tax income | 30.9 m | 13.1 m | -3.1 m | -13.1 m | -15.7 m | 20.3 m | SEC (XBRL)· 08 Jun 2026verified |
| Income tax | 9.4 m | 5.8 m | 1.1 m | 36.2 m | 3.8 m | 7.9 m | SEC (XBRL)· 08 Jun 2026verified |
| Net income | 21.5 m | 7.4 m | -4.2 m | -49.2 m | -19.5 m | 12.4 m | SEC (XBRL)· 08 Jun 2026verified |
| Diluted EPS | 1.11 | 0.38 | -0.22 | -2.51 | -0.99 | 0.62 | SEC (XBRL)· 08 Jun 2026verified |
| Weighted average diluted shares | 19.4 m | 19.6 m | 19.3 m | 19.6 m | 19.7 m | 20.0 m | SEC (XBRL)· 08 Jun 2026verified |
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 15.5 m | 23.0 m | 11.6 m | 14.0 m | 9.4 m | 14.7 m | SEC (XBRL)· 08 Jun 2026verified |
| Receivables | 63.1 m | 85.1 m | 119.9 m | 96.3 m | 91.1 m | 112.6 m | SEC (XBRL)· 08 Jun 2026verified |
| Inventories | 288.4 m | 370.5 m | 339.7 m | 377.0 m | 341.2 m | 397.0 m | SEC (XBRL)· 10 Aug 2026verified |
| Current assets | 422.9 m | 537.0 m | 537.5 m | 560.5 m | 511.5 m | 584.0 m | SEC (XBRL)· 08 Jun 2026verified |
| Property, plant & equipment, net | 53.9 m | 51.1 m | 46.1 m | 38.3 m | 32.0 m | 30.7 m | SEC (XBRL)· 08 Jun 2026verified |
| Goodwill | 3.2 m | 3.2 m | 3.2 m | 3.2 m | 3.2 m | 3.2 m | SEC (XBRL)· 08 Jun 2026verified |
| Intangibles (excl. goodwill) | 5.3 m | 3.8 m | 2.1 m | 1.1 m | 552.0 k | 235.0 k | SEC (XBRL)· 08 Jun 2026verified |
| Total assets | 847.9 m | 1.0 bn | 1.0 bn | 1.0 bn | 957.6 m | 1.0 bn | SEC (XBRL)· 08 Jun 2026verified |
| Accounts payable | 129.3 m | 147.5 m | 119.4 m | 155.0 m | 141.9 m | 167.2 m | SEC (XBRL)· 08 Jun 2026verified |
| Current liabilities | 326.1 m | 426.4 m | 382.6 m | 404.4 m | 351.0 m | 399.6 m | SEC (XBRL)· 08 Jun 2026verified |
| Total liabilities | 546.7 m | 700.4 m | 708.1 m | 726.9 m | 699.9 m | 753.4 m | SEC (XBRL)· 08 Jun 2026verified |
| Equity | 301.1 m | 315.3 m | 320.5 m | 285.1 m | 257.7 m | 266.0 m | SEC (XBRL)· 08 Jun 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 56.1 m | -44.9 m | -21.8 m | 39.2 m | 45.5 m | 19.2 m | SEC (XBRL)· 08 Jun 2026verified |
| Capex | 13.9 m | 7.6 m | 4.2 m | 1.0 m | 4.6 m | 3.7 m | SEC (XBRL)· 08 Jun 2026verified |
| Free cash flow | 42.1 m ≈ | -52.4 m ≈ | -26.0 m ≈ | 38.2 m ≈ | 40.9 m ≈ | 15.5 m ≈ | SEC (XBRL)· 08 Jun 2026derived |
| Investing cash flow | -14.2 m | -7.9 m | -4.2 m | -479.0 k | -4.5 m | -3.6 m | SEC (XBRL)· 08 Jun 2026verified |
| Financing cash flow | -76.6 m | 60.2 m | 14.3 m | -36.4 m | -44.7 m | -11.0 m | SEC (XBRL)· 08 Jun 2026verified |
| Share repurchases | 1.1 m | 1.9 m | 0 | 0 | 4.8 m | 11.4 m | SEC (XBRL)· 08 Jun 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 33.3% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 200.3 m USD
Key indicators
Coverage and freshness
Score by group
33% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -0.5% | 35 (vs peers) | 19% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 5.0% | 41 (on a fixed band) | 25% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.4x | 54 (on a fixed band) | 13% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -3.1% | 0 (on a fixed band) | 25% |
| Shareholder yield (distributions) · Returns | 5.6% | 81 (on a fixed band) | 19% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial54/100 · 1/3 factors with a value
- Growth· partial41/100 · 1/2 factors with a value
- Quality· partial35/100 · 1/3 factors with a value
- Returns· partial81/100 · 1/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
MOTORCAR PARTS OF AMERICA, INC. (MPAA). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 789.8 m USD in 2026; YoY growth 4.3%; net margin -0.5%; ROE -1.6%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Shareholder yield (distributions): 5.6%
What contradicts it
- FCF yield: -3.1%
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Motor Vehicle Parts & Accessories (SIC 3714) · same industry (4-digit SIC) · compared with 34 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MGAMagna International Inc. | 18.4 bn | 22.4 | 6.9% | 2.0% | −1.9% | +34% / +22% |
| BWABorgwarner Inc. | 10.1 bn | 21.5 | 8.2% | 3.4% | +1.6% | +17% / +50% |
| ALSNAllison Transmission Holdings, Inc. | 9.9 bn | 17.4 | 29.7% | 11.1% | −6.7% | +36% / +125% |
| ALVAutoliv, Inc. | 9.0 bn | 15.1 | 24.8% | 5.6% | +4.1% | +7% / +21% |
| APTVAptiv PLC | 8.8 bn | 11.9 | 8.5% | 4.6% | +3.5% | −44% / −48% |
| LEALear Corp | 5.7 bn | 10.4 | 11.6% | 2.5% | −0.2% | +11% / −11% |
| MODModine Manufacturing Co | 5.2 bn | 41.3 | 11.4% | 3.6% | +23.1% | −39% / +100% |
| GNTXGentex Corporation | 4.4 bn | 11.0 | 16.4% | 15.5% | +9.6% | −9% / −32% |
| DORMDorman Products, Inc. | 4.2 bn | 21.2 | 13.3% | 9.3% | +6.0% | +8% / +98% |
| ATMUAtmus Filtration Technologies Inc. | 3.9 bn | 18.3 | 55.8% | 11.3% | +5.7% | −5% / +119% |
| GTXGarrett Motion Inc. | 3.6 bn | 10.1 | — | 10.0% | +3.1% | +20% / +167% |
| PATKPatrick Industries Inc | 2.7 bn | 20.1 | 13.0% | 3.7% | +6.3% | −22% / +55% |
| PHINPhinia Inc. | 2.6 bn | 14.5 | 12.2% | 5.2% | +2.4% | +33% / +181% |
| DANDana Incorporated | 2.6 bn | 2.4 | 71.4% | 14.6% | −3.0% | +6% / +80% |
| LCIILci Industries | 2.5 bn | 12.1 | 15.0% | 5.2% | +10.2% | −8% / −4% |
| VCVisteon Corp | 2.0 bn | 13.8 | 10.8% | 4.1% | −2.5% | −22% / −32% |
| THRMGentherm Incorporated | 1.6 bn | 105.3 | 1.3% | 0.6% | +2.9% | −13% / −32% |
| ADNTAdient plc | 1.3 bn | 28.5 | 2.7% | 0.3% | −1.0% | −12% / −47% |
| DCHDauch Corporation | 1.1 bn | — | -15.2% | -2.0% | −4.7% | −27% / −31% |
| SMPStandard Motor Products, Inc. | 1.0 bn | 15.1 | 9.9% | 3.8% | +22.4% | +22% / +28% |
| AEVAAeva Technologies, Inc. | 661.5 m | — | — | -150.1% | +99.4% | −15% / +240% |
| CPSCooper-Standard Holdings Inc. | 391.6 m | — | — | -2.0% | +0.4% | −29% / +24% |
| HLLYHolley Inc. | 351.6 m | 35.3 | 2.3% | 1.7% | +1.9% | −32% / −30% |
| KNDIKandi Technologies Group, Inc. | 287.8 m | — | -30.5% | -107.4% | −31.5% | −63% / −88% |
| STRTStrattec Security Corp | 258.5 m | 15.6 | 7.2% | 2.9% | +2.5% | −14% / +201% |
1- and 3-year price returns: for MPAA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Motorcar Parts of America remanufactures and distributes automotive aftermarket replacement parts, focused on alternators, starters and brake systems, plus test equipment. The company depends heavily on a few large customers, and its first fiscal 2027 quarter showed lower sales, which management attributes mainly to order timing, while reaffirming full-year guidance 13. Net sales in fiscal 2026 reached $789.8 million 1.
SWOT
Strengths
- A consolidated position in the non-discretionary parts market, with a broad product range and recognized own brands 1.
- Long-term customer relationships and new business commitments give a fairly predictable revenue base 13.
- Remanufacturing capacity and facilities in Mexico that can support growth and lower costs 13.
Weaknesses
- Very high dependence on a small number of customers, which exposes the company to lost sales or price pressure 1.
- Significant indebtedness and high financing costs, including through receivables discount programs 13.
- Gross margins under pressure and volatile quarterly results, with a net loss in the first quarter of fiscal 2027 23.
Opportunities
Risks
- Dependence on large customershigh
Three customers make up most sales, and losing one or a deterioration in its finances could seriously affect results 1. Pressure for lower prices and longer payment terms increases working capital needs 1.
- Indebtedness and financing costshigh
Net bank debt is significant, and rising interest rates could raise the cost of discount programs and the revolving credit line 13. The company recently extended its credit facility to 2031, which reduces near-term refinancing risk 3.
- Tariffs and supply chainmedium
Most components come from outside the US, and new tariffs or retaliation by other countries could raise costs and disrupt deliveries 1. Shipping delays and scarce materials are also disclosed risks 1.
- Currency exposuremedium
Operations in Mexico and Malaysia generate costs in foreign currencies, and swings in the Mexican peso could affect margins, as happened in the first quarter of fiscal 2027 13.
- Relocation of operationslow
Moving Canadian heavy-duty production to Mexico delayed first-quarter sales and could add transition costs if the process runs longer 23.
Investment thesis
What would need to be true (bull case)
- If demand for brake products recovers and Mexican capacity is used more efficiently, margins could return toward earlier levels 3.
- New business commitments and the Centric Parts brand could add significant annualized revenue by the end of fiscal 2027 3.
- The aging US vehicle fleet supports structural demand for replacement parts in a large and relatively stable market 1.
What would break the thesis
- Dependence on a few large customers could leave revenue exposed to a lost account or harsh contract renegotiation 1.
- The first fiscal 2027 quarter showed a net loss and margin pressure, and the expected recovery could take longer than planned 23.
- High debt costs and tariffs could erode profitability even if sales grow 13.
What to watch
- Quarterly net sales versus the annual guidanceQ2 2027
- Recovery in brake product demand and use of Mexican capacity2027
- Impact of tariffs and the peso on gross marginQ2 2027
- Contribution of Centric Parts and new contracts with large customersnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Motorcar Parts of America designs, remanufactures and distributes non-discretionary replacement auto parts, mainly for the North American market, where about 99% of products are sold 1. The portfolio includes alternators and starters, brake products (calipers, rotors, pads, boosters, master cylinders) and, through its electric vehicle subsidiary, test and diagnostic equipment. The company carries about 44,000 SKUs and sells under its own and private label brands 1. It was founded in 1968 and is headquartered in Torrance, California 1.
The business model relies on core exchange programs in which used cores are returned by customers and remanufactured in facilities in Mexico, Canada and Malaysia 1. Sales go to large retail chains, OES customers, professional installers and warehouse distributors 1. Relocating some operations to Mexico is presented as a way to make products more cost competitive 12.
The company has three operating segments, but only Hard Parts is a reportable segment; Test Solutions and Diagnostic Equipment and Heavy Duty are not material 12. The stated strategy is to grow existing product lines, expand coverage and leverage manufacturing capacity in Mexico 1.
Segments
Hard Parts
The Hard Parts segment covers alternators, starters and brake products and is the only reportable segment, so it drives the main financial results 12. In the first quarter of fiscal 2027, sales fell mainly in rotating electrical products while brake-related products saw strong demand 2.
Test Solutions and Diagnostic Equipment
This segment includes bench-top testers for alternators and starters, equipment for electric vehicle production and software emulation for electrification, including aerospace and charging applications 1. It is not separately reported as material, but management sees accelerating growth potential in the market 1.
Heavy Duty
The Heavy Duty segment covers replacement parts for heavy trucks and industrial, marine and agricultural uses, with some overlap with light-duty aftermarket 1. It is not reported separately as material 12. The company said relocating its Canadian heavy-duty operations to Mexico delayed sales in the first quarter 3.
Market context
The company operates in the North American hard parts aftermarket, described as a $130 billion market, where the US light-duty fleet is about 296 million vehicles with an average age of roughly 13 years 1. An aging fleet supports demand for replacement parts, which tends to hold up in recession years 1. The global market for automotive test and diagnostic equipment is described as above $11 billion and expanding quickly with electrification 1.
The medium and heavy-duty aftermarket for replacement parts is described as a $40 billion market in which the company also operates 1. Demand in the aftermarket is influenced by fuel prices and miles driven, which have generally risen in recent years although they fluctuate 1.
Trends
- Tariffsheadwind
The company sources most materials from non-US suppliers, so tariffs raise costs; management expects inflationary cost increases and has used price pass-through and relocation to lower-tariff locations 1. The margin effect could grow if tariffs rise or other countries retaliate further 1.
- Interest rates and financingmixed
Financing costs, especially for accounts receivable discount programs, remain high even though they eased somewhat in fiscal 2026 12. Lower sales reduced use of these programs and interest costs in the first quarter 3. If rates stay high, financing charges could keep weighing on results.
- Aging vehicle fleet and parts demandtailwind
The aging US vehicle fleet and rising miles driven support demand for non-discretionary replacement parts, which is relatively steady compared with discretionary auto parts 1. Over the long term, electrification and mobility-on-demand could reduce the number of combustion vehicles and related parts 1.
- Shift to electric vehicles and mobilitymixed
Electrification creates demand for test and diagnostic equipment, an area the company targets with bench-top testers and emulation solutions 1. However, the shift to electric vehicles and mobility services could over time reduce volumes of parts for combustion engines 1.
Competitive position
The market is highly competitive, with several large and mid-sized players such as Terrepower and DRiV for hard parts and Burke Porter and Langdi Measurement Control for testing, plus many regional and specialty firms 1. Original equipment manufacturers selling through dealer networks also compete with replacement parts 1.
Competition from Asia, particularly China, is growing through automated production and lower costs, which could pressure prices and margins 1. The company cites product quality, reliability, service, its patents for power emulators and its training offering as competitive advantages 1.
- Terrepower
Named as a competitor in hard parts in the company's risk disclosures 1.
- DRiV
Named as a competitor in hard parts, alongside Terrepower 1.
- Burke Porter
Named as a competitor in test solutions and diagnostic equipment 1.
- Langdi Measurement Control
Named as a competitor in test solutions and diagnostic equipment 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report16 Sept 2026Shareholder vote · Financial statements and exhibits
- Quarterly report10 Aug 2026
- Current report10 Aug 2026Results of operations · Financial statements and exhibits
- Proxy statement29 Jul 2026
- Current report02 Jul 2026Material agreement · Financial statements and exhibits
- Annual report08 Jun 2026
- Current report08 Jun 2026Results of operations · Financial statements and exhibits
- Quarterly report09 Feb 2026
- Current report09 Feb 2026Results of operations · Financial statements and exhibits
- Current report06 Jan 2026Departure or appointment of officers · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / Motorcar Parts of America, Inc. · 08 Jun 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Motorcar Parts of America, Inc. · 10 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Motorcar Parts of America, Inc. · 10 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.