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1. Company Snapshot

1.a. Company Description

CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines.It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories to individual consumers through its network of e-commerce websites and online marketplaces.The company also sells auto parts to collision repair shops; markets Kool-Vue products to auto parts wholesale distributors; and aftermarket catalytic converters under the Evan Fischer brand.


Its flagship websites include www.carparts.com, www.jcwhitney.com, www.autopartswarehouse.com and www.usautoparts.com.The company was formerly known as U.S. Auto Parts Network, Inc.and changed its name to CarParts.com, Inc.


in July 2020.CarParts.com, Inc.was incorporated in 1995 and is headquartered in Torrance, California.

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1.b. Last Insights on PRTS

The recent 3-month performance of CarParts.com, Inc. was negatively impacted by the company's decision to explore strategic alternatives, including a possible sale. This development, announced on March 5, 2025, has likely created uncertainty among investors and may have contributed to the company's recent struggles. Furthermore, the lack of a recent earnings release makes it challenging to assess the company's financial performance during this period.

1.c. Company Highlights

2. Margins Under Pressure as Growth Slows

CarParts.com reported second-quarter 2025 results that were mixed relative to expectations. Revenue came in at $151.9 million, up 5% from the prior year, but gross margin contracted to 32.8% from 33.5% a year ago. The adjusted EBITDA loss narrowed to $3.1 million, but actual EPS of -$0.23 missed estimates of -$0.16. The company's gross profit grew just 3% to $49.8 million, reflecting the challenging operating environment.

Publication Date: Aug -21

📋 Highlights
  • Revenue Growth: Rose to $151.9M (5% YoY increase from $144.3M)
  • Gross Margin Decline: Dropped to 32.8% (from 33.5% prior year despite $49.8M gross profit)
  • Adjusted EBITDA Loss: Closed Q2 at -$3.1M, though turned positive in June
  • Restructuring Savings: Aiming for $10M annualized savings via Virginia facility closure and headcount reductions
  • Customer Engagement Metrics: 1M mobile app users (12% e-commerce revenue) and 7,000+ CarParts+ members

Operational Efficiency and Strategic Alternatives

The company is exploring strategic alternatives, including a potential sale, and is working to mitigate tariff impacts through cost concessions, dynamic pricing, and supply chain optimizations. According to the management, "We are focused on executing our strategic plan, driving operational efficiencies, and positioning the company for long-term success." The company expects to generate $10 million in annualized cost savings from its restructuring efforts, which include the closure of its Virginia facility and corporate headcount reductions.

Growth Initiatives and Membership Program

CarParts.com has made progress in its growth initiatives, with over 1 million mobile app users accounting for 12% of e-commerce revenues. The company's CarParts+ membership program has surpassed 7,000 paid members, providing a recurring revenue stream. The company’s priorities for the rest of the year include expanding its product offering, monetizing its website visits with high-margin fee income, and scaling its B2B offering.

Valuation and Outlook

With a P/S Ratio of 0.07 and an EV/EBITDA of -1.66, the stock appears to be trading at a distressed valuation. The ROE of -67.29% and ROIC of -47.47% indicate that the company is currently not generating profitable returns on shareholders' equity and invested capital. Analysts estimate next year's revenue growth at 2.6%, which seems conservative given the company's growth initiatives. However, the current valuation multiples suggest that the market is already pricing in significant challenges for the company.

3. NewsRoom

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Comparing Mobileye Global (NASDAQ:MBLY) & CarParts.com (NASDAQ:PRTS)

Dec -04

Source: defenseworld.net

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CarParts.com (NASDAQ:PRTS) and Faraday Future Intelligent Electric (NASDAQ:FFAI) Head to Head Comparison

Dec -04

Source: defenseworld.net

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CarParts.com Refocuses on Profitable eCommerce Growth

Nov -11

Source: pymnts.com

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CarParts.com, Inc. (PRTS) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -10

Source: seekingalpha.com

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CarParts.com Reports Third Quarter 2025 Results

Nov -10

Source: prnewswire.com

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CarParts.com Announces Date Change for its Third Quarter 2025 Conference Call

Oct -31

Source: prnewswire.com

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CarParts.com Sets Third Quarter 2025 Conference Call for Tuesday, November 11, 2025

Oct -21

Source: prnewswire.com

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Trump approves tariff relief for US auto production, issues new truck duties

Oct -17

Source: reuters.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.14%)

6. Segments

House Brands - Replacement Parts

Expected Growth: 12.0%

Strong online presence, increasing demand for DIY car repairs, and strategic partnerships drive 12.0% growth in House Brands - Replacement Parts from CarParts.com, Inc. Additionally, expanding product offerings, competitive pricing, and efficient supply chain management contribute to the segment's rapid expansion.

House Brands - Hard Parts

Expected Growth: 11.5%

Strong online presence, increasing demand for DIY car repairs, and strategic partnerships drive 11.5% growth in House Brands - Hard Parts from CarParts.com, Inc. Additionally, expanding product offerings, competitive pricing, and efficient supply chain management contribute to the segment's growth.

Branded - Hard Parts

Expected Growth: 13.5%

The 13.5% growth in Branded - Hard Parts from CarParts.com, Inc. is driven by increasing online demand for DIY car repairs, rising average order value, and expanding product offerings. Additionally, strategic partnerships, effective marketing, and a strong e-commerce platform contribute to the segment's growth.

Branded - Performance

Expected Growth: 14.0%

Strong e-commerce platform, increasing online car parts demand, effective marketing strategies, and expanding product offerings contribute to Branded segment's 14.0% growth. Additionally, strategic partnerships, improved customer experience, and efficient supply chain management also drive growth.

Branded - Replacement Parts

Expected Growth: 12.5%

Strong online presence, increasing demand for DIY car repairs, and growing market share in the automotive aftermarket drive the 12.5% growth of Branded - Replacement Parts from CarParts.com, Inc. Additionally, expanding product offerings, competitive pricing, and efficient supply chain management contribute to the segment's growth.

7. Detailed Products

Auto Parts

CarParts.com offers a wide range of auto parts, including engine components, brake pads, suspension parts, and more.

Performance Parts

High-performance parts for enthusiasts, including air intakes, exhaust systems, and suspension upgrades.

Accessories

Interior and exterior accessories, such as floor mats, seat covers, and car covers.

Collision Repair Parts

Replacement parts for collision repair, including bumpers, fenders, and body kits.

Maintenance and Repair

Products for routine maintenance and repair, including oil filters, spark plugs, and brake fluid.

Tools and Equipment

Specialized tools and equipment for DIY enthusiasts and professional mechanics.

8. CarParts.com, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CarParts.com, Inc. faces moderate threat from substitutes as customers have limited alternatives for purchasing auto parts online. However, the company's strong brand presence and wide product offerings mitigate this threat to some extent.

Bargaining Power Of Customers

CarParts.com, Inc. has a large customer base, but individual customers do not have significant bargaining power due to the company's dominant market position and wide product offerings.

Bargaining Power Of Suppliers

CarParts.com, Inc. relies on a diverse supplier base, which reduces the bargaining power of individual suppliers. However, the company still faces some pressure from suppliers, particularly those providing high-demand products.

Threat Of New Entrants

CarParts.com, Inc. operates in a highly competitive market, but the company's strong brand presence, wide product offerings, and established logistics network create barriers to entry for new entrants.

Intensity Of Rivalry

CarParts.com, Inc. operates in a highly competitive market with several established players, leading to intense rivalry. The company must continuously innovate and improve its offerings to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.26%
Debt Cost 3.95%
Equity Weight 74.74%
Equity Cost 14.11%
WACC 11.54%
Leverage 33.79%

11. Quality Control: CarParts.com, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
National Vision

A-Score: 4.1/10

Value: 4.7

Growth: 2.4

Quality: 3.2

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Kirkland's

A-Score: 3.9/10

Value: 10.0

Growth: 2.1

Quality: 5.9

Yield: 0.0

Momentum: 3.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
CarParts

A-Score: 3.7/10

Value: 9.8

Growth: 4.0

Quality: 4.0

Yield: 0.0

Momentum: 3.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
GrowGen

A-Score: 3.4/10

Value: 9.4

Growth: 2.1

Quality: 4.2

Yield: 0.0

Momentum: 3.5

Volatility: 1.3

1-Year Total Return ->

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Solo Brands

A-Score: 3.4/10

Value: 10.0

Growth: 5.7

Quality: 3.7

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Beyond

A-Score: 3.2/10

Value: 8.4

Growth: 0.7

Quality: 3.4

Yield: 0.0

Momentum: 5.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.44$

Current Price

0.44$

Potential

-0.00%

Expected Cash-Flows