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1. Company Snapshot

1.a. Company Description

Standard Motor Products, Inc.manufactures and distributes replacement parts that are used in the maintenance, repair, and service of vehicles in the automotive aftermarket industry with a complementary focus on specialized original equipment parts for manufacturers across agriculture, heavy duty, and construction equipment industries.The company's Engine Management segment provides electronic ignition control modules, camshaft and crankshaft position sensors, ignition wires and coils, switches and relays, exhaust gas recirculation valves, pressure and temperature sensors, variable valve timing components, mass airflow and fuel pressure sensors, electronic throttle bodies, and diesel injectors and pumps; and anti-lock brake, vehicle speed, tire pressure monitoring, and park assist sensors.


This segment offers its products under the Standard, Blue Streak, BWD, Intermotor, OEM, SMP Blue Streak Canada, GP Sorensen, Locksmart, Standard Motorcycle, and Blue Streak Race Wires brands.Its Temperature Control segment provides components for the temperature control systems, engine cooling systems, power window accessories, and windshield washer systems of motor vehicles under the Four Seasons, ACI, Hayden, Factory Air, and Maxair brands.Its products include air conditioning compressors and repair kits, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, actuators, hose assemblies, thermal expansion devices, heater valves, heater cores, A/C service tools and chemicals, fan assemblies, fan clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps.


The company serves primarily automotive aftermarket retailers, warehouse distributors, original equipment manufacturers, and original equipment service part operations in the United States, Canada, Europe, Asia, Mexico, and other Latin American countries.The company was founded in 1919 and is headquartered in Long Island City, New York.

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1.b. Last Insights on SMP

Standard Motor Products, Inc.'s recent performance was driven by strong Q2 earnings, with net sales surging 26.7% year-over-year to $493.9 million, and adjusted EPS of $1.29, beating estimates. The company's acquisition of Nissens contributed to growth, with revenue up 3.5% excluding Nissens. A 190 basis point increase in adjusted EBITDA margin to 12.0% also boosted performance. The company raised its full-year sales guidance to the low 20's percent growth range, citing strong first-half results. (Source: Q2 2025 Earnings Release)

1.c. Company Highlights

2. Standard Motor Products' Q3 2025 Earnings: A Strong Performance

Standard Motor Products reported a robust third quarter 2025, with consolidated sales increasing by 24.9% to a significant figure, and adjusted EBITDA margin expanding to 12.4% of net sales. The company's non-GAAP diluted earnings per share came in at $1.36, beating estimates of $1.14, representing a 6.3% increase. Revenue growth was driven by a 4% increase in the legacy business and the inclusion of Nissens Automotive, which contributed $85 million in revenue. For the first nine months, sales have increased by 25.5% over last year, with adjusted EBITDA margin up 170 basis points.

Publication Date: Nov -18

📋 Highlights
  • Top-Line Growth:: Consolidated sales increased 24.9% year-over-year, with first 9 months sales up 25.5% including Nissens' contribution.
  • EBITDA Margin Expansion:: Adjusted EBITDA margin reached 12.4% of net sales, up 170 basis points year-to-date, excluding Nissens.
  • Nissens Performance:: Acquired Nissens contributed $85M in revenue, driving 15% sales growth in Temperature Control segment.
  • EPS Growth:: Non-GAAP diluted earnings per share rose 6.3% for the quarter and 27.8% year-to-date.
  • Guidance Update:: Raised full-year sales guidance to low-to-mid 20% growth and adjusted EBITDA margin target to 10.5–11% of net sales.

Segment Performance

The North American aftermarket business, comprising Vehicle Control and Temperature Control segments, showed varying performance. Vehicle Control sales were down 1.6% due to a difficult comparison, but point-of-sale (POS) continued to trend positively, up mid-single digits in the quarter for large accounts. Temperature Control sales remained robust, up nearly 15% over last year, driven by strong brand recognition and execution. As Eric Sills noted, "We believe our customers are gaining share due to strong brand recognition and execution." Nissens Automotive, acquired last November, continued to perform well, with sales remaining strong in the quarter.

Integration and Synergies

The integration of Nissens Automotive is progressing well, with the company focusing on developing meaningful synergies, including cost savings and growth opportunities through cross-selling. Standard Motor Products is expanding product line offerings in areas where one company is stronger than the other, filling holes in each other's product offerings, and launching new subcategories. This is expected to drive future growth and increase the company's global competitiveness.

Outlook and Valuation

Standard Motor Products is raising its sales guidance for the full year to a low-to-mid-20% range and updating its outlook for adjusted EBITDA margin to 10.5%-11% of net sales. With a P/E Ratio of 12.29 and an EV/EBITDA of 9.63, the company's valuation appears reasonable. The market is expecting revenue growth of 3.8% next year, which is relatively modest compared to the company's recent performance. The Dividend Yield of 3.38% and Free Cash Flow Yield of 5.57% also make the stock an attractive proposition for income investors.

3. NewsRoom

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3 Auto Replacement Parts Stocks to Benefit From Aging Fleet

Nov -19

Source: zacks.com

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4 Stocks With Solid Net Profit Margins to Enhance Portfolio Returns

Nov -12

Source: zacks.com

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Here's Why Momentum in Standard Motor Products (SMP) Should Keep going

Nov -10

Source: zacks.com

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Standard Motor Q3 Earnings Top Estimates, Guidance Revised

Nov -05

Source: zacks.com

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AlphaQuest LLC Sells 19,087 Shares of Standard Motor Products, Inc. $SMP

Nov -04

Source: defenseworld.net

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Standard Motor Products, Inc. (SMP) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Standard Motor Products, Inc. Releases Third Quarter 2025 Results and Quarterly Dividend

Oct -31

Source: prnewswire.com

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Standard Motor Products, Inc. Announces Third Quarter 2025 Earnings Conference Call

Oct -29

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.72%)

6. Segments

Vehicle Control

Expected Growth: 2.5%

The 2.5% growth in Vehicle Control from Standard Motor Products, Inc. is driven by increasing demand for advanced driver-assistance systems, rising adoption of electric vehicles, and growing need for vehicle safety and security features. Additionally, OEMs' focus on reducing emissions and improving fuel efficiency is boosting demand for advanced vehicle control systems.

Temperature Control

Expected Growth: 2.8%

Temperature Control from Standard Motor Products, Inc. growth of 2.8% driven by increasing demand for electric vehicles, rising adoption of advanced driver-assistance systems, and growing need for thermal management in automotive and industrial applications.

Engineered Solutions

Expected Growth: 3.2%

Engineered Solutions from Standard Motor Products, Inc. achieved 3.2% growth driven by increasing demand for fuel-efficient and emission-reducing technologies, expansion into new markets, and strategic partnerships. Additionally, the segment benefited from investments in research and development, resulting in innovative products and cost savings.

7. Detailed Products

Ignition Coils

Standard Motor Products, Inc. offers a wide range of ignition coils designed to meet the specific needs of various vehicle applications.

Fuel Injectors

Standard Motor Products, Inc. provides high-quality fuel injectors that ensure precise fuel delivery and optimal engine performance.

Oxygen Sensors

Standard Motor Products, Inc. offers a comprehensive line of oxygen sensors designed to meet the specific needs of various vehicle applications.

Spark Plugs

Standard Motor Products, Inc. provides high-quality spark plugs designed to meet the specific needs of various vehicle applications.

Engine Management Sensors

Standard Motor Products, Inc. offers a wide range of engine management sensors designed to meet the specific needs of various vehicle applications.

Belts and Hoses

Standard Motor Products, Inc. provides high-quality belts and hoses designed to meet the specific needs of various vehicle applications.

Air Fuel Management

Standard Motor Products, Inc. offers a comprehensive line of air fuel management products designed to meet the specific needs of various vehicle applications.

Temperature Control

Standard Motor Products, Inc. provides high-quality temperature control products designed to meet the specific needs of various vehicle applications.

8. Standard Motor Products, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Standard Motor Products, Inc. is medium due to the availability of alternative products from competitors.

Bargaining Power Of Customers

The bargaining power of customers for Standard Motor Products, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Standard Motor Products, Inc. is medium due to the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants for Standard Motor Products, Inc. is high due to the relatively low barriers to entry in the automotive parts industry.

Intensity Of Rivalry

The intensity of rivalry for Standard Motor Products, Inc. is high due to the highly competitive nature of the automotive parts industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.85%
Debt Cost 6.99%
Equity Weight 72.15%
Equity Cost 7.00%
WACC 7.00%
Leverage 38.61%

11. Quality Control: Standard Motor Products, Inc. passed 7 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

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Standard Motor Products

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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

36.49$

Current Price

36.49$

Potential

-0.00%

Expected Cash-Flows