Motorcar Parts of America, Inc. (NASDAQ:MPAA)

CAPS Rating: 2 out of 5

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2
Player Avatar dsp444 (79.21) Submitted: 11/19/2010 2:19:40 PM : Outperform Start Price: $12.63 MPAA Score: -29.13

On 30 stocks over $50 million market cap magic formula screen.4-star CAPS rating and Schwab rates it an A. A stock in a very cyclical industry…and it appears the auto industry in on an upswing rather than headed down. So this would be a good time to get into the stock. Financials look OK. Quite a bit of growth over the last year and strong growth is predicted to continue (of course), making the TTM PE of 13.9 seem low. Had no debt, but ended up taking a very small amount of debt last year, which it appears to be paying off slowly. Cash flows and earnings have been positive, although there isn’t a lot of cash and the current ratio is small, I calculate a book value of about $8.50 per share (and its not decreasing), which compares favorably with a stock price of only $12.50 (granted much of this book value is likely illiquid). Going to purchase in my real money portfolio.

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Member Avatar john603 (55.42) Submitted: 2/14/2011 7:31:05 PM
Recs: 0

I think you made a good choice. Ford is way down. This guy makes money and the EPS looks like the real GROWTH

Member Avatar feynmanshomeboy (56.41) Submitted: 5/26/2011 9:23:09 PM
Recs: 0

Respectfully disagree that MPAA will move with the auto industry. Generally, their alternators and starters products get refurbished abroad and sold at your local parts store rather than put in new cars.

I think their business might be going through a short growth spurt, but do you see home auto repair becoming more popular in the long term?

Might be a good value, but I'm going to stay on the sidelines here; neutral outlook w/ no position.

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