MPAA in three months: buy, wait or sell?
Stop guessing. Get the call, a three-month target price, the best and worst cases, and a source for every claim.
- Buy / Wait / Sell rating
- 3-month target price
- Bear · Base · Bull
- vs. the market
What happened with MPAA today?
No read yet
Uses news and trading volume to explain the day’s move and how it relates to the market.
Stop guessing. Get the call, a three-month target price, the best and worst cases, and a source for every claim.
Motorcar Parts of America supplies parts used to replace worn or failed vehicle components, predominantly in the United States. Alternators and starters generate most of its sales, with brake-related products providing the next-largest share. Buyers include Advance Auto Parts, AutoZone, Genuine Parts (NAPA), and O’Reilly Auto Parts, which serve drivers doing their own repairs and professional installers.
Most products are remanufactured: the company takes used parts returned by customers or bought from brokers, dismantles and cleans them, replaces worn components, and tests the rebuilt units. It sells products under customers’ private labels and its own brands, including Quality-Built and Pure Energy. This process depends on a continuing supply of usable old parts; not every returned unit can be rebuilt.
Its three largest customers provide most of its revenue, and the largest alone supplies a substantial share. Long-term agreements often make it the exclusive or primary supplier for particular product categories, but require ongoing performance standards and give customers price concessions, marketing support, and favorable payment terms. To collect cash sooner, the company can sell certain customer invoices to those customers’ banks at a discount.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
AutoZone buys replacement hard parts from Motorcar Parts of America to resell to retail and commercial customers, making its parts demand relevant to MPAA’s sales. Watch AutoZone’s commercial parts business, not repair-service revenue: it does not charge for repairs or installation.
O’Reilly buys Motorcar Parts of America’s replacement hard parts for DIY customers and professional repair providers across North America, linking MPAA’s sales to both groups. Watch both sides of O’Reilly’s business: each supplied approximately half of its 2025 sales.
Advance Auto Parts buys Motorcar Parts of America’s replacement hard parts to sell to professional installers and DIY customers, so changes in its retail footprint matter to MPAA’s sales channel. Advance closed 522 stores and opened 39 in 2025, completing the store-footprint portion of its restructuring plan.
Genuine Parts’ NAPA business buys Motorcar Parts of America’s replacement hard parts for repair shops and retail customers, giving MPAA a route into both markets. Watch Genuine Parts’ automotive business rather than its industrial sales; commercial customers accounted for approximately 80% of combined Automotive segment sales.
Dorman Products and Motorcar Parts of America both sell light- and heavy-duty replacement parts, so demand to maintain vehicles already on the road matters to both. Dorman’s light- and heavy-duty parts sales offer a closer read on that shared demand than its specialty-vehicle business.
Standard Motor Products and Motorcar Parts of America both sell replacement parts to North American retailers and distributors that supply vehicle repairs, exposing them to the same repair demand. Watch Standard Motor Products’ sales to those buyers, whose customers include professional technicians and people repairing their own vehicles.
Genuine Parts Company earningsGPC
Genuine Parts’ report will show whether NAPA’s automotive business, serving repair shops and retail customers, is still moving Motorcar Parts of America parts through the channel.
Watch Genuine Parts’ automotive sales, especially sales to commercial customers, not its industrial business. Steady or rising sales would show repair demand served by NAPA can support Motorcar Parts of America shipments through this channel. Weaker sales would signal pressure on that route, though not prove MPAA’s own sales must fall.
Fed Interest Rate Decision
The Fed’s decision sets the benchmark for borrowing costs, which can change the interest Motorcar Parts of America pays on its variable-rate credit facility and the cash it has left for operations.
Expected4.0%Last release4.0%
If it comes in above expectations
If rates rise more than expected, interest on the company’s variable-rate borrowing may increase, leaving less cash for operations and other needs.
If it comes in below expectations
If rates rise less than expected or fall more, interest on the company’s variable-rate borrowing may increase less or decrease, leaving more cash for operations and other needs.
Motorcar Parts of America, Inc. earningsThis company
Motorcar Parts of America’s report will show whether supplying big auto-parts chains is turning sales growth into steadier profit and cash flow.
Read hard-parts sales alongside gross margin and operating cash flow. Sales growth with a steady margin and stronger cash flow would show that growth from major customers is not being consumed by price concessions, core costs or working-capital needs. If sales rise but margin or cash flow weakens, those pressures are eating into the gain. The test is whether growth brings better profit quality and cash conversion.