Standard Motor Products, Inc. (SMP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-78.3%

$9.86

vs $45.40 price

Levered DCF

$34.93

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.37

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	19.6×	12.59×	13.68×	10.33×	12.78×	15.74×	20.56×	25.29×
P/B	1.19×	1.1×	1.36×	1.24×	1.93×	1.65×	2.36×	2.33×
P/S	0.45×	0.46×	0.64×	0.55×	0.89×	0.8×	1.05×	1×
EV / EBITDA	7.86×	11.1×	8.85×	7.39×	8.13×	6.75×	10.3×	10.72×
Gross margin	30.2%	28.2%	27.9%	27.2%	28.3%	29.1%	28.4%	28.6%
Operating margin	10.3%	9.5%	10.4%	10.1%	10.8%	11.0%	10.5%	9.7%
Net margin	2.3%	3.7%	4.6%	5.3%	7.0%	5.1%	5.1%	3.9%
Current ratio	2.13×	2.11×	2.45×	2.36×	1.49×	1.98×	1.8×	1.75×
Debt / equity	1.07×	1.07×	0.39×	0.46×	0.27×	0.06×	0.17×	0.11×
Interest coverage	5.6×	12.67×	12.94×	12.99×	69.47×	53.34×	22.53×	26.29×
Dividend yield	3.4%	3.8%	2.9%	3.1%	1.9%	1.2%	1.7%	1.7%
Payout ratio	66.0%	47.3%	39.9%	32.1%	24.4%	19.5%	35.6%	43.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	6.0%	8.7%	9.9%	12.0%	15.1%	10.4%	11.5%	9.2%
Return on invested capital	8.4%	7.3%	11.0%	10.4%	12.6%	14.0%	13.3%	13.5%
Return on assets	2.1%	3.0%	4.9%	5.8%	7.6%	6.0%	6.3%	5.1%
Free cash flow yield	2.3%	4.8%	13.4%	-7.1%	5.1%	8.8%	5.1%	4.6%
Earnings yield	5.1%	7.9%	7.3%	9.7%	7.8%	6.3%	4.9%	4.0%
Enterprise value	$1.5B	$1.3B	$1.1B	$1B	$1.3B	$918.5M	$1.3B	$1.1B
Net debt / EBITDA	3.54×	5.29×	1.75×	1.89×	0.86×	0.1×	0.61×	0.36×
Cash conversion cycle (days)	206	224	199	212	190	185	173	182