QuarterHawk — Equity ResearchQuarterHawk — Equity Research

Motorcar Parts of America, Inc. (MPAA)

Consumer Cyclical

No action
Fundamental
3
Sentiment
2
Technical
1

Do Nothing: qualitativeScore is 2 (strategy requires at least 3), and liquidity also fails both floors (20-day avg dollar volume $1.53M; recent 3-session regular-session avg $1.43M).

Analysis as of 2026-08-19· more than 2 trading days ago

Company overview

Motorcar Parts of America, Inc. (MPAA) manufactures and supplies aftermarket components for vehicles, industrial machinery, and more. Its products include electrical rotating components, braking system parts, and advanced testing solutions for electric vehicle powertrains. MPAA distributes its products across North America through retail chains and direct supply to automobile manufacturers.

Fundamental

fair
Fundamental3
Mixed fundamentals

MPAA shows potential upside on valuation but faces recent financial deterioration and leverage concerns.

Mixed fundamentals: the stock looks cheap on EV/Sales and EV/EBITDA and intrinsic-value models/price targets imply upside, but the most recent quarter reported a large loss with negative operating cash flow. Leverage is moderate-high with thin interest coverage and a low Altman Z-Score, partially offset by revolver liquidity and a recently extended credit facility maturity. This is best approached as a turnaround/execution story that needs confirmation of margin and cash-flow stabilization.

Sentiment

weak
Sentiment2
Bearish sentiment

Recent sentiment has turned bearish following an earnings miss and sales decline.

Last ~14d media sentiment turned bearish-leaning (polarity_score ≈ -0.26) versus a bullish 30–90d baseline (+0.54), driven by the Aug 10 fiscal Q1 earnings miss / sales decline despite reaffirmed full-year guidance (announced). The Aug 6 credit-facility extension is a modest offset and the legal scan shows no on-topic investigation overhang (text-extraction errors noted), but the sharp sentiment deterioration with limited bullish follow-through keeps the near-term setup weak (moderate red-flag cap applied).

Technical

very weak
Technical1
Weak technicals

The stock is in a downtrend, below key moving averages, with negative momentum indicators.

Score 1: the post-earnings bounce failed to repair trend. Price sits below SMA20/SMA50/SMA200 and EMA9/EMA21, MACD (-0.51) is below both zero and its signal (-0.33), and ADX 29.09 shows the prevailing downtrend still has force; RSI 30.74 only supports bounce potential, not confirmation.

You’re looking at 2026-08-19 — more than 2 trading days ago.

Subscribers saw this then, and see today’s score, verdict and trade plan now.

Not financial advice. For informational and educational purposes only.