Standard Motor Products: Quietly Building A Global Aftermarket Position

Investing.com • Jan 7, 2026 4:38am (New York) •By Gurufocus

Standard Motor Products: Quietly Building A Global Aftermarket Position

Standard Motor Products (SMP) has transformed into a global aftermarket player following its $388 million acquisition of Nissens in Q4 2024. The company benefits from aging vehicle fleets requiring non-discretionary replacement parts and has expanded into thermal management systems relevant across ICE, hybrid, and EV platforms. Q2 2025 results showed strong performance with gross profits up 36% to $151 million, and management raised full-year revenue guidance to low 20s. The company trades at 8.9x EV/EBITDA, appearing undervalued compared to peers, with fair value estimated at 9-9.5x EV/EBITDA, suggesting 17.6% upside potential.

← Back to news Read Original Article

Insights

DAVE neutral

Mentioned as top holding but no specific performance details provided

SMP positive

Strong Q2 2025 results with 36% gross profit growth, successful Nissens integration expanding global reach and margins, raised full-year guidance, improved cash flows, and valuation appears discounted at 8.9x EV/EBITDA versus peers at 10.85x. Strategic positioning for long-term aftermarket demand and EV transition provides compelling upside.

Keywords

#automotive aftermarket #fleet electrification #thermal management #M&A strategy #tariff resilience #EBITDA margins #valuation discount

Tickers

SMP DORM LKQ GPC

← Prev: TSMC: Why an Nvidia Chip Could Supercharge the Next Rally

Next: Dominion Energy: A Simpler, Cleaner Utility Emerging →