SMPStandard Motor Products, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.1×) and margins widening.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SMP?
Standard Motor Products, Inc. earns 9.7% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 0.65 points above what the capital costs: growth creates value
- Operating margin
- 8.4%
Operating margin · Auto Parts median 5.9% · 12 months to Q2 2026
- Cash conversion
- 1.09×
Cash conversion · 1.02× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.0%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 9.7% |
| FY2021 | 9.9% |
| FY2022 | 7.6% |
| FY2023 | 6.8% |
| FY2024 | 5.5% |
| FY2025 | 7.6% |
Details›
- Gross margin12 months to Q2 2026
- 32%
- Operating margin12 months to Q2 2026
- 8.4%
- Net margin12 months to Q2 2026
- 2.8%
- Free cash flow margin
- 4.8%
- Revenue, trailing twelve months
- $1.84B
- Free cash flow, trailing twelve months
- $87M
- Net income, trailing twelve months
- $51M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.