CarParts.com, Inc. (NASDAQ: PRTS)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001378950
Market Cap 29.41 Mn
P/B 0.46
P/E -0.54
P/S 0.05
ROIC (Qtr) -46.40
Div Yield % 0.00
Rev 1y % (Qtr) -11.73
Total Debt (Qtr) 56.69 Mn
Debt/Equity (Qtr) 0.88

About

CarParts.com, Inc., also known as PRTS, is a pioneering eCommerce company that has transformed the way drivers shop for automotive parts. With a rich history spanning over two decades, the company has established itself as a leading provider of solutions for automotive repair and maintenance, offering a user-friendly online shopping experience. CarParts.com's primary business activities revolve around the sale of aftermarket auto parts, which are categorized into three main groups: replacement parts, hard parts, and performance parts and accessories....

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 36.01M provide 4.53x coverage of short-term debt 7.95M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 200.28M provides 3.53x coverage of total debt 56.69M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 200.28M provides 3.36x coverage of working capital 59.68M, indicating strong operational backing.
  • Tangible assets of 200.28M provide robust 8.83x coverage of other current liabilities 22.67M, indicating strong asset backing.
  • Strong cash position of 36.01M provides 1.59x coverage of other current liabilities 22.67M, indicating excellent liquidity.

Bear case

  • The company's operating cash flow of (24.68M) shows concerning coverage of stock compensation expenses of 10.51M, with a -2.35 ratio indicating potential earnings quality issues.
  • Free cash flow of (33.47M) provides weak coverage of capital expenditures of 8.78M, with a -3.81 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (24.68M) provides minimal -83.38x coverage of tax expenses of 296000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (52.51M) show weak coverage of depreciation charges of 21.37M, with a -2.46 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (33.47M) represents just -1.57x of debt issuance 21.32M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Auto Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ORLY O Reilly Automotive Inc 80.07 Bn 32.23 4.59 8.40 Bn
2 AZO Autozone Inc 57.24 Bn 23.23 2.97 12.05 Bn
3 APTV Aptiv PLC 19.67 Bn 66.67 0.98 8.03 Bn
4 GPC Genuine Parts Co 17.83 Bn 22.05 0.74 6.40 Bn
5 MGA Magna International Inc 15.86 Bn 15.36 0.38 7.48 Bn
6 ALV Autoliv Inc 9.72 Bn 12.92 0.92 2.19 Bn
7 MBLY Mobileye Global Inc. 9.47 Bn -28.17 4.88 0.00 Bn
8 BWA Borgwarner Inc 8.87 Bn 66.21 0.63 3.90 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.28 1.16
EV to Cash from Ops. EV/CFO -2.28 9.30
EV to Debt EV to Debt 0.99 34.64
EV to EBIT EV/EBIT -1.07 4.45
EV to EBITDA EV/EBITDA -1.78 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF -1.68 17.25
EV to Market Cap EV to Market Cap 1.92 1.58
EV to Revenue EV/Rev 0.10 3.42
Price to Book Value [P/B] P/B 0.46 -0.33
Price to Earnings [P/E] P/E -0.54 11.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.18
Dividend per Basic Share Div per Share (Qtr) 0.00 0.41
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 13.70
Interest Coverage Int. cover (Qtr) -35.10 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 61.23 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.50 27.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -75.85 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -120.96 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -74.94 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) -72.75 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) -77.78 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) -52.25 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -10.76 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.80 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.25
Cash Ratio Cash Ratio (Qtr) 0.43 0.69
Current Ratio Curr Ratio (Qtr) 1.71 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.88 0.22
Interest Cover Ratio Int Coverage (Qtr) -35.10 -110.44
Times Interest Earned Times Interest Earned (Qtr) -35.10 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -5.60 -952.44
EBIT Margin % EBIT Margin % (Qtr) -9.37 -997.37
EBT Margin % EBT Margin % (Qtr) -9.63 -987.56
Gross Margin % Gross Margin % (Qtr) 32.60 -122.43
Net Profit Margin % Net Margin % (Qtr) -9.70 -979.78