Motorcar Parts of AmericaMPAA +3.95%70 Gross Margin % is 23.73% as of Mar. 2026, which is 17% above its 10-year median of 20.25. GuruFocus rates MPAA with a GF Score™ of 70/100 and a GF Value™ of $9.67 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Motorcar Parts of America ranks better than 51.56% on this metric.
Motorcar Parts of America (NAS:MPAA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Motorcar Parts of America had a gross margin of 23.73% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Motorcar Parts of America Gross Margin % Related Terms
Motorcar Parts of America Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MPAA vs SRI, CVGI, INVZ: Gross Margin % Comparison
For the Auto Parts subindustry, Motorcar Parts of America's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Motorcar Parts of America Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcar Parts of America's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Motorcar Parts of America's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Motorcar Parts of America (MPAA) has a Gross Margin % of 23.73% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Motorcar Parts of America and its competitors. This is 17% above median its historical median of 20.25. Over the past decade, Motorcar Parts of America's Gross Margin % has ranged from 16.68 to 27.70. According to the industry distribution chart, Motorcar Parts of America ranks #636 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 48.4%.
Is Motorcar Parts of America's Gross Margin % too high?
Motorcar Parts of America's current Gross Margin % of 23.73% is 17% above median its 10-year median of 20.25. Over the past 10 years, this metric has ranged from a low of 16.68 to a high of 27.70. The Vehicles & Parts industry median Gross Margin % is 19.84. Motorcar Parts of America's value of 23.73% is 19.6% above this industry median. Based on the distribution chart, Motorcar Parts of America ranks #636 out of 1313 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Motorcar Parts of America has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Motorcar Parts of America's Gross Margin % compare to SRI and CVGI?
According to the Vehicles & Parts industry distribution chart, Motorcar Parts of America ranks #636 out of 1313 companies for Gross Margin %. This puts Motorcar Parts of America in the upper half of its industry. The industry median Gross Margin % is 19.84. Motorcar Parts of America's value of 23.73% is 19.6% above this benchmark. Historically, Motorcar Parts of America's own Gross Margin % has ranged from 16.68 to 27.70 over the past decade. While the company's 10-year median is 20.25 vs. the industry median of 19.84, Motorcar Parts of America has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Motorcar Parts of America's current Gross Margin % of 23.73% is 19.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Motorcar Parts of America and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorcar Parts of America's current Gross Margin % is 23.73%, which is 17% above median its own 10-year median of 20.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motorcar Parts of America stock overvalued right now?
Based on GuruFocus' analysis, Motorcar Parts of America (MPAA) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.67, compared to a current price of $15.51 — trading 60.4% above its estimated fair value. The current Gross Margin % is 23.73%, which is 17% above median its 10-year median of 20.25 and 19.6% above the Vehicles & Parts industry median of 19.84. Motorcar Parts of America's overall GF Score™ is 70/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Motorcar Parts of America (MPAA), the current Gross Margin % is 23.73% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Motorcar Parts of America (MPAA) Overvalued in 2026?
Based on GuruFocus' analysis, Motorcar Parts of America stock appears to be overvalued.
The current stock price of $15.51 is trading 60.4% above its estimated GF Value™ of $9.67.
GuruFocus considers Motorcar Parts of America to be Significantly Overvalued.
Key valuation signals for MPAA:
Gross Margin %: 23.73% (17% above median its 10-year median of 20.25)
GF Value™: $9.67 vs. price of $15.51 (60.4% above fair value)
Industry Position: 19.6% above the Vehicles & Parts median (#636 of 1313)
No single metric tells the full story. See the MPAA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Motorcar Parts of America Inc is a supplier of automotive aftermarket non-discretionary replacement parts, test solutions, and diagnostic equipment. Its replacement parts are mainly sold to automotive retail chain stores, warehouse distributors across North America, and automobile manufacturers for aftermarket and warranty replacement programs. The Company's test solutions and diagnostic equipment serve the automotive component and powertrain testing market. Its product portfolio includes rotating electrical products such as alternators and starters; brake-related products including brake calipers, brake rotors, brake pads, brake master cylinders, and wheel hub assemblies and bearings; and other products. Its segments are Hard Parts, Test Solutions and Diagnostic Equipment, and Heavy Duty.
70GF Score
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