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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Motorcar Parts of America's annualized ROCE % for the quarter that ended in Jun. 2026 was 1.29%.
Motorcar Parts of America (NAS:MPAA) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
* 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.
(1) Note:
The EBIT data used here is four times the quarterly (Jun. 2026) EBIT 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.
Motorcar Parts of America (MPAA) has a ROCE % of 1.29% as of Jun. 2026.
Is Motorcar Parts of America's ROCE % too high?
Motorcar Parts of America's current ROCE % is 1.29%. The Vehicles & Parts industry median ROCE % is 8.06. Motorcar Parts of America's value of 1.29% is 84% below this industry median. Overall, Motorcar Parts of America has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Motorcar Parts of America's ROCE % compare to MVST and SRI?
Motorcar Parts of America's ROCE % of 1.29% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 8.06. Motorcar Parts of America's value of 1.29% is 84% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 8.06, based on 1,316 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Motorcar Parts of America's current ROCE % of 1.29% is 84% below 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median ROCE % is 8.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorcar Parts of America's current ROCE % is 1.29%. 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 Modestly Overvalued. The stock's GF Value™ is $9.72, compared to a current price of $12.57 — trading 29.3% above its estimated fair value. The current ROCE % is 1.29% and 84% below the Vehicles & Parts industry median of 8.06. Motorcar Parts of America's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Motorcar Parts of America (MPAA), the current ROCE % is 1.29% as of Jun. 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 $12.57 is trading 29.3% above its estimated GF Value™ of $9.72.
GuruFocus considers Motorcar Parts of America to be Modestly Overvalued.
Key valuation signals for MPAA:
ROCE %: 1.29%
GF Value™: $9.72 vs. price of $12.57 (29.3% above fair value)
Industry Position: 84% below the Vehicles & Parts median
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.
66GF Score
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