Motorcar Parts of AmericaMPAA +3.95%70 ROE % is 14.83% as of Mar. 2026, which is 2646% above its 10-year median of 0.54. 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 1,308 Vehicles & Parts companies, Motorcar Parts of America ranks worse than 58.03% on this metric.
The historical rank and industry rank for Motorcar Parts of America's ROE % or its related term are showing as below:
MPAA'
s ROE % Range Over the Past 10 Years
Min: -16.26 Med: 0.54 Max: 16.86
Current: 4.76
During the past 13 years, Motorcar Parts of America's highest ROE % was 16.86%. The lowest was -16.26%. And the median was 0.54%.
MPAA's ROE % is ranked worse than 58.03% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs MPAA: 4.76
Motorcar Parts of America (NAS:MPAA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Auto Parts subindustry, Motorcar Parts of America's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcar Parts of America's ROE % distribution charts can be found below:
* The bar in red indicates where Motorcar Parts of America's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Motorcar Parts of America (MPAA) has a ROE % of 14.83% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Motorcar Parts of America and its competitors. This is 2646% above median its historical median of 0.54. According to the industry distribution chart, Motorcar Parts of America ranks #759 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 58%.
Is Motorcar Parts of America's ROE % too high?
Motorcar Parts of America's current ROE % of 14.83% is 2646% above median its 10-year median of 0.54. The Vehicles & Parts industry median ROE % is 6.62. Motorcar Parts of America's value of 14.83% is 124% above this industry median. Based on the distribution chart, Motorcar Parts of America ranks #759 out of 1308 companies in the Vehicles & Parts industry, which is below 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 ROE % compare to SRI and CVGI?
According to the Vehicles & Parts industry distribution chart, Motorcar Parts of America ranks #759 out of 1308 companies for ROE %. This places Motorcar Parts of America in the lower half of its industry. The industry median ROE % is 6.62. Motorcar Parts of America's value of 14.83% is 124% above this benchmark. While the company's 10-year median is 0.54 vs. the industry median of 6.62, 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 ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Motorcar Parts of America's current ROE % of 14.83% is 124% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Motorcar Parts of America and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorcar Parts of America's current ROE % is 14.83%, which is 2646% above median its own 10-year median of 0.54. 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 ROE % is 14.83%, which is 2646% above median its 10-year median of 0.54 and 124% above the Vehicles & Parts industry median of 6.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Motorcar Parts of America (MPAA), the current ROE % is 14.83% 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:
ROE %: 14.83% (2646% above median its 10-year median of 0.54)
GF Value™: $9.67 vs. price of $15.51 (60.4% above fair value)
Industry Position: 124% above the Vehicles & Parts median (#759 of 1308)
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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