The investment objective of the AlphaMark Actively Managed Small Cap ETF seeks to target stocks exhibiting consistent growth, earnings and cash flow to arrive at a portfolio of 25-40 stocks based on earnings momentum, cash flows relative to capital spending, and reviews of financial statements, enterprise value and management.
SMP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Standard Motor Products Inc. To summarize, we found that Standard Motor Products Inc ranked in the 47th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 14% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for SMP, they are:
Interest coverage, a measure of earnings relative to interest payments, is 16.69; that's higher than 88.07% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
The business' balance sheet reveals debt to be 11% of the company's capital (with equity being the remaining amount). Approximately merely 23.61% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
SMP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 35.88% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SMP, try VSTO, FRGI, SIRI, BWA, and LOCO.
NEW YORK, Sept. 16, 2020 /PRNewswire/ -- Standard Motor Products, Inc. (SMP) announces the winners of its SMP 'Women in Auto Care' Scholarship. The inaugural competition has presented two female students with $5,000 each. Savannah Miller, of Prince Frederick, MD and Eoin Dockter, of…
NEW YORK, Sept. 10, 2020 /PRNewswire/ -- Standard Motor Products, Inc. (SMP) announces the addition of 245 new part numbers to its Standard® and Intermotor® lines. The release spans 51 product categories and expands coverage for import and domestic applications through the 2020 model year…
NEW YORK, Aug. 10, 2020 /PRNewswire/ -- Standard Motor Products, Inc. (SMP) announces the release of its new Blue Streak® High Temperature Connector Blower Motor Resistor (BMR) Kits. Responding to the strain that today's complex automotive heating and cooling systems put on the blower…