PRTS:NASDAQCarParts.com, Inc. Analysis
Data as of 2026-07-19 - not real-time
$5.30
Latest Price
8/10Risk
Risk Level: High
Executive Summary
CarParts.com, Inc. is trading well below its book value (price $5.3 vs book $7.4) and exhibits an extremely low price‑to‑sales multiple, suggesting a surface‑level undervaluation. Technical indicators reinforce a bearish outlook: the 20‑day SMA sits beneath both the 50‑day and 200‑day SMAs, the MACD line is under its signal, and RSI is at 31, indicating oversold conditions but no clear reversal. Volume is trending down and 30‑day volatility is soaring above 59%, while a beta above 1.3 points to heightened market sensitivity. Fundamentally, the company is struggling – revenue is down 10.5%, margins are negative, cash flow is deeply in the red, and debt levels are high relative to equity. Analyst targets near $10.5 imply a near‑100% upside, yet the combination of weak earnings, negative cash generation, and a sizeable max drawdown of ~66% makes the upside highly speculative. Investors should weigh the attractive valuation against the pronounced operational and liquidity risks before deciding.
Market Outlook
Short Term
< 1 yearCautious
Model confidence: 8/10
Key Factors
- Bearish technicals (SMA20 < SMA50/200, MACD below signal, RSI 31)
- Negative earnings, operating cash flow and free cash flow
- Decreasing volume and extreme short‑term volatility
Medium Term
1–3 yearsNeutral
Model confidence: 5/10
Key Factors
- Analyst price target suggests significant upside potential
- Value‑oriented valuation metrics (low P/S, price below book)
- Uncertainty around turnaround and earnings recovery
Long Term
> 3 yearsNeutral
Model confidence: 4/10
Key Factors
- Long‑term demand for aftermarket auto parts remains steady
- Potential to improve margins through scale and brand integration
- High debt load and ongoing cash‑flow deficits pose structural risk
Key Metrics & Analysis
Financial Health
Revenue Growth-10.50%
Profit Margin-6.97%
P/E Ratio-2.0
ROE-56.05%
ROA-10.14%
Debt/Equity88.63
P/B Ratio0.7
Op. Cash Flow$-32320000
Free Cash Flow$-21799624
Technical Analysis
TrendBearish
RSI31.3
Support$5.25
Resistance$6.75
MA 20$6.06
MA 50$6.41
MA 200$6.46
MACDBearish
VolumeDecreasing
Fear & Greed Index87.91
Valuation
Target Price$10.50
Upside/Downside98.11%
GradeUndervalued
TypeValue
Risk Assessment
Beta1.33
Volatility59.11%
Sector RiskMedium
Reg. RiskLow
Geo RiskLow
Currency RiskLow
Liquidity RiskHigh
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.