PRTS

CarParts.com Inc

Consumer, TMT


Presented:08/25/2021
Price:$17.57
Cap:$0.92B
Current Price:$0.80
Cap:$0.05B

Presented

Date08/25/2021
Price$17.57
Market Cap$0.92B
Ent Value$1.09B
P/E RatioN/A
Book Value$1.89
Div Yield0%
Shares O/S52.22M
Ave Daily Vol945,255
Short Int18.36%

Current

Price$0.80
Market Cap$0.05B
CarParts.com, Inc. operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. Its products include Collision Parts, Engine Parts, Performance Parts and Accessories. The firm also sells auto parts to collision repair shops, markets Kool-Vue products to auto parts wholesale distributor, and aftermarket catalytic converters under the Evan Fischer brand. Its flagship Websites include www.carparts.com, www.jcwhitney.com, www.autopartswarehouse.com and www.usautoparts.com. The company was founded by Sol Khazani and Mehran Nia in 1995 and is headquartered in Carson, CA.

Publicly traded companies mentioned herein: AutoZone Inc (AZO), CarParts.com Inc (PRTS), Genuine Parts Co (GPC), O’Reilly Automotive Inc (ORLY)

Highlights

The presenter is long shares of CarParts.com Inc (PRTS), a ~$1B leader in the e-commerce automotive aftermarket industry. PRTS operates in a large market (~$300B TAM) with LSD% e-commerce penetration, selling similar aftermarket parts as players such as O’Reilly Auto Parts, NAPA Auto Parts, and AutoZone. A new management team put in place in early 2019 has transformed PRTS’s business, which appears poised for continued growth in a large and growing market, and is being managed to hit an inflection point in early 2022. PRTS’s stock currently trades at $17.50 per share, and he applies a 2x multiple to his 2023 revenue estimate, or ~6x gross profit, to reach a $32 price target (~80% upside). Alternatively, running PRTS’s guidance through a DCF model, applying a low-20x EV/FCF terminal multiple discounted at 10%, results in $40 per share.

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