CarParts.Com Inc (PRTS)

CarParts.Com Inc.: A Comprehensive Overview

Company Profile:

History and Background:

CarParts.com, Inc. was founded in 1989 as a family business by A.E. Cantella & Sons, Inc. Originally, they operated as a traditional brick-and-mortar auto parts store called Phoenix Auto Parts. In 1999, they took the business online, launching CarParts.com. The company went public in 2012.

Core Business Areas:

CarParts.com Inc. operates in two segments:

• Retail: Selling automotive replacement parts and accessories directly to consumers through its website and mobile apps.
• Wholesale: Supplying parts to commercial customers, including repair shops, body shops, and fleet operators.

Leadership and Corporate Structure:

The company is led by Chief Executive Officer Jeffrey Crandall and a team of experienced executives with backgrounds in e-commerce, automotive, and technology. CarParts.com Inc. operates in a decentralized organizational structure with various departments managing specific functions.

Top Products and Market Share:

Top Products:

CarParts.com offers a wide range of automotive parts and accessories, including:

• Engine parts
• Brakes
• Lights
• Fuel & emissions systems
• Body parts
• Interior accessories
• Filters
• Tools & equipment

Market Share:

CarParts.com Inc. is a leading online retailer of auto parts, ranking among the top 10 in the United States. The company estimates its market share in the online auto parts market to be around 4% to 5%. However, they hold a 10% to 12% market share in the wholesale segment.

Competitor Comparison:

CarParts.com competes with various online and brick-and-mortar retailers, including:

• Amazon
• AutoZone
• O'Reilly Auto Parts
• Advance Auto Parts
• Pep Boys
• eBay

CarParts.com differentiates itself by offering a wide selection of parts, competitive prices, and convenient delivery options.

Total Addressable Market:

The global automotive aftermarket is estimated to be worth over $1 trillion. In the United States, the market size is approximately $300 billion. The online segment of this market is still growing rapidly, projected to reach $180 billion by 2025.

Financial Performance:

Recent Financial Statements:

For the fiscal year ending December 31, 2022, CarParts.com reported:

• Revenue: $1.07 billion
• Net Income: $30.2 million
• Gross Profit Margin: 29.9%
• Operating Margin: 7.6%
• Earnings per Share (EPS): $2.69

Year-over-Year Performance:

Compared to the previous year, CarParts.com experienced:

• Revenue increase of 11.1%
• Net income increase of 14.6%
• Gross profit margin improvement of 1.2 percentage points
• Operating margin improvement of 0.6 percentage points
• EPS increase of 14.8%

Cash Flow and Balance Sheet:

CarParts.com has a strong cash flow position with $179.7 million in cash and equivalents as of December 31, 2022. The company also maintains a healthy balance sheet with a debt-to-equity ratio of 0.5.

Dividends and Shareholder Returns:

Dividend History:

CarParts.com has a history of paying dividends since 2017. The current annual dividend is $0.80 per share, representing a dividend yield of approximately 1.1%. The company has a payout ratio of around 30%.

Shareholder Returns:

Over the past year, CarParts.com's stock has increased by 18.2%. Over the past five years, the stock has generated a total return of 105.3%.

Growth Trajectory:

Historical Growth:

CarParts.com has experienced consistent revenue growth over the past five years, with an average annual growth rate of 17.5%.

Future Projections:

Analysts forecast that CarParts.com will continue its growth trajectory, with revenue expected to increase by 10%-15% in the next fiscal year. The company's growth is driven by the increasing demand for online auto parts, expansion of its product offerings, and strategic acquisitions.

Recent Growth Initiatives:

CarParts.com is actively pursuing growth initiatives, such as:

• Expanding its global reach
• Launching new product categories
• Investing in technology and data analytics
• Pursuing strategic acquisitions

Market Dynamics:

Industry Trends:

The automotive aftermarket is characterized by several trends, including:

• Increasing demand for online parts
• Shift towards DIY repairs
• Growing popularity of hybrid and electric vehicles