Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Auto, Truck & Motorcycle Parts industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Auto, Truck & Motorcycle Parts Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Auto, Truck & Motorcycle Parts Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Auto, Truck & Motorcycle Parts industry for Wednesday, July 10, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Auto, Truck & Motorcycle Parts industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Autoliv Inc’s Value Grade

Value Grade:

Autoliv, Inc. is a developer, manufacturer, and supplier of safety systems to the automotive industry with a range of product offerings, primarily passive safety systems. Passive safety systems include modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies and battery cut-off switches. The Company also develops and manufactures mobility safety solutions, such as pedestrian protection, battery cut-off switches, connected safety services and safety solutions for riders of powered two wheelers. The Company has one operating segment, which includes Autoliv’s airbag and seatbelt products and components. Its subsidiaries include Autoliv AB and Autoliv ASP, Inc. The Company operates its business in geographical regions, such as Europe, the Americas, China, Japan, and the Rest of Asia (ROA). The Company has approximately 62 production facilities in 25 countries.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Autoliv Inc has a Value Score of 61, which is considered to be undervalued.

When you look at Autoliv Inc’s price-to-sales ratio at 0.83 compared to the industry median at 0.53, this company has a higher price relative to revenue compared to its peers. This could make Autoliv Inc’s stock less attractive for value investors.

Autoliv Inc’s price-earnings ratio is 16.56 compared to the industry median at 14.60. This means it has a higher share price relative to earnings compared to its peers. This could make Autoliv Inc less attractive for value investors.

Now, let’s assess Autoliv Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 7.3, when compared to the industry median of 6.8, the company may be considered overvalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Autoliv Inc’s shareholder yield is higher than its industry median ratio of 0.00%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Autoliv Inc’s price-to-book ratio is higher than its industry median ratio of 1.26. This could make Autoliv Inc less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Autoliv Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Autoliv Inc’s price-to-free-cash-flow ratio is higher than its industry median ratio of 13.88. This could make Autoliv Inc less attractive because the higher P/FCF ratio indicates that Autoliv Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Commercial Vehicle Group, Inc.’s Value Grade

Value Grade:

Commercial Vehicle Group, Inc. is a global provider of systems, assemblies and components to the global commercial vehicle market, the electric vehicle market, and the industrial automation markets. The Company delivers solutions to complex design, engineering, and manufacturing problems. The Company's segments include Vehicle Solutions, Electrical Systems, Aftermarket & Accessories, and Industrial Automation. The Vehicle Solutions segment designs, manufactures and sells commercial vehicle seats and plastic and trim components. The Electrical Systems segment designs, manufactures and sells cable and harness assemblies for both high and low voltage applications, control boxes, dashboard assemblies and design and engineering for these applications. The Aftermarket & Accessories segment designs, manufactures, and sells seats and components, commercial vehicle accessories, and office seats. The Industrial Automation segment designs, manufactures and sells warehouse automation subsystems.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Commercial Vehicle Group, Inc. has a Value Score of 92, which is considered to be undervalued.

Commercial Vehicle Group, Inc.’s price-earnings ratio is 3.6 compared to the industry median at 14.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Commercial Vehicle Group, Inc. more attractive for value investors.

Commercial Vehicle Group, Inc.’s price-to-book ratio is higher than its peers. This could make Commercial Vehicle Group, Inc. less attractive for value investors when compared to the industry median at 1.26.

You can read more about Commercial Vehicle Group, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Holley Inc’s Value Grade

Value Grade:

Holley, Inc. is a designer, marketer, and manufacturer of automotive aftermarket products for car and truck enthusiasts primarily in the United States, Canada and Europe. The Company's products span a number of automotive platforms and are sold across multiple channels. It manufactures a diversified line of performance automotive products, including carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners and automotive performance plumbing products. Its portfolio consists of over 70 brands spanning across over 30 product categories. Its brands include Holley EFI, Holley, MSD, Simpson, Powerteq, Accel and Flowmaster, among others. Its Holley EFI brand focuses on electronic fuel injection technology and showcases its new product development engine. Simpson brand is focused on motorsport safety products including helmets, head and neck restraints, seat belts and fire suits.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Holley Inc has a Value Score of 72, which is considered to be undervalued.

Holley Inc’s price-earnings ratio is 21.4 compared to the industry median at 14.6. This means that it has a higher price relative to its earnings compared to its peers. This makes Holley Inc less attractive for value investors.

Holley Inc’s price-to-book ratio is higher than its peers. This could make Holley Inc less attractive for value investors when compared to the industry median at 1.26.

You can read more about Holley Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Iochpe Maxion SA - ADR’s Value Grade

Value Grade:

Iochpe-Maxion S.A. is engaged in the production of automotive wheels. The Company is a producer of automotive structural components in the Americas, and a producer of railway equipment in Brazil. Its operations are focused on the automotive segment, and divided into the wheels and structural component segments. The Company operates through three divisions: Maxion Wheels, Maxion Structural Components and AmstedMaxion. At Maxion Wheels, the Company produces and sells a range of steel wheels for light and commercial vehicles, and agricultural machinery and aluminum wheels for light vehicles. At Maxion Structural Components, it produces side rails, cross members and full frames for commercial vehicles and structural components for light vehicles. At AmstedMaxion (a joint venture), the Company produces freight cars, railway wheels and castings, as well as industrial castings. The Company's and its subsidiaries' operations are carried out in over 30 units located in Brazil and abroad.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Iochpe Maxion SA - ADR has a Value Score of 97, which is considered to be undervalued.

Iochpe Maxion SA - ADR’s price-earnings ratio is 17.8 compared to the industry median at 14.6. This means that it has a higher price relative to its earnings compared to its peers. This makes Iochpe Maxion SA - ADR less attractive for value investors.

Iochpe Maxion SA - ADR’s price-to-book ratio is higher than its peers. This could make Iochpe Maxion SA - ADR less attractive for value investors when compared to the industry median at 1.26.

You can read more about Iochpe Maxion SA - ADR’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

LCI Industries’s Value Grade

Value Grade:

LCI Industries, through its wholly owned subsidiary, Lippert Components, Inc. (Lippert), supplies, domestically and internationally, a broad array of engineered components for the original equipment manufacturers (OEMs) in the recreation and transportation markets. The Company's segments include OEMs and the Aftermarket. The OEMs segment manufactures and distributes a broad array of engineered components for the OEMs of RVs and adjacent industries, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing. The Aftermarket Segment supplies many of these engineered components to the related aftermarket channels of the recreation and transportation markets, primarily to retail dealers, wholesale distributors, and service centers, as well as direct to retail customers via the Internet. Lippert's products include steel chassis and related components, axles and suspension solutions, and others.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

LCI Industries has a Value Score of 61, which is considered to be undervalued.

LCI Industries’s price-earnings ratio is 26.6 compared to the industry median at 14.6. This means that it has a higher price relative to its earnings compared to its peers. This makes LCI Industries less attractive for value investors.

LCI Industries’s price-to-book ratio is lower than its peers. This could make LCI Industries more attractive for value investors when compared to the industry median at 1.26.

You can read more about LCI Industries’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Mayville Engineering Company Inc’s Value Grade

Value Grade:

Mayville Engineering Company, Inc. is a vertically integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, aluminum extrusion, coating, assembly and aftermarket components. Its customers operate in diverse end markets, such as heavy-and medium-duty commercial vehicles, construction and access equipment, powersports, agriculture, military and other end markets. Its capabilities include metal fabrication, metal stamping, aluminum extrusion and fabrication, tube bending and forming, robotic part forming, robotic welding, resistance welding, five-axis tube and fiber laser cutting and custom coatings, including high heat and chemical agent resistant coating painting, are used in a variety of applications. It serves its customers through 23 strategically located United States facilities, across seven states, with over three million square feet of manufacturing capacity.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Mayville Engineering Company Inc has a Value Score of 62, which is considered to be undervalued.

Mayville Engineering Company Inc’s price-earnings ratio is 39.9 compared to the industry median at 14.6. This means that it has a higher price relative to its earnings compared to its peers. This makes Mayville Engineering Company Inc less attractive for value investors.

Mayville Engineering Company Inc’s price-to-book ratio is lower than its peers. This could make Mayville Engineering Company Inc more attractive for value investors when compared to the industry median at 1.26.

You can read more about Mayville Engineering Company Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Visteon Corp’s Value Grade

Value Grade:

Visteon Corporation is a global automotive technology company serving the mobility industry. The Company's platforms leverage hardware and software solutions that enable the digital, electric, and autonomous evolution of the Company's global automotive customers, including BMW, Ford, Geely, General Motors, Honda, Jaguar/Land Rover, Mahindra, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Renault, Stellantis, Tata, Toyota, and Volkswagen. The Company operates through the Electronics segment, which provides vehicle cockpit electronics products to customers, including digital instrument clusters, domain controllers with integrated advanced driver assistance systems (ADAS) displays, Android-based infotainment systems, and battery management systems. The Company designs and manufactures automotive electronics and connected car solutions, such as instrument clusters, information displays, infotainment, battery management systems, high-voltage power electronics, telematics solutions and others.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Visteon Corp has a Value Score of 74, which is considered to be undervalued.

Visteon Corp’s price-earnings ratio is 5.9 compared to the industry median at 14.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Visteon Corp more attractive for value investors.

Visteon Corp’s price-to-book ratio is lower than its peers. This could make Visteon Corp more attractive for value investors when compared to the industry median at 1.26.

You can read more about Visteon Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Auto, Truck & Motorcycle Parts Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Auto, Truck & Motorcycle Parts stocks as well as other industrys.

Choosing Which of the 7 Best Auto, Truck & Motorcycle Parts Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Autoliv Inc stock has a Value Grade of B.
• Commercial Vehicle Group, Inc. stock has a Value Grade of A.
• Holley Inc stock has a Value Grade of B.
• Iochpe Maxion SA - ADR stock has a Value Grade of A.
• LCI Industries stock has a Value Grade of B.
• Mayville Engineering Company Inc stock has a Value Grade of B.
• Visteon Corp stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Auto, Truck & Motorcycle Parts industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Auto, Truck & Motorcycle Parts Stocks

Want to learn more about Auto, Truck & Motorcycle Parts stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Auto, Truck & Motorcycle Parts Stocks for Wednesday, July 10
• 4 Undervalued Auto, Truck & Motorcycle Parts Stocks for Tuesday, July 09
• Why Fox Factory Holding Corp’s (FOXF) Stock Is Down 5.34%
• 5 Undervalued Auto, Truck & Motorcycle Parts Stocks for Monday, July 08

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