Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Automobile Components 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 Automobile Components 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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3 Undervalued Automobile Components Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Automobile Components industry for Wednesday, November 19, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Automobile Components industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| Fox Factory Holding Corp. | FOXF | 0.41 | na | 19.5 | (0.3%) | 0.63 | 7.0 | B |
| Lear Corporation | LEA | 0.24 | 12.6 | 8.0 | 8.0% | 1.05 | 9.7 | A |
| Magna International Inc. | MGA | 0.32 | 13.1 | 5.2 | 6.0% | 1.07 | 9.0 | A |
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.
Fox Factory Holding Corp.’s Value Grade
Value Grade:
| Metric | Score | FOXF | Industry Median |
| Price/Sales | 16 | 0.41 | 0.68 |
| Price/Earnings | na | na | 17.1 |
| EV/EBITDA | 74 | 19.5 | 9.4 |
| Shareholder Yield | 51 | (0.3%) | (0.3%) |
| Price/Book Value | 12 | 0.63 | 1.56 |
| Price/Free Cash Flow | 15 | 7.0 | 14.1 |
Fox Factory Holding Corp. designs, engineers, manufactures, and markets performance-defining products and system worldwide. The company offers powered vehicle products for off-road vehicles and trucks, side-by-sides, on-road vehicles with and without off-road capabilities, ATVs, snowmobiles, specialty vehicles and applications, and motorcycles; aftermarket truck suspension component products; suspension systems; and motorcycle shocks, forks, cushioning, and hydraulic components under the Marzocchi brand name. It also provides lift kits and components with shock products and aftermarket accessory packages for trucks; suspension tuning services, as well as wheels, off-road tires and accessories; shock products, superchargers, interior accessories, tires, lighting, and body enhancements; and mid-end and high-end front fork and rear suspension products. In addition, the company offers mountain and gravel bike wheels, and other performance cycling components, including cranks, chainrings, pedals, bars, stems, and seat posts under the Race Face and Easton Cycling brand names, as well as baseball and softball products comprising metal bats, wood bats, apparel and accessories, batting gloves, fielding gloves, and bags and protective equipment under the Marucci brand. The company serves aftermarket applications products under the BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4x4 Posi-Lok, Ridetech, Fox Factory Vehicles, Black Widow, Rocky Ridge, Outside Van, and Custom Wheel House brands; upfitting products under the Black Widow, Rocky Ridge, Badlander, Black Ops, Harley-Davidson, and Shelby American brand names; and mountain bikes, e-bikes, and gravel bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands. Fox Factory Holding Corp. was incorporated in 2007 and is based in Duluth, Georgia.
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.
Fox Factory Holding Corp. has a Value Score of 77, which is considered to be undervalued.
When you look at Fox Factory Holding Corp.’s price-to-sales ratio at 0.41 compared to the industry median at 0.68, this company has a lower price relative to revenue compared to its peers. This could make Fox Factory Holding Corp.’s stock more attractive for value investors.
Now, let’s assess Fox Factory Holding Corp.’s EV/EBITDA ratio, also known as enterprise multiple. At 19.5, when compared to the industry median of 9.4, 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. Fox Factory Holding Corp.’s shareholder yield is lower than its industry median ratio of (0.25%). 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. Fox Factory Holding Corp.’s price-to-book ratio is lower than its industry median ratio of 1.56. This could make Fox Factory Holding Corp. more attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at Fox Factory Holding Corp.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Fox Factory Holding Corp.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.05. This could make Fox Factory Holding Corp. more attractive because the lower P/FCF ratio indicates that Fox Factory Holding Corp. 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.
Lear Corporation’s Value Grade
Value Grade:
| Metric | Score | LEA | Industry Median |
| Price/Sales | 10 | 0.24 | 0.68 |
| Price/Earnings | 30 | 12.6 | 17.1 |
| EV/EBITDA | 24 | 8.0 | 9.4 |
| Shareholder Yield | 8 | 8.0% | (0.3%) |
| Price/Book Value | 28 | 1.05 | 1.56 |
| Price/Free Cash Flow | 24 | 9.7 | 14.1 |
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.
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.
Lear Corporation has a Value Score of 95, which is considered to be undervalued.
Lear Corporation’s price-earnings ratio is 12.6 compared to the industry median at 17.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Lear Corporation more attractive for value investors.
Lear Corporation’s price-to-book ratio is higher than its peers. This could make Lear Corporation less attractive for value investors when compared to the industry median at 1.56.
You can read more about Lear Corporation’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.
Magna International Inc.’s Value Grade
Value Grade:
| Metric | Score | MGA | Industry Median |
| Price/Sales | 13 | 0.32 | 0.68 |
| Price/Earnings | 32 | 13.1 | 17.1 |
| EV/EBITDA | 10 | 5.2 | 9.4 |
| Shareholder Yield | 13 | 6.0% | (0.3%) |
| Price/Book Value | 29 | 1.07 | 1.56 |
| Price/Free Cash Flow | 22 | 9.0 | 14.1 |
Magna International Inc. manufactures and supplies vehicle engineering, contract, and automotive space. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The company offers battery enclosures, battery trays, fully assembled body-in-white modules, and chassis systems, such as suspension links and arms, twist axle, carbon fiber subframe, and frame assemblies; cameras, thermal sensing, radar, interior sensing systems, domain controllers, and modules for chassis control, glow plug control, powertrain control, and mechatronic control. It also provides active aerodynamics; lighting, liftgate modules, front integration panels, roof systems and modules, exterior design, thin wall, welding technologies, front end carriers or grille opening reinforcement, door panels, and hoods; latching systems, power closures, door and mechatronic control modules, hinges and wireforming, and handles; interior and exterior mirrors, actuators, and overhead consoles; structural, foam and trim, sustainable, and electronics seating; and greenhouse technologies, trim and exterior ornamentation, and running boards. In addition, the company offers eDrive systems and eBeam; hybrid and ICE Powertrain; E-motor core stack, gears and shafts, planetary carriers and differentials, and inverter covers and oil pans; battery thermal and structural components, and clutch housings and modules; truck fuel tank systems, pipes and components, and energy storage systems. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada.
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.
Magna International Inc. has a Value Score of 95, which is considered to be undervalued.
Magna International Inc.’s price-earnings ratio is 13.1 compared to the industry median at 17.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Magna International Inc. more attractive for value investors.
Magna International Inc.’s price-to-book ratio is higher than its peers. This could make Magna International Inc. less attractive for value investors when compared to the industry median at 1.56.
You can read more about Magna International 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.
Other Automobile Components 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 Automobile Components stocks as well as other industrys.
Choosing Which of the 3 Best Automobile Components 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.
- Fox Factory Holding Corp. stock has a Value Grade of B.
- Lear Corporation stock has a Value Grade of A.
- Magna International Inc. stock has a Value Grade of A.
Now that you have a bit more background about each of the 3 undervalued stocks in the Automobile Components 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 Automobile Components Stocks
Want to learn more about Automobile Components 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.
- 3 Undervalued Automobile Components Stocks for Wednesday, November 19
- Which Is a Better Investment, Autoliv, Inc. or Mobileye Global Inc. Stock?
- Which Is a Better Investment, BorgWarner Inc. or Mobileye Global Inc. Stock?
- Which Is a Better Investment, Dana Incorporated or Mobileye Global Inc. Stock?
AAII Disclaimer
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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