Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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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5 Undervalued Automobile Components Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Automobile Components industry for Friday, February 20, 2026. 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.

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.

Dauch Corporation’s Value Grade

Value Grade:

Dauch Corporation, together with its subsidiaries, designs, engineers, and manufactures driveline and metal forming technologies that supports electric, hybrid, and internal combustion vehicles. It operates through two segments, Driveline and Metal Forming segments. The Driveline segment offers front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment provides range of products, such as engine, transmission, driveline, and safety-critical components for traditional internal combustion engine and electric vehicle architectures, including light vehicles, commercial vehicles, and off-highway vehicles, as well as products for industrial markets. It operates in North America, Asia, Europe, and South America. Dauch Corporation was formerly known as American Axle & Manufacturing Holdings, Inc. and changed its name to Dauch Corporation in January 2026. The company was founded in 1994 and is headquartered in Detroit, 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.

Dauch Corporation has a Value Score of 81, which is considered to be undervalued.

When you look at Dauch Corporation’s price-to-sales ratio at 0.14 compared to the industry median at 0.84, this company has a lower price relative to revenue compared to its peers. This could make Dauch Corporation’s stock more attractive for value investors.

Now, let’s assess Dauch Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 12.9, when compared to the industry median of 9.7, 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. Dauch Corporation’s shareholder yield is lower than its industry median ratio of (0.20%). 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. Dauch Corporation’s price-to-book ratio is lower than its industry median ratio of 1.80. This could make Dauch Corporation more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Dauch Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Dauch Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.25. This could make Dauch Corporation more attractive because the lower P/FCF ratio indicates that Dauch Corporation 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.

Gentex Corporation’s Value Grade

Value Grade:

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, China, Germany, Japan, Mexico, the Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers; and HomeLink modules for the automotive industry. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, visual signaling alarms, photoelectric smoke alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling appliances, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Further, the company is involved in the research and development of nanofiber chemical sensing products; and market and sale of eSight smart glasses to consumers with visual impairment or eye conditions, as well as of identity authentication and access control products that utilizes biometrics technology. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, 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.

Gentex Corporation has a Value Score of 70, which is considered to be undervalued.

Gentex Corporation’s price-earnings ratio is 14.1 compared to the industry median at 20.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Gentex Corporation more attractive for value investors.

Gentex Corporation’s price-to-book ratio is lower than its peers. This could make Gentex Corporation more attractive for value investors when compared to the industry median at 1.80.

You can read more about Gentex 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.

Motorcar Parts of America, Inc.’s Value Grade

Value Grade:

Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts in the United States. It operates through three segments: Hard Parts, Test Solutions and Diagnostic Equipment, and Heavy Duty. The company offers light duty rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders; and turbochargers. It also provides test solutions and diagnostic equipment that include applications for combustion engine vehicles, such as bench-top testers for alternators and starters; equipment for the pre- and post-production of electric vehicles; and software emulation of power systems applications for the electrification of various forms of transportation. In addition, the company offers heavy duty parts, including non-discretionary automotive aftermarket replacement hard parts for heavy-duty truck, industrial, marine, and agricultural applications. It sells its products to automotive retail chain stores and warehouse distributors in North America, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs. The company provides its products under the Private Label, Quality-Built, Pure Energy, D&V; Electronics, Dixie Electric, and DelStar brands. Motorcar Parts of America, Inc. was incorporated in 1968 and is headquartered in Torrance, California.

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.

Motorcar Parts of America, Inc. has a Value Score of 83, which is considered to be undervalued.

Motorcar Parts of America, Inc.’s price-earnings ratio is 112.6 compared to the industry median at 20.5. This means that it has a higher price relative to its earnings compared to its peers. This makes Motorcar Parts of America, Inc. less attractive for value investors.

Motorcar Parts of America, Inc.’s price-to-book ratio is higher than its peers. This could make Motorcar Parts of America, Inc. less attractive for value investors when compared to the industry median at 1.80.

You can read more about Motorcar Parts of America, 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.

Strattec Security Corporation’s Value Grade

Value Grade:

Strattec Security Corporation designs, develops, manufactures, and markets automotive security, access control, and user interface controls products in North America and internationally. The company offers mechanical and electronically enhanced locks and keys, fobs, passive entry passive start systems, digital key, phone as a key systems, steering column and instrument panel ignition lock housings, latches, power sliding door systems, power tailgate and lift gate systems, power deck lid systems, door handles, steering wheel switches and controller, E-shifters, paddle switches, and related products. It also provides service and aftermarket support services for its products. It markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive customers. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.

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.

Strattec Security Corporation has a Value Score of 86, which is considered to be undervalued.

Strattec Security Corporation’s price-earnings ratio is 13.7 compared to the industry median at 20.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Strattec Security Corporation more attractive for value investors.

Strattec Security Corporation’s price-to-book ratio is higher than its peers. This could make Strattec Security Corporation less attractive for value investors when compared to the industry median at 1.80.

You can read more about Strattec Security 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.

Gentherm Incorporated’s Value Grade

Value Grade:

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. It operates in two segments, Automotive and Medical. The company offers climate comfort systems, including seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; pneumatic lumbar and massage comfort solutions comprising lumbar support, side bolster adjustment, multi-contour seats and massage systems; and other climate and comfort systems, including neck and shoulder conditioners, and climate control systems for door panels and armrests. It also provides automotive cable technology, such as ready-made individual cables and ready-to-install cable networks used to connect components to power sources; battery performance solutions consist of cell connecting devices and battery cable technologies used for various types of batteries and thermal management products; valve systems for brake and engine systems, and fuel management; and electronic and software systems include electronic control units for climate and comfort systems, and electronic control units for memory seat modules and other devices. In addition, the company offers patient temperature management systems under the Blanketrol/Kool-Kit/Maxi-Therm Lite, WarmAir/FilteredFlo, Astopad, Electri-Cool/Micro-Temp, Astotherm/Astoflo, and Hemotherm brands for hyper-hypothermia therapy in intensive care, normothermia in surgical procedures, and additional warming/cooling therapies. It serves light vehicle original equipment manufacturers and tier 1s, and medical industry. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. The company was incorporated in 1991 and is headquartered in Northville, 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.

Gentherm Incorporated has a Value Score of 69, which is considered to be undervalued.

Gentherm Incorporated’s price-earnings ratio is 31.6 compared to the industry median at 20.5. This means that it has a higher price relative to its earnings compared to its peers. This makes Gentherm Incorporated less attractive for value investors.

Gentherm Incorporated’s price-to-book ratio is higher than its peers. This could make Gentherm Incorporated less attractive for value investors when compared to the industry median at 1.80.

You can read more about Gentherm Incorporated’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 5 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.

• Dauch Corporation stock has a Value Grade of A.
• Gentex Corporation stock has a Value Grade of B.
• Motorcar Parts of America, Inc. stock has a Value Grade of A.
• Strattec Security Corporation stock has a Value Grade of A.
• Gentherm Incorporated stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Automobile Components Stocks for Friday, February 20
• 7 Undervalued Automobile Components Stocks for Thursday, February 19
• Why Garrett Motion Inc.’s (GTX) Stock Is Down 7.82%
• Why Visteon Corporation’s (VC) Stock Is Down 12.12%

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