GENUINE PARTS CO (GPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPC - US3724601055 - Common Stock
124 USD
+1.04 (+0.85%)
124 USD
0 (0%)
Taking everything into account, GPC scores 5 out of 10 in our fundamental rating. GPC was compared to 21 industry peers in the Distributors industry. GPC has an excellent profitability rating, but there are concerns on its financial health. GPC is valued correctly, but it does not seem to be growing. Finally GPC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
GPC had positive earnings in the past year.
GPC had a positive operating cash flow in the past year.
GPC had positive earnings in 4 of the past 5 years.
In the past 5 years GPC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.91%, GPC is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
GPC has a better Return On Equity (16.89%) than 76.19% of its industry peers.
GPC has a better Return On Invested Capital (8.91%) than 66.67% of its industry peers.
GPC had an Average Return On Invested Capital over the past 3 years of 12.44%. This is below the industry average of 15.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 16.89% | ||
| ROIC | 8.91% |
ROA(3y)6.4%
ROA(5y)5.05%
ROE(3y)27.32%
ROE(5y)21.36%
ROIC(3y)12.44%
ROIC(5y)11.71%
1.3 Margins
GPC has a better Profit Margin (3.36%) than 66.67% of its industry peers.
GPC's Profit Margin has improved in the last couple of years.
GPC has a better Operating Margin (5.94%) than 66.67% of its industry peers.
GPC's Operating Margin has been stable in the last couple of years.
GPC has a better Gross Margin (37.03%) than 85.71% of its industry peers.
In the last couple of years the Gross Margin of GPC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.94% | ||
| PM (TTM) | 3.36% | ||
| GM | 37.03% |
OM growth 3Y-0.11%
OM growth 5Y1.26%
PM growth 3Y-6.86%
PM growth 5Y1.67%
GM growth 3Y1.07%
GM growth 5Y1.65%
2. Health
2.1 Basic Checks
GPC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GPC has been reduced compared to 1 year ago.
GPC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GPC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.49 indicates that GPC is not a great score, but indicates only limited risk for bankruptcy at the moment.
GPC has a Altman-Z score (2.49) which is in line with its industry peers.
GPC has a debt to FCF ratio of 35.64. This is a negative value and a sign of low solvency as GPC would need 35.64 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 35.64, GPC is in line with its industry, outperforming 47.62% of the companies in the same industry.
A Debt/Equity ratio of 0.97 indicates that GPC is somewhat dependend on debt financing.
GPC has a worse Debt to Equity ratio (0.97) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 35.64 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.96
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.14 indicates that GPC should not have too much problems paying its short term obligations.
GPC's Current ratio of 1.14 is on the low side compared to the rest of the industry. GPC is outperformed by 66.67% of its industry peers.
GPC has a Quick Ratio of 1.14. This is a bad value and indicates that GPC is not financially healthy enough and could expect problems in meeting its short term obligations.
GPC has a Quick ratio of 0.51. This is amonst the worse of the industry: GPC underperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
GPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.45%.
The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
The Revenue has been growing slightly by 3.26% in the past year.
GPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.03% yearly.
EPS 1Y (TTM)-15.45%
EPS 3Y5.66%
EPS 5Y7.41%
EPS Q2Q%5.32%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%4.86%
3.2 Future
GPC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.83% yearly.
Based on estimates for the next years, GPC will show a small growth in Revenue. The Revenue will grow by 3.58% on average per year.
EPS Next Y-5.49%
EPS Next 2Y2.11%
EPS Next 3Y4.29%
EPS Next 5Y5.83%
Revenue Next Year3.79%
Revenue Next 2Y3.71%
Revenue Next 3Y3.98%
Revenue Next 5Y3.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.67 indicates a correct valuation of GPC.
GPC's Price/Earnings ratio is a bit cheaper when compared to the industry. GPC is cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of GPC to the average of the S&P500 Index (26.60), we can say GPC is valued slightly cheaper.
GPC is valuated correctly with a Price/Forward Earnings ratio of 14.59.
Based on the Price/Forward Earnings ratio, GPC is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, GPC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 14.59 |
4.2 Price Multiples
GPC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPC is cheaper than 61.90% of the companies in the same industry.
GPC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 129.19 | ||
| EV/EBITDA | 10.83 |
4.3 Compensation for Growth
GPC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.25
EPS Next 2Y2.11%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.35%, GPC has a reasonable but not impressive dividend return.
GPC's Dividend Yield is rather good when compared to the industry average which is at 1.05. GPC pays more dividend than 85.71% of the companies in the same industry.
GPC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
The dividend of GPC has a limited annual growth rate of 5.74%.
GPC has been paying a dividend for at least 10 years, so it has a reliable track record.
GPC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.74%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
69.77% of the earnings are spent on dividend by GPC. This is not a sustainable payout ratio.
The dividend of GPC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP69.77%
EPS Next 2Y2.11%
EPS Next 3Y4.29%
124
+1.04 (+0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners88.73%
Inst Owner Change0%
Ins Owners0.3%
Ins Owner Change4.72%
Market Cap17.25B
Revenue(TTM)24.06B
Net Income(TTM)808.50M
Analysts71.76
Price Target149.03 (20.19%)
Short Float %3.38%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend3.99
Dividend Growth(5Y)5.74%
DP69.77%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.54%
Min EPS beat(2)-1.6%
Max EPS beat(2)0.53%
EPS beat(4)3
Avg EPS beat(4)1.28%
Min EPS beat(4)-1.6%
Max EPS beat(4)3.26%
EPS beat(8)5
Avg EPS beat(8)-2.63%
EPS beat(12)9
Avg EPS beat(12)-0.26%
EPS beat(16)13
Avg EPS beat(16)2.04%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)1.23%
Revenue beat(4)1
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-0.36%
Max Revenue beat(4)1.23%
Revenue beat(8)1
Avg Revenue beat(8)-0.74%
Revenue beat(12)3
Avg Revenue beat(12)-0.59%
Revenue beat(16)7
Avg Revenue beat(16)0.47%
PT rev (1m)0%
PT rev (3m)2.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 14.59 | ||
| P/S | 0.72 | ||
| P/FCF | 129.19 | ||
| P/OCF | 25.91 | ||
| P/B | 3.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.83 |
EPS(TTM)7.44
EY6%
EPS(NY)8.5
Fwd EY6.85%
FCF(TTM)0.96
FCFY0.77%
OCF(TTM)4.79
OCFY3.86%
SpS172.96
BVpS34.41
TBVpS-1.41
PEG (NY)N/A
PEG (5Y)2.25
Graham Number75.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 16.89% | ||
| ROCE | 12.64% | ||
| ROIC | 8.91% | ||
| ROICexc | 9.24% | ||
| ROICexgc | 16% | ||
| OM | 5.94% | ||
| PM (TTM) | 3.36% | ||
| GM | 37.03% | ||
| FCFM | 0.55% |
ROA(3y)6.4%
ROA(5y)5.05%
ROE(3y)27.32%
ROE(5y)21.36%
ROIC(3y)12.44%
ROIC(5y)11.71%
ROICexc(3y)13.5%
ROICexc(5y)12.87%
ROICexgc(3y)27.33%
ROICexgc(5y)25.86%
ROCE(3y)16.32%
ROCE(5y)15.36%
ROICexgc growth 3Y-6.02%
ROICexgc growth 5Y1.01%
ROICexc growth 3Y-5.21%
ROICexc growth 5Y2.06%
OM growth 3Y-0.11%
OM growth 5Y1.26%
PM growth 3Y-6.86%
PM growth 5Y1.67%
GM growth 3Y1.07%
GM growth 5Y1.65%
F-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 35.64 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 111.32% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34.9% | ||
| Profit Quality | 16.51% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 2.49 |
F-Score6
WACC9.27%
ROIC/WACC0.96
Cap/Depr(3y)127.65%
Cap/Depr(5y)106.14%
Cap/Sales(3y)2.06%
Cap/Sales(5y)1.7%
Profit Quality(3y)80.35%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.45%
EPS 3Y5.66%
EPS 5Y7.41%
EPS Q2Q%5.32%
EPS Next Y-5.49%
EPS Next 2Y2.11%
EPS Next 3Y4.29%
EPS Next 5Y5.83%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%4.86%
Revenue Next Year3.79%
Revenue Next 2Y3.71%
Revenue Next 3Y3.98%
Revenue Next 5Y3.58%
EBIT growth 1Y-11.35%
EBIT growth 3Y7.45%
EBIT growth 5Y7.37%
EBIT Next Year31.68%
EBIT Next 3Y15.16%
EBIT Next 5Y9.82%
FCF growth 1Y-84.46%
FCF growth 3Y-11.66%
FCF growth 5Y2.18%
OCF growth 1Y-48.98%
OCF growth 3Y-0.19%
OCF growth 5Y7%
GENUINE PARTS CO / GPC FAQ
What is the ChartMill fundamental rating of GENUINE PARTS CO (GPC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GPC.
What is the valuation status of GENUINE PARTS CO (GPC) stock?
ChartMill assigns a valuation rating of 5 / 10 to GENUINE PARTS CO (GPC). This can be considered as Fairly Valued.
Can you provide the profitability details for GENUINE PARTS CO?
GENUINE PARTS CO (GPC) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for GPC stock?
The Earnings per Share (EPS) of GENUINE PARTS CO (GPC) is expected to decline by -5.49% in the next year.
How sustainable is the dividend of GENUINE PARTS CO (GPC) stock?
The dividend rating of GENUINE PARTS CO (GPC) is 7 / 10 and the dividend payout ratio is 69.77%.