GENUINE PARTS CO (GPC)
US3724601055 - Common Stock
Overall GPC gets a fundamental rating of 5 out of 10. We evaluated GPC against 15 industry peers in the Distributors industry. While GPC belongs to the best of the industry regarding profitability, there are concerns on its financial health. GPC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GPC was profitable.
In the past year GPC had a positive cash flow from operations.
Of the past 5 years GPC 4 years were profitable.
In the past 5 years GPC always reported a positive cash flow from operatings.
1.2 Ratios
GPC has a better Return On Assets (5.37%) than 64.29% of its industry peers.
The Return On Equity of GPC (23.16%) is better than 71.43% of its industry peers.
GPC has a Return On Invested Capital of 10.92%. This is in the better half of the industry: GPC outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GPC is significantly below the industry average of 21.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 23.16% | ||
| ROIC | 10.92% |
ROA(3y)6.92%
ROA(5y)4.96%
ROE(3y)28.96%
ROE(5y)20.57%
ROIC(3y)12.69%
ROIC(5y)11.4%
1.3 Margins
GPC has a Profit Margin of 4.67%. This is in the better half of the industry: GPC outperforms 64.29% of its industry peers.
GPC's Profit Margin has improved in the last couple of years.
The Operating Margin of GPC (6.92%) is better than 64.29% of its industry peers.
In the last couple of years the Operating Margin of GPC has grown nicely.
Looking at the Gross Margin, with a value of 36.42%, GPC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Gross Margin of GPC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.92% | ||
| PM (TTM) | 4.67% | ||
| GM | 36.42% |
OM growth 3Y8.82%
OM growth 5Y4.23%
PM growth 3YN/A
PM growth 5Y3.45%
GM growth 3Y1.64%
GM growth 5Y1.83%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GPC is creating some value.
Compared to 1 year ago, GPC has less shares outstanding
The number of shares outstanding for GPC has been reduced compared to 5 years ago.
Compared to 1 year ago, GPC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.50 indicates that GPC is not a great score, but indicates only limited risk for bankruptcy at the moment.
GPC's Altman-Z score of 2.50 is on the low side compared to the rest of the industry. GPC is outperformed by 64.29% of its industry peers.
GPC has a debt to FCF ratio of 5.12. This is a neutral value as GPC would need 5.12 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.12, GPC is in line with its industry, outperforming 42.86% of the companies in the same industry.
GPC has a Debt/Equity ratio of 0.81. This is a neutral value indicating GPC is somewhat dependend on debt financing.
GPC has a Debt to Equity ratio of 0.81. This is in the lower half of the industry: GPC underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.12 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.89
WACC12.28%
2.3 Liquidity
A Current Ratio of 1.17 indicates that GPC should not have too much problems paying its short term obligations.
GPC has a Current ratio of 1.17. This is in the lower half of the industry: GPC underperforms 78.57% of its industry peers.
A Quick Ratio of 0.57 indicates that GPC may have some problems paying its short term obligations.
With a Quick ratio value of 0.57, GPC is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
GPC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.51%.
The Earnings Per Share has been growing by 10.40% on average over the past years. This is quite good.
Looking at the last year, GPC shows a small growth in Revenue. The Revenue has grown by 1.19% in the last year.
Measured over the past years, GPC shows a small growth in Revenue. The Revenue has been growing by 6.53% on average per year.
EPS 1Y (TTM)-3.51%
EPS 3Y20.07%
EPS 5Y10.4%
EPS Q2Q%-24.5%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y11.77%
Revenue growth 5Y6.53%
Sales Q2Q%2.5%
3.2 Future
The Earnings Per Share is expected to grow by 3.17% on average over the next years.
Based on estimates for the next years, GPC will show a small growth in Revenue. The Revenue will grow by 2.80% on average per year.
EPS Next Y-12.22%
EPS Next 2Y-4.23%
EPS Next 3Y-0.34%
EPS Next 5Y3.17%
Revenue Next Year1.09%
Revenue Next 2Y2.26%
Revenue Next 3Y2.91%
Revenue Next 5Y2.8%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.34 indicates a correct valuation of GPC.
Compared to the rest of the industry, the Price/Earnings ratio of GPC indicates a somewhat cheap valuation: GPC is cheaper than 64.29% of the companies listed in the same industry.
GPC is valuated cheaply when we compare the Price/Earnings ratio to 27.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.71 indicates a correct valuation of GPC.
78.57% of the companies in the same industry are more expensive than GPC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GPC to the average of the S&P500 Index (23.73), we can say GPC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 13.71 |
4.2 Price Multiples
GPC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, GPC is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.11 | ||
| EV/EBITDA | 9.91 |
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)1.28
EPS Next 2Y-4.23%
EPS Next 3Y-0.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.45%, 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 2.67. GPC pays more dividend than 100.00% of the companies in the same industry.
GPC's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
The dividend of GPC has a limited annual growth rate of 5.74%.
GPC has paid a dividend for at least 10 years, which is 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 Years33
Div Non Decr Years33
5.3 Sustainability
GPC pays out 50.07% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GPC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.07%
EPS Next 2Y-4.23%
EPS Next 3Y-0.34%
GENUINE PARTS CO
NYSE:GPC (1/6/2025, 4:37:30 PM)
After market: 117.37 0 (0%)117.37
+0.51 (+0.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners82.03%
Inst Owner Change0%
Ins Owners0.31%
Ins Owner Change0.17%
Market Cap16.32B
Analysts71.76
Price Target132.5 (12.89%)
Short Float %2.38%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Dividend Growth(5Y)5.74%
DP50.07%
Div Incr Years33
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.88%
Min EPS beat(2)-23.04%
Max EPS beat(2)-6.72%
EPS beat(4)2
Avg EPS beat(4)-6.54%
Min EPS beat(4)-23.04%
Max EPS beat(4)1.93%
EPS beat(8)6
Avg EPS beat(8)-1.03%
EPS beat(12)10
Avg EPS beat(12)2.29%
EPS beat(16)14
Avg EPS beat(16)5.9%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-2.11%
Max Revenue beat(4)-0.48%
Revenue beat(8)2
Avg Revenue beat(8)-0.97%
Revenue beat(12)6
Avg Revenue beat(12)0.57%
Revenue beat(16)9
Avg Revenue beat(16)1.15%
PT rev (1m)0.15%
PT rev (3m)-15.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 13.71 | ||
| P/S | 0.7 | ||
| P/FCF | 18.11 | ||
| P/OCF | 11.26 | ||
| P/B | 3.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.91 |
EPS(TTM)8.8
EY7.5%
EPS(NY)8.56
Fwd EY7.29%
FCF(TTM)6.48
FCFY5.52%
OCF(TTM)10.42
OCFY8.88%
SpS167.59
BVpS33.78
TBVpS-1.82
PEG (NY)N/A
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 23.16% | ||
| ROCE | 14.48% | ||
| ROIC | 10.92% | ||
| ROICexc | 12.09% | ||
| ROICexgc | 23.8% | ||
| OM | 6.92% | ||
| PM (TTM) | 4.67% | ||
| GM | 36.42% | ||
| FCFM | 3.87% |
ROA(3y)6.92%
ROA(5y)4.96%
ROE(3y)28.96%
ROE(5y)20.57%
ROIC(3y)12.69%
ROIC(5y)11.4%
ROICexc(3y)13.97%
ROICexc(5y)12.53%
ROICexgc(3y)28.36%
ROICexgc(5y)25.38%
ROCE(3y)16.84%
ROCE(5y)15.13%
ROICexcg growth 3Y7.8%
ROICexcg growth 5Y1.69%
ROICexc growth 3Y9.28%
ROICexc growth 5Y3.78%
OM growth 3Y8.82%
OM growth 5Y4.23%
PM growth 3YN/A
PM growth 5Y3.45%
GM growth 3Y1.64%
GM growth 5Y1.83%
F-Score6
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.12 | ||
| Debt/EBITDA | 1.91 | ||
| Cap/Depr | 142.63% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.58% | ||
| Profit Quality | 82.83% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 2.5 |
F-Score6
WACC12.28%
ROIC/WACC0.89
Cap/Depr(3y)111.78%
Cap/Depr(5y)99.92%
Cap/Sales(3y)1.72%
Cap/Sales(5y)1.54%
Profit Quality(3y)91.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.51%
EPS 3Y20.07%
EPS 5Y10.4%
EPS Q2Q%-24.5%
EPS Next Y-12.22%
EPS Next 2Y-4.23%
EPS Next 3Y-0.34%
EPS Next 5Y3.17%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y11.77%
Revenue growth 5Y6.53%
Sales Q2Q%2.5%
Revenue Next Year1.09%
Revenue Next 2Y2.26%
Revenue Next 3Y2.91%
Revenue Next 5Y2.8%
EBIT growth 1Y-3.79%
EBIT growth 3Y21.63%
EBIT growth 5Y11.04%
EBIT Next Year12.72%
EBIT Next 3Y8.39%
EBIT Next 5Y6.05%
FCF growth 1Y-19.75%
FCF growth 3Y-20.92%
FCF growth 5Y0.09%
OCF growth 1Y-3.03%
OCF growth 3Y-10.75%
OCF growth 5Y4.62%