GENUINE PARTS CO (GPC) Stock Fundamental Analysis
NYSE:GPC - New York Stock Exchange, Inc. - US3724601055 - Common Stock - Currency: USD
Taking everything into account, GPC scores 4 out of 10 in our fundamental rating. GPC was compared to 15 industry peers in the Distributors industry. There are concerns on the financial health of GPC while its profitability can be described as average. GPC has a valuation in line with the averages, but on the other hand it scores bad on growth. GPC also has an excellent dividend rating.
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.
GPC had positive earnings in 4 of the past 5 years.
GPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GPC has a better Return On Assets (4.69%) than 64.29% of its industry peers.
With a decent Return On Equity value of 20.84%, GPC is doing good in the industry, outperforming 78.57% of the companies in the same industry.
GPC has a better Return On Invested Capital (10.22%) than 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GPC is significantly below the industry average of 18.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 20.84% | ||
| ROIC | 10.22% |
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
The Profit Margin of GPC (3.85%) is better than 64.29% of its industry peers.
In the last couple of years the Profit Margin of GPC has grown nicely.
GPC has a better Operating Margin (6.14%) than 64.29% of its industry peers.
GPC's Operating Margin has been stable in the last couple of years.
GPC has a better Gross Margin (36.29%) than 71.43% of its industry peers.
In the last couple of years the Gross Margin of GPC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.14% | ||
| PM (TTM) | 3.85% | ||
| GM | 36.29% |
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.
GPC has less shares outstanding than it did 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 2.62 indicates that GPC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.62, GPC is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
The Debt to FCF ratio of GPC is 6.26, which is on the high side as it means it would take GPC, 6.26 years of fcf income to pay off all of its debts.
GPC has a Debt to FCF ratio (6.26) which is in line with its industry peers.
A Debt/Equity ratio of 0.86 indicates that GPC is somewhat dependend on debt financing.
The Debt to Equity ratio of GPC (0.86) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.88
WACC11.56%
2.3 Liquidity
A Current Ratio of 1.16 indicates that GPC should not have too much problems paying its short term obligations.
GPC has a worse Current ratio (1.16) than 78.57% of its industry peers.
A Quick Ratio of 0.51 indicates that GPC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.51, GPC is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| 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 -12.65%.
GPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.41% yearly.
Looking at the last year, GPC shows a small growth in Revenue. The Revenue has grown by 1.71% in the last year.
Measured over the past years, GPC shows a small growth in Revenue. The Revenue has been growing by 6.03% on average per year.
EPS 1Y (TTM)-12.65%
EPS 3Y5.66%
EPS 5Y7.41%
EPS Q2Q%-28.76%
Revenue 1Y (TTM)1.71%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%3.3%
3.2 Future
GPC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.38% yearly.
GPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
EPS Next Y0.71%
EPS Next 2Y5.56%
EPS Next 3Y7.17%
EPS Next 5Y7.38%
Revenue Next Year3.16%
Revenue Next 2Y3.71%
Revenue Next 3Y3.1%
Revenue Next 5Y3.32%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 14.99, which indicates a correct valuation of GPC.
GPC's Price/Earnings ratio is a bit cheaper when compared to the industry. GPC is cheaper than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.30, GPC is valued rather cheaply.
The Price/Forward Earnings ratio is 14.88, which indicates a correct valuation of GPC.
GPC's Price/Forward 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/Forward Earnings ratio of GPC to the average of the S&P500 Index (23.06), we can say GPC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 14.88 |
4.2 Price Multiples
GPC's Enterprise Value to EBITDA is on the same level as the industry average.
64.29% of the companies in the same industry are cheaper than GPC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.83 | ||
| EV/EBITDA | 11.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GPC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of GPC may justify a higher PE ratio.
PEG (NY)21.05
PEG (5Y)2.02
EPS Next 2Y5.56%
EPS Next 3Y7.17%
5. Dividend
5.1 Amount
GPC has a Yearly Dividend Yield of 3.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.63, GPC pays a better dividend. On top of this GPC pays more dividend than 100.00% of the companies listed in the same industry.
GPC's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.74%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
61.38% of the earnings are spent on dividend by GPC. This is not a sustainable payout ratio.
GPC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.38%
EPS Next 2Y5.56%
EPS Next 3Y7.17%
NYSE:GPC (2/21/2025, 1:42:36 PM)
122.145
-1.12 (-0.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners82.03%
Inst Owner Change1.9%
Ins Owners0.31%
Ins Owner Change0.17%
Market Cap16.98B
Analysts70
Price Target133.96 (9.67%)
Short Float %2.73%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
Yearly Dividend3.99
Dividend Growth(5Y)5.74%
DP61.38%
Div Incr Years33
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.06%
Min EPS beat(2)-23.04%
Max EPS beat(2)2.92%
EPS beat(4)2
Avg EPS beat(4)-6.29%
Min EPS beat(4)-23.04%
Max EPS beat(4)2.92%
EPS beat(8)6
Avg EPS beat(8)-1.59%
EPS beat(12)10
Avg EPS beat(12)1.64%
EPS beat(16)14
Avg EPS beat(16)5.35%
Revenue beat(2)0
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)-0.03%
Revenue beat(4)0
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-2.11%
Max Revenue beat(4)-0.03%
Revenue beat(8)1
Avg Revenue beat(8)-1.28%
Revenue beat(12)5
Avg Revenue beat(12)0.42%
Revenue beat(16)9
Avg Revenue beat(16)1.29%
PT rev (1m)1.76%
PT rev (3m)-14.83%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-0.46%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 14.88 | ||
| P/S | 0.72 | ||
| P/FCF | 24.83 | ||
| P/OCF | 13.57 | ||
| P/B | 3.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.32 |
EPS(TTM)8.15
EY6.67%
EPS(NY)8.21
Fwd EY6.72%
FCF(TTM)4.92
FCFY4.03%
OCF(TTM)9
OCFY7.37%
SpS168.92
BVpS31.2
TBVpS-2.58
PEG (NY)21.05
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 20.84% | ||
| ROCE | 13.41% | ||
| ROIC | 10.22% | ||
| ROICexc | 10.7% | ||
| ROICexgc | 19.7% | ||
| OM | 6.14% | ||
| PM (TTM) | 3.85% | ||
| GM | 36.29% | ||
| FCFM | 2.91% |
ROA(3y)6.4%
ROA(5y)5.05%
ROE(3y)27.32%
ROE(5y)21.36%
ROIC(3y)12.44%
ROIC(5y)11.71%
ROICexc(3y)13.5%
ROICexc(5y)12.87%
ROICexgc(3y)27.33%
ROICexgc(5y)25.86%
ROCE(3y)16.32%
ROCE(5y)15.36%
ROICexcg growth 3Y-6.02%
ROICexcg 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 Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 6.26 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 139.06% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 11.54 | ||
| Cash Conversion | 67.61% | ||
| Profit Quality | 75.65% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 2.62 |
F-Score6
WACC11.56%
ROIC/WACC0.88
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)-12.65%
EPS 3Y5.66%
EPS 5Y7.41%
EPS Q2Q%-28.76%
EPS Next Y0.71%
EPS Next 2Y5.56%
EPS Next 3Y7.17%
EPS Next 5Y7.38%
Revenue 1Y (TTM)1.71%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%3.3%
Revenue Next Year3.16%
Revenue Next 2Y3.71%
Revenue Next 3Y3.1%
Revenue Next 5Y3.32%
EBIT growth 1Y-17.42%
EBIT growth 3Y7.45%
EBIT growth 5Y7.37%
EBIT Next Year35.8%
EBIT Next 3Y13.82%
EBIT Next 5Y10.06%
FCF growth 1Y-25.9%
FCF growth 3Y-11.66%
FCF growth 5Y2.18%
OCF growth 1Y-12.84%
OCF growth 3Y-0.19%
OCF growth 5Y7%