GENUINE PARTS CO (GPC)
US3724601055 - Common Stock
GPC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 15 industry peers in the Distributors industry. GPC has an excellent profitability rating, but there are concerns on its financial health. GPC has a valuation in line with the averages, but it does not seem to be growing. GPC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
GPC had positive earnings in the past year.
In the past year GPC had a positive cash flow from operations.
GPC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years GPC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.37%, GPC is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
The Return On Equity of GPC (23.16%) is better than 76.92% of its industry peers.
GPC's Return On Invested Capital of 10.92% is fine compared to the rest of the industry. GPC outperforms 76.92% of its industry peers.
GPC had an Average Return On Invested Capital over the past 3 years of 12.69%. This is in line with the industry average of 13.52%.
| 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 61.54% of its industry peers.
In the last couple of years the Profit Margin of GPC has grown nicely.
GPC has a better Operating Margin (6.92%) than 61.54% of its industry peers.
In the last couple of years the Operating Margin of GPC has grown nicely.
GPC's Gross Margin of 36.42% is fine compared to the rest of the industry. GPC outperforms 76.92% of its industry peers.
GPC's Gross Margin has improved in the last couple of years.
| 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
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.
The number of shares outstanding for GPC has been reduced compared to 5 years ago.
GPC has a worse debt/assets ratio than last year.
2.2 Solvency
GPC has an Altman-Z score of 2.53. This is not the best score and indicates that GPC is in the grey zone with still only limited risk for bankruptcy at the moment.
GPC has a Altman-Z score of 2.53. This is in the lower half of the industry: GPC underperforms 69.23% 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.
With a Debt to FCF ratio value of 5.12, GPC perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that GPC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.81, GPC is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.12 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.94
WACC11.65%
2.3 Liquidity
A Current Ratio of 1.17 indicates that GPC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, GPC is doing worse than 84.62% of the companies in the same industry.
GPC has a Quick Ratio of 1.17. 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's Quick ratio of 0.57 is on the low side compared to the rest of the industry. GPC is outperformed by 76.92% of its industry peers.
| 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.
The Revenue has been growing slightly by 1.19% in the past year.
GPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.53% yearly.
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
GPC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.01% yearly.
GPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.37% yearly.
EPS Next Y-12.26%
EPS Next 2Y-4.25%
EPS Next 3Y-0.41%
EPS Next 5Y6.01%
Revenue Next Year1.09%
Revenue Next 2Y2.25%
Revenue Next 3Y2.9%
Revenue Next 5Y3.37%
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
Based on the Price/Earnings ratio of 14.18, the valuation of GPC can be described as correct.
Based on the Price/Earnings ratio, GPC is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GPC to the average of the S&P500 Index (29.20), we can say GPC is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.59, GPC is valued correctly.
69.23% of the companies in the same industry are more expensive than GPC, based on the Price/Forward Earnings ratio.
GPC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 14.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPC is valued a bit cheaper than 61.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GPC is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.26 | ||
| EV/EBITDA | 10.32 |
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)1.36
EPS Next 2Y-4.25%
EPS Next 3Y-0.41%
5. Dividend
5.1 Amount
GPC has a Yearly Dividend Yield of 3.23%.
Compared to an average industry Dividend Yield of 9.28, 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 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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
50.07% of the earnings are spent on dividend by GPC. This is a bit on the high side, but may be sustainable.
The dividend of GPC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP50.07%
EPS Next 2Y-4.25%
EPS Next 3Y-0.41%
GENUINE PARTS CO
NYSE:GPC (11/22/2024, 8:04:00 PM)
After market: 124.74 -0.06 (-0.05%)124.8
+2.11 (+1.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 14.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 23.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.92% | ||
| PM (TTM) | 4.67% | ||
| GM | 36.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-3.51%
EPS 3Y20.07%
EPS 5Y
EPS Q2Q%
EPS Next Y-12.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.19%
Revenue growth 3Y11.77%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y