GENUINE PARTS CO (GPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPC - US3724601055 - Common Stock
131.91 USD
+0.36 (+0.27%)
131.91 USD
0 (0%)
Taking everything into account, GPC scores 4 out of 10 in our fundamental rating. GPC was compared to 22 industry peers in the Distributors industry. While GPC is still in line with the averages on profitability rating, 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.
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
The Return On Assets of GPC (3.91%) is comparable to the rest of the industry.
GPC has a Return On Equity of 16.89%. This is in the better half of the industry: GPC outperforms 77.27% of its industry peers.
GPC's Return On Invested Capital of 8.91% is fine compared to the rest of the industry. GPC outperforms 63.64% 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 14.96%.
| 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
The Profit Margin of GPC (3.36%) is better than 63.64% of its industry peers.
In the last couple of years the Profit Margin of GPC has grown nicely.
With a decent Operating Margin value of 5.94%, GPC is doing good in the industry, outperforming 68.18% of the companies in the same industry.
GPC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 37.03%, GPC belongs to the top of the industry, outperforming 81.82% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GPC is still creating some value.
The number of shares outstanding for GPC has been reduced compared to 1 year ago.
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 2.53 indicates that GPC is not a great score, but indicates only limited risk for bankruptcy at the moment.
GPC has a Altman-Z score (2.53) 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.
GPC's Debt to FCF ratio of 35.64 is in line compared to the rest of the industry. GPC outperforms 50.00% of its industry peers.
GPC has a Debt/Equity ratio of 0.97. This is a neutral value indicating GPC is somewhat dependend on debt financing.
The Debt to Equity ratio of GPC (0.97) is worse than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 35.64 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.96
WACC9.28%
2.3 Liquidity
GPC has a Current Ratio of 1.14. This is a normal value and indicates that GPC is financially healthy and should not expect problems in meeting 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 68.18% of its industry peers.
A Quick Ratio of 0.51 indicates that GPC may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, GPC is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| 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%.
Measured over the past 5 years, GPC shows a small growth in Earnings Per Share. The EPS has been growing by 7.41% on average per year.
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
Based on estimates for the next years, GPC will show a small growth in Earnings Per Share. The EPS will grow by 5.83% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 17.73, which indicates a rather expensive current valuation of GPC.
GPC's Price/Earnings ratio is a bit cheaper when compared to the industry. GPC is cheaper than 68.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.55, GPC is valued a bit cheaper.
GPC is valuated correctly with a Price/Forward Earnings ratio of 15.52.
81.82% of the companies in the same industry are more expensive than GPC, based on the Price/Forward Earnings ratio.
GPC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPC is valued a bit cheaper than 63.64% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GPC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 137.43 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
The decent profitability rating of GPC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.39
EPS Next 2Y2.11%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
GPC has a Yearly Dividend Yield of 3.08%.
GPC's Dividend Yield is rather good when compared to the industry average which is at 0.96. GPC pays more dividend than 86.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, GPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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 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%
131.91
+0.36 (+0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners88.61%
Inst Owner Change-0.91%
Ins Owners0.3%
Ins Owner Change4.81%
Market Cap18.35B
Revenue(TTM)24.06B
Net Income(TTM)808.50M
Analysts71.76
Price Target149.03 (12.98%)
Short Float %3.14%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend3.99
Dividend Growth(5Y)5.74%
DP69.77%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)1.05%
PT rev (3m)6.23%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 15.52 | ||
| P/S | 0.76 | ||
| P/FCF | 137.43 | ||
| P/OCF | 27.56 | ||
| P/B | 3.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.38 |
EPS(TTM)7.44
EY5.64%
EPS(NY)8.5
Fwd EY6.44%
FCF(TTM)0.96
FCFY0.73%
OCF(TTM)4.79
OCFY3.63%
SpS172.96
BVpS34.41
TBVpS-1.41
PEG (NY)N/A
PEG (5Y)2.39
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 | 2.53 |
F-Score6
WACC9.28%
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 4 / 10 to GPC.
What is the valuation status for GPC stock?
ChartMill assigns a valuation rating of 4 / 10 to GENUINE PARTS CO (GPC). This can be considered as Fairly Valued.
What is the profitability of GPC stock?
GENUINE PARTS CO (GPC) has a profitability rating of 6 / 10.
What are the PE and PB ratios of GENUINE PARTS CO (GPC) stock?
The Price/Earnings (PE) ratio for GENUINE PARTS CO (GPC) is 17.73 and the Price/Book (PB) ratio is 3.83.
Can you provide the dividend sustainability for GPC stock?
The dividend rating of GENUINE PARTS CO (GPC) is 7 / 10 and the dividend payout ratio is 69.77%.