GENUINE PARTS CO (GPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPC - US3724601055 - Common Stock
137.63 USD
+0.79 (+0.58%)
137.64 USD
+0.01 (+0.01%)
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 has a valuation in line with the averages, 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
- GPC has a better Return On Assets (3.91%) than 61.90% of its industry peers.
- GPC has a Return On Equity of 16.89%. This is in the better half of the industry: GPC outperforms 76.19% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.91%, GPC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for GPC 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
- The Profit Margin of GPC (3.36%) is better than 66.67% of its industry peers.
- In the last couple of years the Profit Margin of GPC has grown nicely.
- GPC has a better Operating Margin (5.94%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of GPC has remained more or less at the same level.
- GPC's Gross Margin of 37.03% is amongst the best of the industry. GPC outperforms 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.
- Compared to 1 year ago, GPC has less shares outstanding
- GPC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, GPC has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.56 indicates that GPC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of GPC (2.56) is comparable to the rest of the industry.
- 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 47.62% 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.
- With a Debt to Equity ratio value of 0.97, GPC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 35.64 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.98
WACC9.07%
2.3 Liquidity
- A Current Ratio of 1.14 indicates that GPC should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.14, GPC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- A Quick Ratio of 0.51 indicates that GPC may have some problems paying its short term obligations.
- GPC's Quick ratio of 0.51 is on the low side compared to the rest of the industry. GPC is outperformed by 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- The earnings per share for GPC have decreased strongly by -15.45% in the last year.
- 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
- The Earnings Per Share is expected to grow by 5.83% 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 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
- GPC is valuated rather expensively with a Price/Earnings ratio of 18.50.
- Based on the Price/Earnings ratio, GPC is valued a bit cheaper than 66.67% of the companies in the same industry.
- GPC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 16.20, the valuation of GPC can be described as correct.
- Based on the Price/Forward Earnings ratio, GPC is valued a bit cheaper than 76.19% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. GPC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 16.2 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as GPC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 143.39 | ||
| EV/EBITDA | 11.77 |
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)2.5
EPS Next 2Y2.11%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.01%, GPC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.93, GPC pays a better dividend. On top of this GPC pays more dividend than 85.71% of the companies listed in the same industry.
- GPC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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 Years34
Div Non Decr Years34
5.3 Sustainability
- GPC pays out 69.77% of its income as dividend. This is not a sustainable payout ratio.
- GPC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP69.77%
EPS Next 2Y2.11%
EPS Next 3Y4.29%
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 4 / 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%.