GENUINE PARTS CO (GPC) Stock Fundamental Analysis
USA - NYSE:GPC - US3724601055 - Common Stock
128.4 USD
-0.75 (-0.58%)
128.2 USD
-0.2 (-0.16%)
Overall GPC gets a fundamental rating of 4 out of 10. We evaluated GPC against 22 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GPC was profitable.
GPC had a positive operating cash flow in the past year.
Of the past 5 years GPC 4 years were profitable.
GPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.91%, GPC is in line with its industry, outperforming 59.09% of the companies in the same industry.
GPC has a Return On Equity of 16.89%. This is amongst the best in the industry. GPC outperforms 81.82% of its industry peers.
GPC has a better Return On Invested Capital (8.91%) than 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GPC is below the industry average of 14.77%.
| 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
GPC's Profit Margin of 3.36% is fine compared to the rest of the industry. GPC outperforms 63.64% of its industry peers.
GPC's Profit Margin has improved in the last couple of years.
GPC's Operating Margin of 5.94% is fine compared to the rest of the industry. GPC outperforms 68.18% of its industry peers.
In the last couple of years the Operating Margin of GPC has remained more or less at the same level.
The Gross Margin of GPC (37.03%) is better than 77.27% of its industry peers.
GPC's Gross Margin has improved in the last couple of years.
| 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.
GPC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GPC has less shares outstanding
GPC has a worse debt/assets ratio than last year.
2.2 Solvency
GPC has an Altman-Z score of 2.51. 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's Altman-Z score of 2.51 is in line compared to the rest of the industry. GPC outperforms 40.91% of 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.
The Debt to FCF ratio of GPC (35.64) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.97 indicates that 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: 68.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 35.64 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.95
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.14 indicates that GPC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.14, GPC is doing worse than 72.73% of the companies in the same industry.
GPC has a Quick Ratio of 1.14. This is a bad value and indicates that GPC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GPC (0.51) is worse than 77.27% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
GPC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.26%.
The Revenue has been growing slightly by 6.03% on average over the past years.
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
GPC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.45% yearly.
Based on estimates for the next years, GPC will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
EPS Next Y-5.01%
EPS Next 2Y2.34%
EPS Next 3Y4.4%
EPS Next 5Y5.45%
Revenue Next Year2.79%
Revenue Next 2Y3.15%
Revenue Next 3Y3.55%
Revenue Next 5Y3.33%
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 17.26, the valuation of GPC can be described as rather expensive.
Based on the Price/Earnings ratio, GPC is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.19. GPC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.04, which indicates a correct valuation of GPC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GPC indicates a rather cheap valuation: GPC is cheaper than 81.82% of the companies listed in the same industry.
GPC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 15.04 |
4.2 Price Multiples
63.64% of the companies in the same industry are more expensive than GPC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 133.75 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
The decent profitability rating of GPC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.33
EPS Next 2Y2.34%
EPS Next 3Y4.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.13%, GPC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.27, GPC pays a better dividend. On top of this GPC pays more dividend than 86.36% of the companies listed 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 | 3.13% |
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
69.77% of the earnings are spent on dividend by GPC. This is not a sustainable payout ratio.
The dividend of GPC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP69.77%
EPS Next 2Y2.34%
EPS Next 3Y4.4%
128.4
-0.75 (-0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners88.59%
Inst Owner Change-0.02%
Ins Owners0.3%
Ins Owner Change5.37%
Market Cap17.86B
Revenue(TTM)24.06B
Net Income(TTM)808.50M
Analysts71.76
Price Target147.48 (14.86%)
Short Float %3.88%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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)3.64%
PT rev (3m)8.65%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 15.04 | ||
| P/S | 0.74 | ||
| P/FCF | 133.75 | ||
| P/OCF | 26.83 | ||
| P/B | 3.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.15 |
EPS(TTM)7.44
EY5.79%
EPS(NY)8.54
Fwd EY6.65%
FCF(TTM)0.96
FCFY0.75%
OCF(TTM)4.79
OCFY3.73%
SpS172.99
BVpS34.41
TBVpS-1.41
PEG (NY)N/A
PEG (5Y)2.33
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 | 2.51 |
F-Score6
WACC9.36%
ROIC/WACC0.95
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-5.01%
EPS Next 2Y2.34%
EPS Next 3Y4.4%
EPS Next 5Y5.45%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%4.86%
Revenue Next Year2.79%
Revenue Next 2Y3.15%
Revenue Next 3Y3.55%
Revenue Next 5Y3.33%
EBIT growth 1Y-11.35%
EBIT growth 3Y7.45%
EBIT growth 5Y7.37%
EBIT Next Year32.65%
EBIT Next 3Y14.72%
EBIT Next 5Y9.5%
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 17.26 and the Price/Book (PB) ratio is 3.73.
Can you provide the dividend sustainability for GPC stock?
The dividend rating of GENUINE PARTS CO (GPC) is 6 / 10 and the dividend payout ratio is 69.77%.