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 19 industry peers in the Distributors industry. GPC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year GPC had a positive cash flow from operations.
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
With a Return On Assets value of 4.29%, GPC perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
GPC has a Return On Equity of 19.09%. This is in the better half of the industry: GPC outperforms 73.68% of its industry peers.
GPC has a better Return On Invested Capital (9.06%) than 68.42% 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 18.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 19.09% | ||
| ROIC | 9.06% |
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 has a Profit Margin (3.60%) which is in line with its industry peers.
GPC's Profit Margin has improved in the last couple of years.
The Operating Margin of GPC (5.93%) is better than 68.42% of its industry peers.
GPC's Operating Margin has been stable in the last couple of years.
The Gross Margin of GPC (36.58%) is better than 73.68% of its industry peers.
In the last couple of years the Gross Margin of GPC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.93% | ||
| PM (TTM) | 3.6% | ||
| GM | 36.58% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GPC is 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.
The debt/assets ratio for GPC is higher compared to a year ago.
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.
The Altman-Z score of GPC (2.53) is worse than 68.42% of its industry peers.
GPC has a debt to FCF ratio of 14.31. This is a negative value and a sign of low solvency as GPC would need 14.31 years to pay back of all of its debts.
GPC has a Debt to FCF ratio (14.31) which is in line with its industry peers.
A Debt/Equity ratio of 1.03 is on the high side and indicates that GPC has dependencies on debt financing.
GPC has a worse Debt to Equity ratio (1.03) than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.15
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.15 indicates that GPC should not have too much problems paying its short term obligations.
GPC has a worse Current ratio (1.15) than 78.95% of its industry peers.
A Quick Ratio of 0.52 indicates that GPC may have some problems paying its short term obligations.
GPC has a Quick ratio of 0.52. This is in the lower half of the industry: GPC underperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
GPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.38%.
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 1.99% in the past year.
The Revenue has been growing slightly by 6.03% on average over the past years.
EPS 1Y (TTM)-18.38%
EPS 3Y5.66%
EPS 5Y7.41%
EPS Q2Q%-21.17%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%1.43%
3.2 Future
The Earnings Per Share is expected to grow by 5.41% 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 3.29% on average per year.
EPS Next Y-4.29%
EPS Next 2Y2.87%
EPS Next 3Y4.63%
EPS Next 5Y5.41%
Revenue Next Year2.76%
Revenue Next 2Y3.17%
Revenue Next 3Y3.64%
Revenue Next 5Y3.29%
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
With a Price/Earnings ratio of 15.80, GPC is valued correctly.
73.68% of the companies in the same industry are more expensive than GPC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.15. GPC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.07, which indicates a correct valuation of GPC.
Based on the Price/Forward Earnings ratio, GPC is valued a bit cheaper than 78.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GPC to the average of the S&P500 Index (21.60), we can say GPC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 14.07 |
4.2 Price Multiples
GPC's Enterprise Value to EBITDA ratio is in line with the industry average.
GPC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.51 | ||
| EV/EBITDA | 10.97 |
4.3 Compensation for Growth
The decent profitability rating of GPC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.13
EPS Next 2Y2.87%
EPS Next 3Y4.63%
5. Dividend
5.1 Amount
GPC has a Yearly Dividend Yield of 3.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.65, GPC pays a better dividend. On top of this GPC pays more dividend than 94.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, GPC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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 65.52% of its income as dividend. This is not a sustainable payout ratio.
GPC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP65.52%
EPS Next 2Y2.87%
EPS Next 3Y4.63%
121.31
+0.83 (+0.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners87.68%
Inst Owner Change5.11%
Ins Owners0.28%
Ins Owner Change0.18%
Market Cap16.84B
Analysts71.76
Price Target133.82 (10.31%)
Short Float %2.77%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Yearly Dividend3.99
Dividend Growth(5Y)5.74%
DP65.52%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.09%
Min EPS beat(2)2.92%
Max EPS beat(2)3.26%
EPS beat(4)2
Avg EPS beat(4)-5.9%
Min EPS beat(4)-23.04%
Max EPS beat(4)3.26%
EPS beat(8)6
Avg EPS beat(8)-1.76%
EPS beat(12)10
Avg EPS beat(12)1.08%
EPS beat(16)14
Avg EPS beat(16)3.7%
Revenue beat(2)0
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.36%
Max Revenue beat(2)-0.03%
Revenue beat(4)0
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-2.11%
Max Revenue beat(4)-0.03%
Revenue beat(8)0
Avg Revenue beat(8)-1.4%
Revenue beat(12)4
Avg Revenue beat(12)0.09%
Revenue beat(16)8
Avg Revenue beat(16)1.09%
PT rev (1m)0.49%
PT rev (3m)0.2%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-3.65%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-2.19%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 14.07 | ||
| P/S | 0.71 | ||
| P/FCF | 52.51 | ||
| P/OCF | 18.87 | ||
| P/B | 3.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.97 |
EPS(TTM)7.68
EY6.33%
EPS(NY)8.62
Fwd EY7.11%
FCF(TTM)2.31
FCFY1.9%
OCF(TTM)6.43
OCFY5.3%
SpS169.82
BVpS32.06
TBVpS-2.71
PEG (NY)N/A
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 19.09% | ||
| ROCE | 12.78% | ||
| ROIC | 9.06% | ||
| ROICexc | 9.4% | ||
| ROICexgc | 16.38% | ||
| OM | 5.93% | ||
| PM (TTM) | 3.6% | ||
| GM | 36.58% | ||
| FCFM | 1.36% |
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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 14.32 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 132.04% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.77% | ||
| Profit Quality | 37.74% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 2.53 |
F-Score6
WACC7.91%
ROIC/WACC1.15
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)-18.38%
EPS 3Y5.66%
EPS 5Y7.41%
EPS Q2Q%-21.17%
EPS Next Y-4.29%
EPS Next 2Y2.87%
EPS Next 3Y4.63%
EPS Next 5Y5.41%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%1.43%
Revenue Next Year2.76%
Revenue Next 2Y3.17%
Revenue Next 3Y3.64%
Revenue Next 5Y3.29%
EBIT growth 1Y-19.77%
EBIT growth 3Y7.45%
EBIT growth 5Y7.37%
EBIT Next Year31.94%
EBIT Next 3Y14.61%
EBIT Next 5Y9.47%
FCF growth 1Y-65%
FCF growth 3Y-11.66%
FCF growth 5Y2.18%
OCF growth 1Y-29.52%
OCF growth 3Y-0.19%
OCF growth 5Y7%