GENUINE PARTS CO (GPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPC - US3724601055 - Common Stock
124.03 USD
-0.39 (-0.31%)
124.03 USD
0 (0%)
Overall GPC gets a fundamental rating of 5 out of 10. We evaluated GPC against 22 industry peers in the Distributors industry. While GPC has a great profitability rating, there are quite some 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
In the past year GPC was profitable.
GPC had a positive operating cash flow in the past year.
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 3.91%, GPC is in the better half of the industry, outperforming 63.64% of the companies in the same 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 has a Return On Invested Capital of 8.91%. This is in the better half of the industry: GPC outperforms 68.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
GPC has a better Profit Margin (3.36%) than 68.18% of its industry peers.
In the last couple of years the Profit Margin of GPC has grown nicely.
The Operating Margin of GPC (5.94%) is better than 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.
GPC's Gross Margin of 37.03% is amongst the best of the industry. GPC outperforms 81.82% 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
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.
GPC has a worse debt/assets ratio than last year.
2.2 Solvency
GPC has an Altman-Z score of 2.49. 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 2.49 is in line compared to the rest of the industry. GPC outperforms 45.45% of its industry peers.
The Debt to FCF ratio of GPC is 35.64, which is on the high side as it means it would take GPC, 35.64 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 35.64, GPC is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.97 indicates that 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 | 2.49 |
ROIC/WACC0.97
WACC9.17%
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 68.18% of the companies in the same industry.
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.
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
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.
GPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.58% yearly.
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
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 16.67, GPC is valued correctly.
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.
GPC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.77.
The Price/Forward Earnings ratio is 14.60, which indicates a correct valuation of GPC.
Based on the Price/Forward Earnings ratio, GPC is valued cheaper than 81.82% of the companies in the same industry.
GPC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 14.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPC is valued a bit cheaper than 68.18% of the companies in the same industry.
GPC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 129.22 | ||
| EV/EBITDA | 10.86 |
4.3 Compensation for Growth
The decent profitability rating of GPC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.25
EPS Next 2Y2.11%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.28%, GPC has a reasonable but not impressive dividend return.
GPC's Dividend Yield is rather good when compared to the industry average which is at 1.00. GPC pays more dividend than 86.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, GPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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 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.
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%
124.03
-0.39 (-0.31%)
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 Change4.72%
Market Cap17.25B
Revenue(TTM)24.06B
Net Income(TTM)808.50M
Analysts71.76
Price Target149.03 (20.16%)
Short Float %3.38%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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)0%
PT rev (3m)6.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 14.6 | ||
| P/S | 0.72 | ||
| P/FCF | 129.22 | ||
| P/OCF | 25.92 | ||
| P/B | 3.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.86 |
EPS(TTM)7.44
EY6%
EPS(NY)8.5
Fwd EY6.85%
FCF(TTM)0.96
FCFY0.77%
OCF(TTM)4.79
OCFY3.86%
SpS172.96
BVpS34.41
TBVpS-1.41
PEG (NY)N/A
PEG (5Y)2.25
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 | 2.49 |
F-Score6
WACC9.17%
ROIC/WACC0.97
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 5 / 10 to GPC.
What is the valuation status for GPC stock?
ChartMill assigns a valuation rating of 5 / 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 7 / 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 16.67 and the Price/Book (PB) ratio is 3.6.
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%.