10Y annualized return is
positive but below market average
at 2.7% per year
GPC has met or exceeded earnings expectations in
the majority of
recent quarters (8/10)
Reasonable Price-to-Earnings Ratio
Low Price-to-Sales Ratio
Strong Return on Equity
Healthy Gross Profit Margin
Good Interest Coverage Ratio
Adequate Current Ratio
🏆 Strong Market Position
💰 Financial Discipline
🚀 Strategic Investments and M&A
📈 Anticipated Market Recovery
High Price-to-Free-Cash-Flow Ratio
Elevated Price-to-Book Ratio
Low Net Profit Margin
Subpar Operating Profit Margin
High Debt-to-Equity Ratio
Low Quick Ratio
⚠️ Weak Market Conditions
📉 Earnings Pressure
Overall, GPC exhibits strong business quality through its market leadership and financial discipline, but faces challenges from weak market conditions and inflation. Future prospects appear positive with strategic investments and anticipated market recovery, though earnings pressures could pose risks in the short term.
Analysis Date: February 18, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Genuine Parts Company (GPC) is a company that sells parts and supplies for cars, trucks, and machinery. They provide replacement parts for various vehicles, including hybrid and electric cars, as well as equipment used in farms and factories. GPC also offers services like repairing and assembling parts to help keep vehicles and machines running smoothly. They operate in many countries, making it easier for repair shops and businesses to find the parts they need.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
Genuine Parts Company (NYSE:GPC ) Q1 2025 Earnings Conference Call April 22, 2025 8:30 AM ET Company Participants Tim Walsh - Senior Director, Investo...
GPC reports better-than-expected first-quarter results and reaffirms 2025 guidance.
While the top- and bottom-line numbers for Genuine Parts (GPC) give a sense of how the business performed in the quarter ended March 2025, it could be...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$250.67
Current Market Price: $116.75
IV/P Ratio: 2.15x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
53.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for GPC
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (17.94)
P/B ratio ≤ 1.5 (3.74)
Current ratio ≥ 2.0 (1.16x)
Long-term debt < Net current assets (3.92x)
Margin of safety (53.0%)
GPC does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
18.85%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
35.87%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
3.85%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
A return on equity (ROE) of 20.12% demonstrates effective management and a strong ability to generate income from shareholder equity.
A gross profit margin of 35.87% indicates the company effectively manages its costs relative to sales, enhancing profitability.
A net profit margin of 3.85% suggests that while the company is generating revenue, it may struggle with overall profitability compared to peers.
An operating profit margin of 5.54% is relatively low, indicating potential inefficiencies in operations that could impact future profitability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.32x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.16x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
An interest coverage ratio of 13.43 indicates that the company can easily cover its interest obligations, reflecting strong financial stability.
A current ratio of 1.16 suggests that the company has sufficient short-term assets to cover its short-term liabilities, indicative of solid liquidity.
A debt-to-equity ratio of 1.32 indicates that the company relies significantly on debt financing, which could pose risks during downturns.
A quick ratio of 0.51 suggests potential liquidity issues since it indicates the company may struggle to meet short-term obligations without selling inventory.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Revenue
Genuine Parts Company (GPC) maintains a leadership position in a fragmented market, with less than 10% market share in its industrial segment, indicating significant growth potential. The company also reported operational excellence with a consistent focus on customer service, as evidenced by a 81% engagement rate among employees.
GPC demonstrated strong financial discipline with a solid cash flow generation of $1.3 billion and returning nearly 60% of operating cash flow to shareholders. The company also achieved a 3% increase in dividends, marking 69 consecutive years of dividend increases.
The company's end markets did not perform as expected, particularly in the industrial segment, which faced reduced customer demand and comparable sales decline. The overall economic environment remains challenging with inflationary pressures impacting profitability.
GPC is actively pursuing bolt-on acquisitions to enhance capabilities and geographic coverage, having acquired over 100 companies in 2024. This positions them well for future growth as they leverage technology and data to improve operations and customer experience.
Despite current challenges, GPC expects gradual improvement in market conditions, particularly in industrial and automotive segments, supported by favorable long-term industry fundamentals like increasing vehicle age and miles driven.
The company anticipates earnings to be down 15% to 20% in the first half of 2025 due to weak market conditions, high interest rates, and inflation, which could hinder growth if not managed effectively.
Insider trading data shows purchase and sale activities by company executives and board members.
Insider trading patterns can provide insights into how company executives and board members view the stock's future prospects.
Insiders are selling significantly more than buying (ratio: 0.55x)
Total Bought
Total value of insider purchases in recent quarters
$3733
Higher values indicate stronger insider confidence
Total Sold
Total value of insider sales in recent quarters
$6755
Lower values relative to buying indicate possible undervaluation
Active Insiders
Number of insiders trading in recent quarters
4
Moderate insider activity
Recent Trend
Change in insider trading pattern
GPC: No trend data available