Genuine Parts Company (GPC) AI Stock Analysis

• Market Cap: $17.46B
• Dividend Yield: 3.33%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.58
• Revenue Growth: 3.26%
• EPS Growth: -25.41%
• Country: US
• Employees: 63,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.98
• Shares Outstanding: 139,110,500
• 10 Day Avg. Volume: 1,234,478
• 30 Day Avg. Volume: 1,136,297
• PEG Ratio: -0.58
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 23.77
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 2.84
• Enterprise Value/Ebitda: 15.12
• 1Y Price Target: $146.50
• Price Target Upside: 16.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 7.63
• Revenue Forecast (FY): $24.31B

• Rating: 69 Neutral
• Price Target: $143.00 ▲(13.95% Upside)

Genuine Parts Company shows resilience with steady revenue growth and efficient cost management, but faces challenges in profitability and cash flow stability. The earnings call provided a mixed sentiment with solid sales growth but highlighted market challenges. The stock's valuation is moderate with an attractive dividend yield, and technical indicators suggest a neutral trend.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

International Expansion

International expansion enhances market reach and diversifies revenue streams, reducing reliance on domestic markets.

Gross Margin Expansion

Improved gross margins reflect efficient cost management and pricing strategies, bolstering profitability over the long term.

Negative Factors

Increased Leverage

Higher leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth.

Cash Flow Challenges

Reduced cash flow limits the company's ability to fund operations and growth initiatives, posing a risk to financial stability.

Profitability Pressure

Declining profit margins suggest challenges in maintaining profitability, which could affect long-term financial health.

Genuine Parts Company Business Overview & Revenue Model

Company Description

Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials. It operates through Automotive Parts Group and Industrial Parts Group segments. The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment, and heavy duty equipment; and accessory and supply items used by various automotive aftermarket customers, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns, and individuals. It also distributes industrial replacement parts and related supplies, such as bearings, mechanical and electrical power transmission products, industrial automation and robotics, hoses, hydraulic and pneumatic components, industrial and safety supplies, and material handling products for original equipment manufacturer, as well as maintenance, repair, and operation customers in equipment and machinery, food and beverage, forest product, primary metal, pulp and paper, mining, automotive, oil and gas, petrochemical, pharmaceutical, power generation, alternative energy, governments, transportation, ports, and other industries. In addition, the company provides various services and repairs comprising gearbox and fluid power and process pump assembly and repair, hydraulic drive shaft repair, electrical panel assembly and repair, hose and gasket manufacture and assembly, and other value-added services. It operates in the United States, Canada, France, the United Kingdom, Ireland, Germany, Poland, the Netherlands, Belgium, Australia, New Zealand, Mexico, Indonesia, and Singapore. The company was incorporated in 1928 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Genuine Parts Company generates revenue through multiple streams, primarily by selling automotive parts and industrial components to repair shops, manufacturers, and retailers. The company's largest revenue segment comes from its automotive division, which supplies a vast range of parts to both professional and DIY customers. Additionally, GPC earns income through its industrial and office products segments, which include a variety of maintenance, repair, and operational supplies. The company benefits from strategic partnerships with numerous leading manufacturers, allowing it to distribute high-demand products. Furthermore, GPC's extensive distribution network and logistics capabilities enable efficient delivery, enhancing customer satisfaction and repeat business, which are crucial for sustaining its revenue growth.

Genuine Parts Company Financial Statement Overview

Summary

Genuine Parts Company shows steady revenue growth and efficient cost management, but faces challenges in maintaining profitability and cash flow stability. The balance sheet remains stable, though leverage has increased.

Income Statement

Genuine Parts Company shows a consistent revenue growth trend, with a TTM revenue growth rate of 1.22%. The gross profit margin has slightly improved to 37.03% in TTM, indicating efficient cost management. However, the net profit margin has decreased to 3.36% from 3.85% in the previous year, reflecting potential challenges in maintaining profitability. EBIT and EBITDA margins have also slightly declined, suggesting pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 1.34 in TTM, indicating a moderate level of leverage. Return on equity has decreased to 17.69% from 20.84% in the previous year, showing a decline in profitability relative to shareholder equity. The equity ratio remains stable, reflecting a balanced capital structure. Overall, the balance sheet shows stability but with increased leverage risk.

Cash Flow

Free cash flow has significantly decreased by 46.92% in TTM, indicating potential liquidity challenges. The operating cash flow to net income ratio is low at 0.07, suggesting limited cash generation from operations relative to net income. The free cash flow to net income ratio has also declined, reflecting reduced cash conversion efficiency. These factors highlight potential risks in cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.06B	23.49B	23.09B	22.10B	18.87B	16.54B
Gross Profit	8.91B	8.52B	8.29B	7.74B	6.63B	5.65B
EBITDA	1.67B	1.68B	2.16B	1.99B	1.55B	743.26M
Net Income	808.50M	904.08M	1.32B	1.18B	898.79M	-29.10M
Balance Sheet
Total Assets	20.69B	19.28B	17.97B	16.50B	14.35B	13.44B
Cash, Cash Equivalents and Short-Term Investments	431.36M	479.99M	1.10B	653.46M	714.70M	990.17M
Total Debt	6.40B	5.74B	4.89B	4.16B	3.20B	3.47B
Total Liabilities	15.89B	14.93B	13.55B	12.69B	10.85B	10.22B
Stockholders Equity	4.79B	4.34B	4.40B	3.79B	3.49B	3.20B
Cash Flow
Free Cash Flow	133.52M	683.91M	922.93M	1.13B	992.15M	1.87B
Operating Cash Flow	665.72M	1.25B	1.44B	1.47B	1.26B	2.02B
Investing Cash Flow	-750.28M	-1.51B	-705.79M	-1.68B	-506.16M	171.64M
Financing Cash Flow	-552.48M	-333.94M	-292.16M	205.10M	-989.53M	-1.51B

Genuine Parts Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 125.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPC, the sentiment is Negative. The current price of 125.49 is below the 20-day moving average (MA) of 128.50, below the 50-day MA of 127.91, and below the 200-day MA of 125.82, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 9.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GPC.

Genuine Parts Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSCO	73 Outperform	$27.29B	24.93	45.46%	1.80%	4.26%	0.73%
GPC	69 Neutral	$17.46B	21.62	17.05%	3.33%	3.26%	-25.41%
MUSA	68 Neutral	$7.69B	17.30	68.48%	0.53%	-6.08%	-2.40%
ORLY	66 Neutral	$78.00B	32.01	―	―	6.19%	6.98%
AZO	63 Neutral	$57.26B	24.10	―	―	3.81%	-4.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AAP	48 Neutral	$2.47B	-6.51	-23.85%	2.53%	-19.41%	-957.94%

Genuine Parts Company Corporate Events

Genuine Parts Declares Quarterly Dividend of $1.03

On November 17, 2025, Genuine Parts Company announced that its Board of Directors declared a regular quarterly cash dividend of $1.03 per share on the company’s common stock, payable on January 5, 2026, to shareholders of record on December 5, 2025. This announcement underscores the company’s commitment to providing consistent returns to its shareholders and may positively impact its market positioning by reinforcing investor confidence.