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Genuine Parts Company (GPC)
NYSE:GPC
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Genuine Parts Company (GPC) AI Stock Analysis

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GPC

Genuine Parts Company

(NYSE:GPC)

Rating:66Neutral
Price Target:
$146.00
▲(9.60%Upside)
Genuine Parts Company demonstrates solid financial performance with steady revenue growth and strategic initiatives in place. However, challenges such as declining net profit margins, high valuation relative to peers, and revised earnings guidance due to tariffs and cost pressures weigh on the overall score.
Positive Factors
Market Conditions
Expectations for improvements in both segments benefiting from harsh winter weather and higher same SKU inflation for Auto, and higher production activity for Industrial.
Political Influence
A Republican win could benefit both of GPC’s segments with same SKU inflation for Auto and more on-shoring activity for Industrial.
Negative Factors
Financial Performance
Both end markets haven’t recovered as much as anticipated and, when combined with higher-than-expected cost pressures, earnings have now been reset sharply lower for future years.
Market Share
Despite self-help initiatives, GPC seems to be losing market share due to significant deceleration and underperformance relative to leading peers.

Genuine Parts Company (GPC) vs. SPDR S&P 500 ETF (SPY)

Genuine Parts Company Business Overview & Revenue Model

Company DescriptionGenuine Parts Company (GPC) is a leading distributor of automotive and industrial replacement parts. Founded in 1928, the company operates through multiple divisions, the most notable being NAPA Auto Parts, which provides a vast range of automotive parts and accessories. GPC also serves industrial markets through its Motion Industries segment, offering products like bearings, mechanical power transmission components, and electrical products. With a strong presence in North America, Europe, and Australasia, GPC is known for its extensive distribution network and comprehensive inventory.
How the Company Makes MoneyGenuine Parts Company generates revenue primarily through the sale of automotive and industrial replacement parts. The company's key revenue streams include its NAPA Auto Parts stores, which sell a wide array of vehicle parts and accessories to both professional repair shops and do-it-yourself customers. Additionally, GPC's Motion Industries segment provides industrial parts and services to a diverse range of industries, including manufacturing, food and beverage, and pharmaceuticals. The company benefits from strategic partnerships with manufacturers and suppliers, ensuring a steady supply of products to meet customer demands. GPC's earnings are further bolstered by its focus on operational efficiency and a robust supply chain, enabling it to offer competitive pricing and reliable service.

Genuine Parts Company Key Performance Indicators (KPIs)

Any
Any
Net Sales by Segment
Net Sales by Segment
Shows revenue generated from each business segment, highlighting which areas are driving growth and which may need strategic adjustments.
Chart InsightsGenuine Parts Company's automotive segment has shown consistent growth, with a notable increase in 2024, driven by strategic initiatives despite softer organic sales in the U.S. and Europe. The industrial segment, however, faces challenges with flat sales growth, as highlighted in the earnings call. The company is leveraging acquisitions and a modernized e-commerce platform to counteract pressures from tariffs and inflation. While the automotive segment benefits from a 2.5% sales increase, the industrial segment's stagnation underscores the need for strategic adjustments to maintain momentum.
Data provided by:Main Street Data

Genuine Parts Company Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: 7.52%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive developments, such as sales growth and gross margin improvement, alongside significant challenges related to tariffs, cost pressures, and market uncertainties. While there were strategic achievements, the revised outlook and persistent headwinds suggest a cautious approach moving forward.
Q2-2025 Updates
Positive Updates
Increase in Total GPC Sales
Total GPC sales reached $6.2 billion, a 3.4% increase compared to the same period last year.
Gross Margin Expansion
Gross margin expanded by 110 basis points year-over-year, driven by strategic pricing and sourcing initiatives.
Growth in E-commerce Sales
E-commerce sales at Motion now account for 40% of sales, up over 10% since the start of 2024.
Industrial Segment Turnaround
The industrial segment saw a 1% increase in total sales, marking the first quarter of sales growth in the past year.
Asia Pacific Double-Digit Growth
Asia Pacific automotive sales experienced a 13% increase, with comparable sales growth of approximately 5%.
Negative Updates
Impact of Tariffs and Trade Uncertainty
The ongoing tariff situation has led to market uncertainty and is expected to impact results in the latter half of the year.
Decline in Global Automotive Segment EBITDA Margin
The Global Automotive segment EBITDA margin fell by 110 basis points compared to last year, reflecting cost pressures in salaries, wages, rent, and freight.
Negative Impact on Earnings
Adjusted EPS for the second quarter was down 14% year-over-year, influenced by lower pension income and higher depreciation and interest expenses.
Ongoing Challenges in European Market
European automotive sales were flat, with comparable sales down approximately 1%, amidst payroll and rent inflationary pressures.
Revised 2025 Outlook
The 2025 earnings outlook has been revised downward due to moderated growth expectations and the impact of tariffs.
Company Guidance
During the Genuine Parts Company second-quarter 2025 earnings call, the company provided updated guidance for the year, citing several key metrics and adjustments. The company reported total sales of $6.2 billion, representing a 3.4% increase from the previous year. Gross margin improved by 110 basis points due to strategic pricing and sourcing initiatives. However, the global automotive segment saw a 110 basis point decrease in EBITDA margin, impacted by rising costs in salaries, rent, and freight. The industrial segment, on the other hand, achieved a 10 basis point increase in EBITDA margin. Genuine Parts revised its full-year adjusted earnings per share guidance to a range of $7.50 to $8.00, down from the previously expected $7.75 to $8.25, due to tariffs and moderated growth expectations. The company anticipates low single-digit pricing benefits and cost increases due to tariffs for the remainder of the year. Despite these challenges, the company remains focused on strategic initiatives, with expectations of generating $1.1 billion to $1.3 billion in cash from operations and $700 million to $900 million in free cash flow.

Genuine Parts Company Financial Statement Overview

Summary
Genuine Parts Company exhibits strong revenue growth and stable margins, supported by a manageable balance sheet despite increased leverage. However, a decline in profitability and challenges in cash flow generation highlight areas for improvement.
Income Statement
85
Very Positive
Genuine Parts Company shows a solid performance in the income statement with a steady revenue growth from $16.5 billion in 2020 to $23.6 billion TTM (Trailing-Twelve-Months). Gross profit margin has remained consistently strong, indicating effective cost management. The net profit margin decreased from 5.72% in 2023 to 3.60% TTM, highlighting a dip in profitability. However, EBITDA margin remains stable at around 7%. Revenue growth has been robust, reflecting strong market presence.
Balance Sheet
75
Positive
The balance sheet reflects a moderate risk profile with a debt-to-equity ratio that increased to 1.37 TTM from 1.32 in 2024, suggesting higher leverage. The equity ratio stands at 22.45%, indicating a reasonable level of assets financed by equity. Return on equity (ROE) decreased from 20.04% in 2023 to 19.10% TTM, reflecting a dip in profitability relative to equity. Overall, the company maintains a stable financial position with manageable debt levels.
Cash Flow
70
Positive
Cash flow analysis indicates challenges in cash generation with a decline in free cash flow from $683.9 million in 2024 to $320.6 million TTM, showing a negative growth trend. The operating cash flow to net income ratio decreased to 1.05 TTM from 1.38 in 2024, suggesting less efficiency in converting income to cash. Despite these challenges, the company maintains positive cash flows, indicating resilience amidst fluctuating cash performance.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue23.49B23.09B22.10B18.87B16.54B
Gross Profit8.52B8.29B7.74B6.63B5.65B
EBITDA1.68B2.16B1.99B1.55B1.27B
Net Income904.08M1.32B1.18B898.79M163.40M
Balance Sheet
Total Assets19.28B17.97B16.50B14.35B13.44B
Cash, Cash Equivalents and Short-Term Investments479.99M1.10B653.46M714.70M990.17M
Total Debt6.09B4.89B4.16B3.20B3.47B
Total Liabilities14.93B13.55B12.69B10.85B10.22B
Stockholders Equity4.34B4.40B3.79B3.49B3.20B
Cash Flow
Free Cash Flow683.91M922.93M1.13B992.15M1.87B
Operating Cash Flow1.25B1.44B1.47B1.26B2.02B
Investing Cash Flow-1.51B-705.79M-1.68B-506.16M171.64M
Financing Cash Flow-333.94M-292.16M205.10M-989.53M-1.51B

Genuine Parts Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price133.21
Price Trends
50DMA
124.52
Positive
100DMA
121.04
Positive
200DMA
120.42
Positive
Market Momentum
MACD
2.09
Negative
RSI
67.44
Neutral
STOCH
93.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPC, the sentiment is Positive. The current price of 133.21 is above the 20-day moving average (MA) of 125.49, above the 50-day MA of 124.52, and above the 200-day MA of 120.42, indicating a bullish trend. The MACD of 2.09 indicates Negative momentum. The RSI at 67.44 is Neutral, neither overbought nor oversold. The STOCH value of 93.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GPC.

Genuine Parts Company Risk Analysis

Genuine Parts Company disclosed 17 risk factors in its most recent earnings report. Genuine Parts Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Genuine Parts Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$81.57B34.12-174.09%5.15%5.33%
73
Outperform
$64.26B26.00-14.95%5.15%1.99%
70
Outperform
$8.46B17.9865.24%0.45%-6.43%-0.81%
66
Neutral
$18.73B23.2017.50%3.05%2.65%-32.91%
56
Neutral
€7.34B38.93-126.54%6.08%-4.68%-149.05%
52
Neutral
$47.40M-54.32%-14.49%-210.54%
47
Neutral
$3.57B59.62-23.77%1.68%-16.55%-941.57%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GPC
Genuine Parts Company
133.21
-4.32
-3.14%
AAP
Advance Auto Parts
58.68
-0.63
-1.06%
AZO
AutoZone
3,841.50
751.19
24.31%
MUSA
Murphy USA
422.59
-85.58
-16.84%
ORLY
O'Reilly Auto
98.16
24.14
32.61%
PRTS
US Auto Parts Network
0.81
-0.44
-35.20%

Genuine Parts Company Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Genuine Parts Announces Leadership Change in North America
Neutral
Jun 9, 2025

On June 9, 2025, Genuine Parts Company announced that Randy Breaux will retire as Group President, GPC North America, effective August 1, 2025, but will remain as a strategic advisor until the end of the year to ensure a smooth transition. Alain Masse, previously President of UAP Inc., will take on the newly created role of President, North American Automotive, overseeing the company’s automotive business across the region. This leadership change is part of the company’s strategic succession planning, aiming to build on the momentum in its North American automotive business and create new commercial opportunities.

The most recent analyst rating on (GPC) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Genuine Parts Company stock, see the GPC Stock Forecast page.

Executive/Board ChangesShareholder MeetingsDividends
Genuine Parts Company Elects New Director at Shareholder Meeting
Neutral
Apr 29, 2025

Genuine Parts Company announced the election of Ms. Laurie Schupmann as a new director following the retirement of four board members at the 2025 Annual Meeting of Shareholders held on April 28, 2025. The meeting also saw the approval of executive compensation, amendments to the company’s articles of incorporation, and the ratification of Ernst & Young LLP as auditors, while a proposal on diversity efforts was rejected. Additionally, the board declared a regular quarterly cash dividend of $1.03 per share, payable on July 2, 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025