Genuine Parts Company (GPC) AI Stock Analysis

• Market Cap: $17.68B
• Dividend Yield: 3.23%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.62
• Revenue Growth: 1.99%
• EPS Growth: -32.18%
• Country: US
• Employees: 63,000
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Specialty Retail
• EPS (TTM): 1.75
• Shares Outstanding: 138,789,640
• 10 Day Avg. Volume: 1,102,244
• 30 Day Avg. Volume: 1,068,831
• PEG Ratio: -3.26
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 51.84
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 2.62
• Enterprise Value/Ebitda: 3.08
• 1Y Price Target: $140.00
• Price Target Upside: 9.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: $132.00 ▲(3.60%Upside)

Genuine Parts Company's overall stock score reflects strong financial performance with solid revenue growth and strategic initiatives underpinning future prospects. However, technical analysis indicates mixed momentum, and valuation suggests the stock is fairly priced. The earnings call underscores both opportunities and challenges, particularly in cash flow generation.

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 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 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 Financial Statement Overview

Summary

Genuine Parts Company exhibits strong revenue growth and stable margins, supported by a manageable balance sheet despite increased leverage. Profitability has declined slightly, with challenges in cash flow generation that highlight opportunities for improvement.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.57B	23.49B	23.09B	22.10B	18.87B	16.54B
Gross Profit	8.52B	8.52B	8.29B	7.74B	6.63B	5.65B
EBITDA	1.65B	1.68B	2.16B	1.99B	1.55B	1.27B
Net Income	849.57M	904.08M	1.32B	1.18B	898.79M	163.40M
Balance Sheet
Total Assets	19.82B	19.28B	17.97B	16.50B	14.35B	13.44B
Cash, Cash Equivalents and Short-Term Investments	420.45M	479.99M	1.10B	653.46M	714.70M	990.17M
Total Debt	6.10B	5.74B	4.89B	4.16B	3.20B	3.47B
Total Liabilities	15.35B	14.93B	13.55B	12.69B	10.85B	10.22B
Stockholders Equity	4.45B	4.34B	4.40B	3.79B	3.49B	3.20B
Cash Flow
Free Cash Flow	320.63M	683.91M	922.93M	1.13B	992.15M	1.87B
Operating Cash Flow	892.12M	1.25B	1.44B	1.47B	1.26B	2.02B
Investing Cash Flow	-1.48B	-1.51B	-705.79M	-1.68B	-506.16M	171.64M
Financing Cash Flow	-29.97M	-333.94M	-292.16M	205.10M	-989.53M	-1.51B

Genuine Parts Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 127.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 127.41 is above the 20-day moving average (MA) of 122.42, above the 50-day MA of 121.86, and above the 200-day MA of 121.05, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 93.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GPC.

Genuine Parts Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORLY	73 Outperform	$76.35B	32.83	-174.09%	―	4.90%	3.28%
AZO	68 Neutral	$61.65B	24.94	-14.95%	―	5.15%	1.99%
GPC	67 Neutral	$17.68B	20.93	19.19%	3.23%	1.99%	-32.18%
MUSA	61 Neutral	$8.36B	17.84	65.24%	0.48%	-6.43%	-0.81%
Sector *	56 Neutral	$3.37B	4.05	-1.30%	6.64%	0.16%	-63.79%
AAP	55 Neutral	$3.09B	59.62	-23.77%	2.04%	-16.55%	-941.57%
PRTS	48 Neutral	$44.27M	―	-54.32%	―	-14.49%	-210.54%

Genuine Parts Company Corporate Events

Genuine Parts Announces Leadership Change in North America

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.

Genuine Parts Company Elects New Director at Shareholder Meeting

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.