Genuine Parts Company (GPC) AI Stock Analysis

• Market Cap: $16.35B
• Dividend Yield: 3.33%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 245.3
• Beta (1Y): 0.53
• Revenue Growth: 3.26%
• EPS Growth: -25.41%
• Country: US
• Employees: 63,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.55
• Shares Outstanding: 137,622,100
• 10 Day Avg. Volume: 1,740,708
• 30 Day Avg. Volume: 1,303,967
• PEG Ratio: -2.79
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 40.59
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 2.74
• Enterprise Value/Ebitda: 32.17
• 1Y Price Target: $142.40
• Price Target Upside: 19.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 7.82
• Revenue Forecast (FY): $25.38B

• Rating: 63 Neutral
• Price Target: $157.00 ▲(32.13% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is led by mixed fundamentals: resilient gross margin and positive (but declining) free cash flow are offset by a sharp 2025 profitability drop and higher leverage. Technicals are constructive with the stock trending above major moving averages, while valuation looks only fair given a ~25x P/E. The latest guidance supports a modest 2026 rebound, but execution risks (Europe/independent-owner softness, Automotive margin pressure, and cost inflation) keep the overall rating in the low-to-mid 60s.

Positive Factors

Scale & Diversified Revenues

GPC's large, diversified revenue base across Automotive (~$15B) and Industrial (~$9B) provides durable demand exposure and purchasing/distribution scale. That breadth supports resilience versus single-market cycles, allows cross‑selling and logistics leverage, and underpins steady service revenue over time.

Cash Generation Resilience

Positive operating and free cash flow despite a weak 2025 earnings year indicates underlying cash earnings strength. Sustained FCF supports the dividend, planned capex and M&A, and provides a buffer for deleveraging or restructuring even as accounting profits step down.

Strategic Separation & Digital/Industrial Momentum

The planned split into focused Automotive and Industrial companies is a structural change that can improve capital allocation, strategic focus, and operational cadence. Coupled with noted industrial strength and rising e‑commerce penetration, the move can unlock targeted investments and faster, segment-specific margin expansion.

Negative Factors

Profitability Collapse in 2025

A sharp decline in net margin materially reduces earnings resilience and ROE, leaving less room to absorb cost inflation or funding costs. Even with steady gross margins, the earnings hit undermines internal funding capacity and makes multi‑period recovery dependent on sustained margin restoration and cost control.

Elevated and Rising Leverage

Rising leverage increases financial risk and interest sensitivity just as profitability weakened. Higher debt-to-equity constrains flexibility for strategic investments or buybacks, raises refinancing risk if markets turn, and amplifies the impact of any further cash‑flow deterioration on credit metrics.

Regional, Channel & Cost Pressures

Persistent softness in Europe and among U.S. independent owners, combined with SG&A inflation and automotive margin pressure, threatens multi‑segment profit recovery. Structural demand weakness or sustained cost inflation would slow margin normalization and make results contingent on successful restructuring and market improvement.

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

Revenue has grown since 2020 but recently cooled (2025 essentially flat), while profitability deteriorated sharply in 2025 (net margin ~0.3% vs ~3.8% in 2024). Leverage is elevated and rising (debt-to-equity ~1.48 in 2025) and ROE fell materially, but operating cash flow (~$0.89B) and free cash flow (~$0.42B) remain positive and held up better than net income, despite a multi-year downtrend.

Income Statement

Revenue has grown meaningfully since 2020, but the trajectory has cooled recently: 2024 was modestly up and 2025 was essentially flat. Profitability has weakened sharply in 2025, with net profit margin compressing to ~0.3% versus ~3.8% in 2024 and ~5.7% in 2023, indicating a major earnings deterioration despite a relatively steady gross margin (~36–37%). Overall: strong top-line scale and decent gross profitability, offset by a pronounced recent hit to operating/earnings performance.

Balance Sheet

Leverage is elevated and rising: debt-to-equity increased from ~0.92 (2021) to ~1.48 (2025), alongside higher total debt. Equity has been relatively stable, but returns have fallen dramatically with the 2025 earnings drop (return on equity down to ~1.5% from ~20.8% in 2024). The balance sheet is serviceable given asset size, but the combination of higher leverage and weaker profitability increases financial risk.

Cash Flow

Cash generation remains positive, with operating cash flow of ~$0.89B and free cash flow of ~$0.42B in 2025. However, cash flow has stepped down versus prior years (operating cash flow ~$1.25B in 2024 and ~$1.44B in 2023; free cash flow ~$0.68B in 2024 and ~$0.92B in 2023). A key positive is that free cash flow still exceeds reported net income in 2025 (given the earnings collapse), suggesting cash earnings are holding up better than accounting profits; the primary negative is the downtrend in absolute free cash flow since 2022.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.30B	23.49B	23.09B	22.10B	18.87B
Gross Profit	8.40B	8.52B	8.29B	7.74B	6.63B
EBITDA	753.70M	1.68B	2.16B	1.99B	1.55B
Net Income	65.94M	904.08M	1.32B	1.18B	898.79M
Balance Sheet
Total Assets	20.80B	19.28B	17.97B	16.50B	14.35B
Cash, Cash Equivalents and Short-Term Investments	477.18M	479.99M	1.10B	653.46M	714.70M
Total Debt	8.27B	5.74B	4.89B	4.16B	3.20B
Total Liabilities	16.36B	14.93B	13.55B	12.69B	10.85B
Stockholders Equity	4.42B	4.34B	4.40B	3.79B	3.49B
Cash Flow
Free Cash Flow	420.92M	683.91M	922.93M	1.13B	992.15M
Operating Cash Flow	890.76M	1.25B	1.44B	1.47B	1.26B
Investing Cash Flow	-711.59M	-1.51B	-705.79M	-1.68B	-506.16M
Financing Cash Flow	-209.25M	-333.94M	-292.16M	205.10M	-989.53M

Genuine Parts Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 118.82
• 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 118.82 is below the 20-day moving average (MA) of 136.99, below the 50-day MA of 132.35, and below the 200-day MA of 129.56, indicating a bearish trend. The MACD of -4.06 indicates Positive momentum. The RSI at 31.45 is Neutral, neither overbought nor oversold. The STOCH value of 4.86 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	67 Neutral	$28.04B	26.17	45.18%	1.80%	4.26%	0.73%
GPC	63 Neutral	$16.35B	245.27	1.51%	3.33%	3.26%	-25.41%
AZO	63 Neutral	$62.70B	26.39	―	―	3.81%	-4.26%
ORLY	62 Neutral	$79.62B	31.83	―	―	6.19%	6.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MUSA	52 Neutral	$7.19B	16.25	64.31%	0.53%	-6.08%	-2.40%
AAP	48 Neutral	$3.23B	76.26	3.11%	2.53%	-19.41%	-957.94%

Genuine Parts Company Corporate Events

Genuine Parts Plans Automotive-Industrial Business Separation for 2026

On February 17, 2026, Genuine Parts Company reported fourth-quarter 2025 sales of $6.0 billion, up 4.1% year over year, but booked a net loss of $609 million due largely to a one-time, non-cash pension settlement charge, while adjusted earnings remained profitable. For full-year 2025, sales grew 3.5% to $24.3 billion with $1.0 billion in adjusted net income, and the board approved a 3.2% dividend increase to $4.25 annually, extending the company’s 70-year streak of annual dividend hikes and signaling confidence despite margin pressures and restructuring costs.

Segment results showed modest growth in North America Automotive, stronger top-line gains but margin compression in International Automotive, and solid revenue and margin expansion in the Industrial segment. The company ended 2025 with $1.5 billion of liquidity and positive free cash flow and, alongside its 2026 outlook calling for 3% to 5.5% sales growth, it announced plans to separate its automotive and industrial operations into two independent public companies to sharpen strategic focus and potentially unlock shareholder value.

The most recent analyst rating on (GPC) stock is a Buy with a $162.00 price target. To see the full list of analyst forecasts on Genuine Parts Company stock, see the GPC Stock Forecast page.

Genuine Parts CEO Will Stengel Named Chairman-Elect

On January 15, 2026, Genuine Parts Company announced that long-serving Non-Executive Chairman Paul D. Donahue will retire from the board at the company’s 2026 annual meeting of shareholders, ending a tenure in which he helped streamline the portfolio, strengthen governance and lay a foundation for improved operational performance and shareholder value. In conjunction with his planned departure, the board has appointed President and Chief Executive Officer Will Stengel as Chairman-elect, with Stengel set to assume the combined roles of chairman and CEO upon Donahue’s retirement, a move intended to unify leadership, leverage Stengel’s operational and strategic expertise, and signal board confidence in his ability to drive profitable growth and long-term value for investors.

The most recent analyst rating on (GPC) stock is a Hold with a $134.00 price target. To see the full list of analyst forecasts on Genuine Parts Company stock, see the GPC Stock Forecast page.