Genuine Parts Company (GPC) AI Stock Analysis

• Market Cap: $19.65B
• Dividend Yield: 2.9%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.68
• Revenue Growth: 2.65%
• EPS Growth: -32.91%
• Country: US
• Employees: 63,000
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Specialty Retail
• EPS (TTM): 2.10
• Shares Outstanding: 139,092,300
• 10 Day Avg. Volume: 896,343
• 30 Day Avg. Volume: 1,101,391
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: 13.89
• 1Y Price Target: $141.40
• Price Target Upside: 0.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: $148.00 ▲(4.78% Upside)

Genuine Parts Company receives a score of 67, reflecting solid financial performance and strategic corporate initiatives. However, high valuation and mixed technical indicators, along with challenges highlighted in the earnings call, temper the overall outlook.

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. Its Automotive Parts segment contributes a significant portion of its earnings, driven by sales to repair shops, retailers, and consumers. The Industrial Parts segment provides another critical revenue stream, focusing on various industries such as manufacturing and construction. GPC also benefits from strategic partnerships with manufacturers and suppliers, allowing it to offer a wide range of high-quality products. Additionally, the company leverages its extensive distribution network to ensure efficient delivery and inventory management, which enhances customer satisfaction and leads to repeat business. Overall, GPC's revenue model is supported by its focus on customer service, product availability, and a strong brand reputation in the marketplace.

Genuine Parts Company Financial Statement Overview

Summary

Genuine Parts Company shows solid financial performance with steady revenue growth and strong gross margins. However, challenges include a decline in net profit margin and free cash flow, highlighting difficulties in maintaining profitability amidst rising costs. The balance sheet is stable with moderate leverage, but the decrease in return on equity indicates challenges in generating returns.

Income Statement

Genuine Parts Company has demonstrated consistent revenue growth with a 2.88% increase in TTM revenue compared to the previous annual period. The gross profit margin stands at a healthy 36.88%, indicating effective cost management. Net profit margin, however, shows a decline to 3.40% in TTM from 3.85%, reflecting pressure on profitability. EBIT and EBITDA margins are stable, though slightly lower compared to historical performance, reflecting resilient operational efficiency despite increased cost pressures.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.37, suggesting a balanced leverage position. Stockholders' equity has been growing, supporting a stable equity ratio of 23.01%. The return on equity has decreased to 17.20% in TTM from previous levels, indicating some challenges in generating returns from equity investments. Overall, the company maintains a solid asset base with prudent leverage.

Cash Flow

Cash flow metrics are mixed, with a significant decline in free cash flow by 63.23% in TTM, pointing to increased capital expenditures or reduced cash inflows. The operating cash flow to net income ratio is robust at 1.00, indicating effective cash conversion from operations. However, the free cash flow to net income ratio has decreased to 0.31, reflecting pressure on free cash generation due to higher capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.77B	23.49B	23.09B	22.10B	18.87B	16.54B
Gross Profit	8.77B	8.52B	8.29B	7.74B	6.63B	5.65B
EBITDA	1.65B	1.68B	2.16B	1.99B	1.55B	743.26M
Net Income	808.91M	904.08M	1.32B	1.18B	898.79M	-29.10M
Balance Sheet
Total Assets	20.43B	19.28B	17.97B	16.50B	14.35B	13.44B
Cash, Cash Equivalents and Short-Term Investments	457.99M	479.99M	1.10B	653.46M	714.70M	990.17M
Total Debt	6.42B	5.74B	4.89B	4.16B	3.20B	3.47B
Total Liabilities	15.71B	14.93B	13.55B	12.69B	10.85B	10.22B
Stockholders Equity	4.70B	4.34B	4.40B	3.79B	3.49B	3.20B
Cash Flow
Free Cash Flow	251.53M	683.91M	922.93M	1.13B	992.15M	1.87B
Operating Cash Flow	808.45M	1.25B	1.44B	1.47B	1.26B	2.02B
Investing Cash Flow	-1.06B	-1.51B	-705.79M	-1.68B	-506.16M	171.64M
Financing Cash Flow	150.92M	-333.94M	-292.16M	205.10M	-989.53M	-1.51B

Genuine Parts Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 141.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 141.25 is above the 20-day moving average (MA) of 137.38, above the 50-day MA of 131.27, and above the 200-day MA of 122.19, indicating a bullish trend. The MACD of 2.13 indicates Positive momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 36.20 is Neutral, 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
TSCO	80 Outperform	$32.60B	30.26	45.34%	1.50%	2.96%	-2.02%
AZO	78 Outperform	$69.92B	28.35	-14.95%	―	5.15%	1.99%
ORLY	70 Neutral	$89.13B	37.57	-174.09%	―	5.15%	5.33%
GPC	67 Neutral	$19.65B	23.47	17.50%	2.90%	2.65%	-32.91%
Sector *	61 Neutral	$17.96B	13.14	-5.29%	3.00%	1.25%	-13.95%
MUSA	59 Neutral	$7.21B	15.37	67.31%	0.54%	-7.95%	-2.60%
AAP	48 Neutral	$3.57B	59.62	-24.78%	1.67%	-22.50%	-35219.23%

Genuine Parts Company Corporate Events

Genuine Parts Company Announces Cooperation Agreement with Elliott

On September 4, 2025, Genuine Parts Company announced a Cooperation Agreement with Elliott Investment Management, leading to the appointment of two new independent directors, Matthew A. Carey and Court D. Carruthers, to its Board. This strategic move is part of the company’s ongoing board refreshment program aimed at enhancing operational performance and shareholder value. Concurrently, the company announced the retirement of long-serving directors John R. Holder and Robin C. Loudermilk, Jr. Additionally, retention awards and a new Severance Agreement were approved for key executives to ensure continuity during organizational changes. These developments reflect Genuine Parts Company’s commitment to advancing its long-term growth objectives and responding to shareholder interests.

Genuine Parts Declares Quarterly Cash Dividend

On August 12, 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. This dividend, payable on October 2, 2025, to shareholders of record on September 5, 2025, reflects the company’s commitment to providing consistent returns to its investors, reinforcing its stable financial position in the automotive and industrial parts industry.

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.