Genuine Parts Company (GPC)
NYSE:GPC
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Genuine Parts Company
(NYSE:GPC)
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Rating:63Neutral
Price Target:
$114.00
▲(5.01% Upside)
Action:ReiteratedDate: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 & NAPA distribution network
GPC's large multi-tier distribution footprint and long-standing supplier ties create durable procurement scale and inventory availability. That scale supports recurring demand from repair shops, fleets and retailers, enabling stable sales volume, negotiating leverage and resilience through industry cycles.
Negative Factors
Profitability collapse in 2025
A dramatic net margin compression materially reduced ROE and earnings power, signaling operational or one‑off hits that weakened reported profitability. Persistent low margins constrain reinvestment, dividend safety and capacity to absorb further cost shocks absent sustained margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & NAPA distribution network
GPC's large multi-tier distribution footprint and long-standing supplier ties create durable procurement scale and inventory availability. That scale supports recurring demand from repair shops, fleets and retailers, enabling stable sales volume, negotiating leverage and resilience through industry cycles.
Read all positive factors
Genuine Parts Company (GPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.94B
Dividend Yield3.33%
Average Volume (3M)2.04M
Price to Earnings (P/E)259.1
Beta (1Y)0.51
Revenue Growth3.26%
EPS Growth-25.41%
CountryUS
Employees63,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.55
Shares Outstanding137,622,100
10 Day Avg. Volume1,968,355
30 Day Avg. Volume2,036,861
Financial Highlights & Ratios
PEG Ratio-2.79
Price to Book (P/B)3.86
Price to Sales (P/S)0.70
P/FCF Ratio40.59
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit2.61
Enterprise Value/Ebitda30.62
Forecast
1Y Price Target
$142.40Price Target Upside31.17% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)7.81
Revenue Forecast (FY)$25.37B
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...
How the Company Makes Money
GPC makes money primarily by distributing replacement parts and related products to business and retail customers at a markup over its purchase cost, with revenues recognized from the sale of goods through its Automotive and Industrial segments.
...
Genuine Parts Company Key Performance Indicators (KPIs)
Any
Number of Locations
Counts the total outlets or branches, reflecting the company's market presence and potential for customer reach and service delivery.
Counts the total outlets or branches, reflecting the company's market presence and potential for customer reach and service delivery.
Data provided by:
The Fly
The FlyGenuine Parts Company Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Neutral
Balanced outcome: the call highlighted meaningful strategic progress (separation plan, margin expansion, restructuring savings, industrial and Asia/Canada outperformance, stronger e-commerce) and a constructive 2026 outlook, while also disclosing significant near-term challenges (large one-time pension and supplier charges, softness in Europe and U.S. independent owners, margin and SG&A pressure). The positives include durable operational improvements and a path to adjusted EPS growth, but material nonrecurring charges and lingering regional/partner weakness temper near-term results.Positive Updates
Strategic Separation Announced
Company announced intent to separate into two independent public companies (Global Automotive and Global Industrial), targeting completion in 2027; separation intended to unlock value, enable business-specific investments, and maintain investment-grade targets for both businesses.
Negative Updates
One-Time Pension and Other Nonrecurring Charges
Recorded $1.1 billion pre-tax ($825 million after tax) of one-time adjustments in Q4, including a $742 million noncash settlement charge from U.S. pension plan termination, which materially depressed GAAP results.
Read all updates
Q4-2025 Updates
Positive
Negative
Strategic Separation Announced
Company announced intent to separate into two independent public companies (Global Automotive and Global Industrial), targeting completion in 2027; separation intended to unlock value, enable business-specific investments, and maintain investment-grade targets for both businesses.
Read all positive updates
Company Guidance
The company guided 2026 adjusted diluted EPS of $7.50–$8.00 (GAAP EPS $6.10–$6.60), implying ~5% growth at the midpoint versus 2025 adjusted EPS of $7.37, on total GPC sales growth of 3.0%–5.5% (market growth assumed roughly flat, pricing/inflation about 2% with ~1 point from tariffs). By segment they expect North America Automotive sales +3%–5% (comps 1.5%–3.5%) with EBITDA $700M–$730M (+5%–9%), International Automotive sales +3%–6% (comps 1.5%–3.5%) with EBITDA $560M–$600M (+4%–10%), and Industrial sales +3%–6% (comps 3%–6%) with EBITDA $1.2B–$1.3B (+7%–12%); consolidated adjusted EBITDA is $2.0B–$2.2B (+2%–9%). They forecast 40–60 bps of gross margin expansion, SG&A deleverage of 30–50 bps, transformation costs of $225M–$250M with $100M–$125M benefit, D&A $515M–$540M, interest $180M–$190M, a ~$30M headwind from depreciation/interest, corporate costs 1.5%–2% of sales, cash from operations $1.0B–$1.2B (≈+20%), CapEx $450M–$500M (~2% of revenue), and M&A $300M–$350M; they expect sequential earnings acceleration but are watchful on Europe, independent owners, and PMI trends.Genuine Parts Company Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
54
Neutral
Cash Flow
62
Positive
| 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
Neutral
108.56
Price Trends
118.88
Negative
123.12
Negative
126.44
Negative
Market Momentum
-3.07
Negative
47.90
Neutral
70.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPC, the sentiment is Neutral. The current price of 108.56 is above the 20-day moving average (MA) of 103.98, below the 50-day MA of 118.88, and below the 200-day MA of 126.44, indicating a neutral trend. The MACD of -3.07 indicates Negative momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 70.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GPC.
Genuine Parts Company Risk Analysis
Genuine Parts Company disclosed 19 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $24.02B | 24.85 | 44.36% | 1.80% | 4.26% | 0.73% | |
64 Neutral | $9.20B | 16.55 | 74.25% | 0.53% | -6.08% | -2.40% | |
63 Neutral | $14.94B | 259.07 | 1.44% | 3.33% | 3.26% | -25.41% | |
62 Neutral | $79.15B | 30.60 | -239.04% | ― | 6.19% | 6.98% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $58.46B | 33.35 | -72.31% | ― | 3.81% | -4.26% | |
50 Neutral | $3.40B | 52.94 | 2.00% | 2.53% | -19.41% | -957.94% |
* Consumer Cyclical Sector Average
GPC
Genuine Parts Company
108.56
-1.10
-1.00%
AAP
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56.53
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AZO
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MUSA
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496.23
16.87
3.52%
ORLY
O'Reilly Auto
94.40
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TSCO
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45.64
-4.81
-9.53%
Genuine Parts Company Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Genuine Parts Plans Automotive-Industrial Business Separation for 2026
Positive
Feb 17, 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 re...
Business Operations and StrategyExecutive/Board Changes
Genuine Parts CEO Will Stengel Named Chairman-Elect
Positive
Jan 15, 2026
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 ...
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.