Genuine Parts Company AI Stock Analysis
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Genuine Parts Company (GPC) AI Stock Analysis
Genuine Parts Company
(NYSE:GPC)
The score is held down primarily by the sharp collapse in recent profitability (very low TTM net and EBIT margins) and an unattractive earnings-based valuation (very high P/E). Near-term technicals also lean weak (price below key short- and mid-term averages with negative MACD). Offsetting factors include resilient free cash flow, improving leverage, and a generally constructive earnings call highlighting Industrial strength and execution, though guidance points to finishing 2026 toward the lower end amid inflation and geopolitical-related costs.
Genuine Parts Company Key Performance Indicators (KPIs)
Number of LocationsCounts the total outlets or branches, reflecting the company's market presence and potential for customer reach and service delivery.
GPC is quietly optimizing its physical footprint: distribution centers and branches have been trimmed/partially consolidated since 2023 while the retail (owned/independent) base modestly expands, reflecting a push toward supply‑chain efficiency and lower fixed costs ahead of the planned separation. Management’s supply‑chain/IT capex and realized restructuring savings support this strategy. That should help margins and free cash, but consolidation plus modest independent‑owner performance creates a potential service/capacity risk if demand accelerates.
The FlyGenuine Parts Company (GPC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $17.06B
- Dividend Yield
- 3.41%
- Average Volume (3M)
- 1.00M
- Price to Earnings (P/E)
- 476.0
- Beta (1Y)
- 0.60
- Revenue Growth
- 5.29%
- EPS Growth
- -95.50%
- Country
- US
- Employees
- 65,000
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Auto - Parts
Genuine Parts Company Business Overview & Revenue Model
Company Description
Genuine Parts Company, established in Atlanta, Georgia in 1928, functions as a prominent global distributor specializing in automotive and industrial replacement parts, alongside associated materials. The company’s operations are segmented into its A...
How the Company Makes Money
GPC makes money primarily by distributing replacement parts and related products to both commercial customers and retail channels, earning revenue from product sales and, to a lesser extent, from related services and programs offered through its dist...
Genuine Parts Company Earnings Call Summary
The call was broadly positive, supported by 4% sales growth, 5% adjusted EPS growth, gross margin expansion, strong Industrial and Motion performance, progress in automotive initiatives, restructuring savings, healthy cash generation, and an on-track separation. However, automotive retail demand, North American Automotive profitability, geopolitical impacts, and broad cost inflation remained meaningful challenges, with management expecting 2026 results toward the lower end of the narrowed guidance range.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For 2026, Genuine Parts Company expects diluted earnings per share, including expenses related to restructuring efforts and year to date separation costs, to be in the range of $5.60 to $5.85, and adjusted diluted earnings per share, excluding onetime costs associated with the separation, to be in the range of $7.50 to $7.75, up 3.5% at the midpoint of the range versus 2025; the company expects to finish 2026 towards the lower end of the narrowed range, with the fourth-quarter top line to look a lot like the third quarter, continued moderating trading conditions for global automotive, and gross margin expectations unchanged. It expects $15 million to $25 million of incremental costs for the remainder of the year as a result of the Iran conflict, or $30 million to $40 million for the second half of 26, up from the previous estimate of $20 million to $30 million, and said 2.5% for the rest of the year, low single digit top line benefit, low single benefit low single digit impact to cost of goods sold, and a 3% to 4% cost inflation percentage point impact for the year; it is probably not ready to call the ball yet on 2027 inflation, but assuming that the conflict persists, it expects to remain in that low single digit top line benefit.
Genuine Parts Company Financial Statement Overview
Summary
Financial results are pressured by a sharp deterioration in profitability (TTM net margin ~0.1% and EBIT margin ~0.7% versus mid-to-high single digits historically), despite stable-to-modestly higher revenue. Leverage has improved (debt down to ~$6.8B; debt-to-equity ~1.47), and cash generation is comparatively resilient (TTM operating cash flow ~$1.20B; free cash flow ~$763M), but the earnings power step-down keeps the overall financial profile weak.
Income Statement
34NegativeBalance Sheet
48NeutralCash Flow
56Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.33B | 24.30B | 23.49B | 23.09B | 22.10B | 18.87B |
| Gross Profit | 9.22B | 8.40B | 8.52B | 8.29B | 7.74B | 6.63B |
| EBITDA | 739.19M | 753.70M | 1.68B | 2.16B | 1.99B | 1.55B |
| Net Income | 31.04M | 65.94M | 904.08M | 1.32B | 1.18B | 898.79M |
Balance Sheet | ||||||
| Total Assets | 21.50B | 20.80B | 19.28B | 17.97B | 16.50B | 14.35B |
| Cash, Cash Equivalents and Short-Term Investments | 763.15M | 477.18M | 479.99M | 1.10B | 653.46M | 714.70M |
| Total Debt | 6.82B | 8.27B | 5.74B | 4.89B | 4.16B | 3.48B |
| Total Liabilities | 16.84B | 16.36B | 14.93B | 13.55B | 12.69B | 10.85B |
| Stockholders Equity | 4.65B | 4.42B | 4.34B | 4.40B | 3.79B | 3.49B |
Cash Flow | ||||||
| Free Cash Flow | 762.85M | 420.92M | 683.91M | 922.93M | 1.13B | 992.15M |
| Operating Cash Flow | 1.20B | 890.76M | 1.25B | 1.44B | 1.47B | 1.26B |
| Investing Cash Flow | -584.71M | -711.59M | -1.51B | -705.79M | -1.68B | -506.16M |
| Financing Cash Flow | -254.57M | -209.25M | -333.94M | -292.16M | 205.10M | -989.53M |
Genuine Parts Company Technical Analysis
Price Trends
Market Momentum
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 123.75 is below the 20-day moving average (MA) of 125.16, below the 50-day MA of 128.16, and above the 200-day MA of 118.10, indicating a neutral trend. The MACD of -1.11 indicates Negative momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 46.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
3 New RisksGenuine Parts Company Peers Comparison
Overall Rating
DORM72Outperform
SMP67Neutral
LKQ47Neutral
MNRO46Neutral
MPAA46Neutral- GPC45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| DORM | 72Outperform | $4.01B | 19.90 | 13.42% | ― | 2.20% | -16.49% |
| SMP | 67Neutral | $995.77M | 14.20 | 9.86% | 2.93% | 5.50% | 119.37% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| LKQ | 47Neutral | $5.10B | 19.99 | 3.96% | 6.00% | -3.24% | -62.39% |
| MNRO | 46Neutral | $338.33M | -7686.67 | 0.14% | 9.71% | -4.43% | 99.33% |
| MPAA | 46Neutral | $140.74M | -207.63 | -0.22% | ― | -9.11% | -129.06% |
| GPC | 45Neutral | $17.19B | 475.96 | 0.69% | 3.41% | 5.29% | -95.50% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GPC | Genuine Parts | 123.75 | 0.49 | 0.40% | |
| DORM | Dorman Products | 134.55 | 0.07 | 0.05% | |
| LKQ | LKQ Corporation | 19.99 | -10.03 | -33.42% | |
| MNRO | Monro Muffler Brake | 11.53 | -4.51 | -28.12% | |
| MPAA | Motorcar Parts Of America | 7.62 | -5.39 | -41.43% | |
| SMP | Standard Motor Products | 44.31 | 7.34 | 19.85% |
Genuine Parts Company Corporate Events
Genuine Parts Company Declares Regular Quarterly Cash Dividend
PositiveOn November 9, 2026, Genuine Parts Company’s Board declared a regular quarterly cash dividend of $1.0625 per common share. The dividend was payable on January 5, 2027, to shareholders of record on December 4, 2026. The most recent analyst rating on (...
Genuine Parts Unveils New Leadership for Planned Breakup
PositiveOn September 9, 2026, Genuine Parts Company detailed leadership changes designed to steer its planned breakup into separate automotive and industrial businesses. Board member Court Carruthers became CEO-elect as of September 8, 2026 and is slated to...
Genuine Parts Company Declares Regular Quarterly Cash Dividend
PositiveOn August 11, 2026, Genuine Parts Company announced that its board of directors declared a regular quarterly cash dividend of $1.0625 per share on the company’s common stock, reinforcing its ongoing commitment to returning capital to shareholders. Th...
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: Nov 09, 2026