Genuine Parts Company (GPC) AI Stock Analysis

• Market Cap: $17.71B
• Dividend Yield: 3.31%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.64
• Revenue Growth: 3.26%
• EPS Growth: -25.41%
• Country: US
• Employees: 63,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.98
• Shares Outstanding: 139,110,500
• 10 Day Avg. Volume: 1,357,361
• 30 Day Avg. Volume: 1,110,419
• PEG Ratio: -0.58
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 23.77
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 2.84
• Enterprise Value/Ebitda: 15.12
• 1Y Price Target: $146.50
• Price Target Upside: 18.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: $140.00 ▲(13.26% Upside)

Genuine Parts Company's overall stock score reflects steady revenue growth and a stable balance sheet, but challenges in profitability and cash flow stability weigh on its financial performance. Technical indicators suggest bearish momentum, while valuation metrics are moderate. The recent earnings call highlighted both positive sales growth and significant challenges, leading to a cautious outlook.

Positive Factors

Revenue Growth

Steady revenue growth indicates strong demand and effective sales strategies, supporting long-term business sustainability and market presence.

Gross Margin Improvement

Improved gross margins suggest enhanced operational efficiency and cost management, contributing to better profitability over time.

E-commerce Growth

Strong e-commerce growth reflects successful digital transformation, expanding reach and customer engagement in a growing online market.

Negative Factors

Rising SG&A Costs

Increased SG&A costs can pressure margins and profitability, challenging the company's ability to maintain cost efficiency long-term.

Tariff and Market Uncertainty

Market uncertainties and tariffs can disrupt supply chains and increase costs, posing risks to stability and strategic planning.

Decreased Profitability

Decreased profitability in key segments indicates operational challenges, potentially affecting overall financial health and investment capacity.

Genuine Parts Company Business Overview & Revenue Model

Company Description

Genuine Parts Company (GPC) is a leading distributor of automotive and industrial replacement parts, based in the United States. The company operates primarily through two segments: Automotive Parts and Industrial Parts, supplying a vast range of products including vehicle parts, tools, and maintenance supplies. GPC serves a diverse customer base, including automotive repair shops, industrial manufacturers, and original equipment manufacturers, through its extensive network of locations across North America and beyond.

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 consistent revenue growth and strong gross margins. However, challenges are evident in declining net profit margins and free cash flow, indicating pressure on profitability and cash generation. The balance sheet remains stable with moderate leverage.

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	24.06B	23.49B	23.09B	22.10B	18.87B	16.54B
Gross Profit	8.91B	8.52B	8.29B	7.74B	6.63B	5.65B
EBITDA	1.67B	1.68B	2.16B	1.99B	1.55B	743.26M
Net Income	808.50M	904.08M	1.32B	1.18B	898.79M	-29.10M
Balance Sheet
Total Assets	20.69B	19.28B	17.97B	16.50B	14.35B	13.44B
Cash, Cash Equivalents and Short-Term Investments	431.36M	479.99M	1.10B	653.46M	714.70M	990.17M
Total Debt	6.40B	5.74B	4.89B	4.16B	3.20B	3.47B
Total Liabilities	15.89B	14.93B	13.55B	12.69B	10.85B	10.22B
Stockholders Equity	4.79B	4.34B	4.40B	3.79B	3.49B	3.20B
Cash Flow
Free Cash Flow	133.52M	683.91M	922.93M	1.13B	992.15M	1.87B
Operating Cash Flow	665.72M	1.25B	1.44B	1.47B	1.26B	2.02B
Investing Cash Flow	-750.28M	-1.51B	-705.79M	-1.68B	-506.16M	171.64M
Financing Cash Flow	-552.48M	-333.94M	-292.16M	205.10M	-989.53M	-1.51B

Genuine Parts Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 123.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 123.61 is below the 20-day moving average (MA) of 131.61, below the 50-day MA of 135.86, and below the 200-day MA of 125.07, indicating a bearish trend. The MACD of -2.42 indicates Positive momentum. The RSI at 26.44 is Positive, neither overbought nor oversold. The STOCH value of 4.87 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	―	$27.82B	25.34	45.46%	1.73%	4.26%	0.73%
GPC	―	$17.71B	21.93	17.05%	3.31%	3.26%	-25.41%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ORLY	―	$77.65B	31.78	―	―	6.19%	6.98%
AZO	―	$59.48B	24.68	―	―	2.43%	-3.34%
MUSA	―	$6.71B	15.10	68.48%	0.50%	-6.08%	-2.40%
AAP	―	$2.85B	-7.51	-23.85%	1.97%	-19.41%	-957.94%

Genuine Parts Company Corporate Events

Genuine Parts Co. Faces Financial Risks from Key Customer and Vendor Insolvencies

Genuine Parts faces significant business risks due to potential bankruptcy or insolvency of key customers or vendors, which could disrupt their operations and supply chain. The company’s reliance on these relationships means that any financial failure could lead to delays, increased costs, and challenges in sourcing replacement goods. Such events may also impact Genuine Parts’ ability to collect receivables, generate sales, and maintain cash flow, ultimately affecting their revenue and financial condition. The company’s brand and operating results could suffer from reduced sales, price cuts, and increased product returns, highlighting the critical nature of managing these financial dependencies.

Genuine Parts Company Reports Steady Q3 2025 Growth

Genuine Parts Company is a global leader in the distribution of automotive and industrial replacement parts, providing value-added solutions across 17 countries with a vast network of over 10,700 locations.

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.

The most recent analyst rating on (GPC) stock is a Buy with a $148.00 price target. To see the full list of analyst forecasts on Genuine Parts Company stock, see the GPC Stock Forecast page.

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.

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.