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Genuine Parts Company
(NYSE:GPC)
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Rating:55Neutral
Price Target:
$139.00
▲(11.91% Upside)
Action:Reiterated
Date:07/21/26
The score is held back primarily by weak recent profitability and elevated leverage metrics despite solid revenue growth and improved TTM free cash flow. Technicals are a clear positive with the stock in an uptrend, while valuation is a major drag due to an extremely high P/E (partly offset by a ~3.4% dividend). Earnings call commentary is moderately constructive on guidance and operational progress but includes notable cost and geopolitical headwinds.
Positive Factors
Free cash flow rebound
The company’s strong TTM operating cash flow (~$1.19B) and a rebound in free cash flow (~$759M) provide durable internal funding for capex, dividends, and separation costs. Reliable cash generation supports capital allocation flexibility and de‑leveraging even when GAAP earnings are volatile.
Negative Factors
Thin profitability / margin erosion
Margins have compressed to near‑breakeven levels, undermining earnings resilience and return metrics. Persistently thin net margins limit internal reinvestment, reduce buffer against cost shocks and weaken the company’s ability to generate sustainable incremental equity returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow rebound
The company’s strong TTM operating cash flow (~$1.19B) and a rebound in free cash flow (~$759M) provide durable internal funding for capex, dividends, and separation costs. Reliable cash generation supports capital allocation flexibility and de‑leveraging even when GAAP earnings are volatile.
Read all positive factors
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 (GPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.15B
Dividend Yield3.36%
Average Volume (3M)2.11M
Price to Earnings (P/E)478.3
Beta (1Y)0.70
Revenue Growth5.47%
EPS Growth-95.54%
CountryUS
Employees65,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.26
Shares Outstanding137,859,760
10 Day Avg. Volume2,018,003
30 Day Avg. Volume2,113,297
Financial Highlights & Ratios
PEG Ratio-2.82
Price to Book (P/B)3.86
Price to Sales (P/S)0.70
P/FCF Ratio40.59
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$144.67Price Target Upside16.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)7.74
Revenue Forecast (FY)$25.54B
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 it...
How the Company Makes Money
GPC makes money primarily by purchasing replacement parts and related products from manufacturers and other suppliers and reselling them at a markup through its distribution network and service platform. Its key revenue streams are (1) Automotive ...
Genuine Parts Company Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Positive
The call presented a predominately constructive operational and financial picture: company-wide sales growth (~6%), segment-level EBITDA growth across all businesses, gross margin expansion, improved industrial momentum, and clear progress toward the planned separation. These positives were tempered by ongoing inflationary pressures, expense growth (SG&A, healthcare, freight, rent), a measurable but contained Iran-related EBITDA headwind (~$16M in Q2 with $20–$30M expected for the remainder of the year), and modest moderation in Global Automotive demand and independent-owner performance. Management reaffirmed adjusted EPS guidance while incorporating prudent second-half assumptions and outlined estimated post-separation corporate cost allocations. Overall the highlights (broad-based sales and EBITDA growth, margin progress, cash generation, and separation progress) outweigh the lowlights (inflation, conflict-related costs, and some margin/owner-performance pressures), supporting a positive near-term outlook but with clear operational risks to monitor.Positive Updates
Total Company Sales Growth
Total GPC sales of $6.5 billion in Q2 2026, up approximately $400 million or ~6% versus Q2 2025, driven by higher sales across all segments and a 340 basis point improvement in comparable sales.
Negative Updates
Inflationary and Iran Conflict Headwinds
Iran conflict contributed an estimated $16 million negative impact to Q2 EBITDA (in line with prior guidance); company now expects $20–$30 million of incremental costs for the remainder of the year tied to the conflict (higher fuel, freight, and other operating expenses).
Read all updates
Q2-2026 Updates
Positive
Negative
Total Company Sales Growth
Total GPC sales of $6.5 billion in Q2 2026, up approximately $400 million or ~6% versus Q2 2025, driven by higher sales across all segments and a 340 basis point improvement in comparable sales.
Read all positive updates
Company Guidance
GPC reaffirmed 2026 adjusted diluted EPS guidance of $7.50–$8.00 (about +5% at the midpoint vs. 2025) while expecting reported diluted EPS including restructuring and separation costs of $5.90–$6.40; full‑year sales are projected to grow 3.0%–5.5% with roughly a 2% benefit from pricing/tariffs/inflation, about 1 point from M&A carryover, ~1 point from strategic initiatives and ~1 point from FX, and management is modeling low‑single‑digit inflation across revenue, COGS and SG&A. Transformation expenses are expected to be $225–$250 million with $100–$125 million of 2026 savings; depreciation and interest are expected to reduce EPS by roughly $0.30, and management now assumes $20–$30 million of incremental Iran‑related costs in H2 (Q2 impact ≈$16 million to EBITDA). Year‑to‑date restructuring costs were $134 million with $55 million of savings realized (≈$30 million in Q2, a $0.16/share benefit); 2025 corporate costs were ≈$360 million, with $210–$230 million allocated to Global Automotive (including ≈$20 million asbestos) plus $25–$40 million dis‑synergies (≈$250 million total) and pro‑forma incremental costs for Global Industrial of ≈$100 million, while ≈$50 million of AR financing fees remain under review.Genuine Parts Company Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
44
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.07B | 24.30B | 23.49B | 23.09B | 22.10B | 18.87B |
| Gross Profit | 9.08B | 8.40B | 8.52B | 8.29B | 7.74B | 6.63B |
| EBITDA | 736.59M | 753.70M | 1.68B | 2.16B | 1.99B | 1.55B |
| Net Income | 32.77M | 65.94M | 904.08M | 1.32B | 1.18B | 898.79M |
Balance Sheet | ||||||
| Total Assets | 21.06B | 20.80B | 19.28B | 17.97B | 16.50B | 14.35B |
| Cash, Cash Equivalents and Short-Term Investments | 559.12M | 477.18M | 479.99M | 1.10B | 653.46M | 714.70M |
| Total Debt | 6.65B | 8.27B | 5.74B | 4.89B | 4.16B | 3.48B |
| Total Liabilities | 16.51B | 16.36B | 14.93B | 13.55B | 12.69B | 10.85B |
| Stockholders Equity | 4.53B | 4.42B | 4.34B | 4.40B | 3.79B | 3.49B |
Cash Flow | ||||||
| Free Cash Flow | 759.35M | 420.92M | 683.91M | 922.93M | 1.13B | 992.15M |
| Operating Cash Flow | 1.19B | 890.76M | 1.25B | 1.44B | 1.47B | 1.26B |
| Investing Cash Flow | -621.64M | -711.59M | -1.51B | -705.79M | -1.68B | -506.16M |
| Financing Cash Flow | -435.94M | -209.25M | -333.94M | -292.16M | 205.10M | -989.53M |
Genuine Parts Company Technical Analysis
Positive
124.21
Price Trends
116.00
Positive
109.40
Positive
117.41
Positive
Market Momentum
4.35
Negative
67.63
Neutral
93.64
Negative
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 124.21 is below the 20-day moving average (MA) of 126.04, above the 50-day MA of 116.00, and above the 200-day MA of 117.41, indicating a bullish trend. The MACD of 4.35 indicates Negative momentum. The RSI at 67.63 is Neutral, neither overbought nor oversold. The STOCH value of 93.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $74.05B | 28.19 | -232.45% | ― | 8.47% | 12.39% | |
63 Neutral | $16.14B | 16.03 | 39.30% | 3.03% | 3.98% | -5.90% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $49.24B | 20.22 | -80.35% | ― | 5.74% | -1.73% | |
58 Neutral | $3.35B | 75.74 | 2.00% | 1.79% | -8.26% | ― | |
55 Neutral | $17.15B | 478.35 | 0.72% | 3.37% | 5.47% | -95.54% | |
55 Neutral | $11.23B | 20.78 | 94.56% | 0.40% | -1.25% | 21.59% |
* Consumer Cyclical Sector Average
GPC
Genuine Parts Company
135.63
6.84
5.31%
AAP
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AZO
AutoZone
3,127.29
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MUSA
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520.07
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38.05%
ORLY
O'Reilly Auto
93.53
-10.07
-9.72%
TSCO
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34.56
-23.75
-40.73%
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.