GENUINE PARTS CO (GPC) Stock Fundamental Analysis
USA - NYSE:GPC - US3724601055 - Common Stock
127.1 USD
-0.19 (-0.15%)
127.1 USD
0 (0%)
GPC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 23 industry peers in the Distributors industry. While GPC has a great profitability rating, there are quite some concerns on its financial health. GPC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GPC was profitable.
GPC had a positive operating cash flow in the past year.
GPC had positive earnings in 4 of the past 5 years.
In the past 5 years GPC always reported a positive cash flow from operatings.
1.2 Ratios
GPC's Return On Assets of 3.91% is fine compared to the rest of the industry. GPC outperforms 60.87% of its industry peers.
The Return On Equity of GPC (16.89%) is better than 82.61% of its industry peers.
GPC has a better Return On Invested Capital (8.91%) than 65.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GPC is below the industry average of 14.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 16.89% | ||
| ROIC | 8.91% |
ROA(3y)6.4%
ROA(5y)5.05%
ROE(3y)27.32%
ROE(5y)21.36%
ROIC(3y)12.44%
ROIC(5y)11.71%
1.3 Margins
The Profit Margin of GPC (3.36%) is better than 65.22% of its industry peers.
GPC's Profit Margin has improved in the last couple of years.
The Operating Margin of GPC (5.94%) is better than 69.57% of its industry peers.
GPC's Operating Margin has been stable in the last couple of years.
GPC has a Gross Margin of 37.03%. This is in the better half of the industry: GPC outperforms 78.26% of its industry peers.
In the last couple of years the Gross Margin of GPC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.94% | ||
| PM (TTM) | 3.36% | ||
| GM | 37.03% |
OM growth 3Y-0.11%
OM growth 5Y1.26%
PM growth 3Y-6.86%
PM growth 5Y1.67%
GM growth 3Y1.07%
GM growth 5Y1.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GPC is creating some value.
Compared to 1 year ago, GPC has less shares outstanding
Compared to 5 years ago, GPC has less shares outstanding
Compared to 1 year ago, GPC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.51 indicates that GPC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.51, GPC is in line with its industry, outperforming 43.48% of the companies in the same industry.
The Debt to FCF ratio of GPC is 35.64, which is on the high side as it means it would take GPC, 35.64 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GPC (35.64) is comparable to the rest of the industry.
GPC has a Debt/Equity ratio of 0.97. This is a neutral value indicating GPC is somewhat dependend on debt financing.
GPC has a worse Debt to Equity ratio (0.97) than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 35.64 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.95
WACC9.41%
2.3 Liquidity
GPC has a Current Ratio of 1.14. This is a normal value and indicates that GPC is financially healthy and should not expect problems in meeting its short term obligations.
GPC's Current ratio of 1.14 is on the low side compared to the rest of the industry. GPC is outperformed by 69.57% of its industry peers.
A Quick Ratio of 0.51 indicates that GPC may have some problems paying its short term obligations.
GPC has a worse Quick ratio (0.51) than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
GPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.45%.
The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
The Revenue has been growing slightly by 3.26% in the past year.
The Revenue has been growing slightly by 6.03% on average over the past years.
EPS 1Y (TTM)-15.45%
EPS 3Y5.66%
EPS 5Y7.41%
EPS Q2Q%5.32%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%4.86%
3.2 Future
Based on estimates for the next years, GPC will show a small growth in Earnings Per Share. The EPS will grow by 5.45% on average per year.
GPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.33% yearly.
EPS Next Y-5.43%
EPS Next 2Y2.06%
EPS Next 3Y4.34%
EPS Next 5Y5.45%
Revenue Next Year3.84%
Revenue Next 2Y3.75%
Revenue Next 3Y4.03%
Revenue Next 5Y3.33%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GPC is valuated rather expensively with a Price/Earnings ratio of 17.08.
Based on the Price/Earnings ratio, GPC is valued a bit cheaper than 78.26% of the companies in the same industry.
GPC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
The Price/Forward Earnings ratio is 14.97, which indicates a correct valuation of GPC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GPC indicates a somewhat cheap valuation: GPC is cheaper than 78.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, GPC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 14.97 |
4.2 Price Multiples
73.91% of the companies in the same industry are more expensive than GPC, based on the Enterprise Value to EBITDA ratio.
GPC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 132.4 | ||
| EV/EBITDA | 11.07 |
4.3 Compensation for Growth
The decent profitability rating of GPC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.3
EPS Next 2Y2.06%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
GPC has a Yearly Dividend Yield of 3.30%. Purely for dividend investing, there may be better candidates out there.
GPC's Dividend Yield is rather good when compared to the industry average which is at 3.41. GPC pays more dividend than 86.96% of the companies in the same industry.
GPC's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
5.2 History
The dividend of GPC has a limited annual growth rate of 5.74%.
GPC has paid a dividend for at least 10 years, which is a reliable track record.
GPC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.74%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
GPC pays out 69.77% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GPC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP69.77%
EPS Next 2Y2.06%
EPS Next 3Y4.34%
127.1
-0.19 (-0.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners88.59%
Inst Owner Change-1.04%
Ins Owners0.3%
Ins Owner Change4.81%
Market Cap17.68B
Revenue(TTM)24.06B
Net Income(TTM)808.50M
Analysts70.59
Price Target147.48 (16.03%)
Short Float %3.88%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend3.99
Dividend Growth(5Y)5.74%
DP69.77%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.54%
Min EPS beat(2)-1.6%
Max EPS beat(2)0.53%
EPS beat(4)3
Avg EPS beat(4)1.28%
Min EPS beat(4)-1.6%
Max EPS beat(4)3.26%
EPS beat(8)5
Avg EPS beat(8)-2.63%
EPS beat(12)9
Avg EPS beat(12)-0.26%
EPS beat(16)13
Avg EPS beat(16)2.04%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)1.23%
Revenue beat(4)1
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-0.36%
Max Revenue beat(4)1.23%
Revenue beat(8)1
Avg Revenue beat(8)-0.74%
Revenue beat(12)3
Avg Revenue beat(12)-0.59%
Revenue beat(16)7
Avg Revenue beat(16)0.47%
PT rev (1m)1.44%
PT rev (3m)5.41%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)2.2%
Revenue NQ rev (3m)2.2%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 14.97 | ||
| P/S | 0.73 | ||
| P/FCF | 132.4 | ||
| P/OCF | 26.56 | ||
| P/B | 3.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.07 |
EPS(TTM)7.44
EY5.85%
EPS(NY)8.49
Fwd EY6.68%
FCF(TTM)0.96
FCFY0.76%
OCF(TTM)4.79
OCFY3.77%
SpS172.99
BVpS34.41
TBVpS-1.41
PEG (NY)N/A
PEG (5Y)2.3
Graham Number75.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 16.89% | ||
| ROCE | 12.64% | ||
| ROIC | 8.91% | ||
| ROICexc | 9.24% | ||
| ROICexgc | 16% | ||
| OM | 5.94% | ||
| PM (TTM) | 3.36% | ||
| GM | 37.03% | ||
| FCFM | 0.55% |
ROA(3y)6.4%
ROA(5y)5.05%
ROE(3y)27.32%
ROE(5y)21.36%
ROIC(3y)12.44%
ROIC(5y)11.71%
ROICexc(3y)13.5%
ROICexc(5y)12.87%
ROICexgc(3y)27.33%
ROICexgc(5y)25.86%
ROCE(3y)16.32%
ROCE(5y)15.36%
ROICexgc growth 3Y-6.02%
ROICexgc growth 5Y1.01%
ROICexc growth 3Y-5.21%
ROICexc growth 5Y2.06%
OM growth 3Y-0.11%
OM growth 5Y1.26%
PM growth 3Y-6.86%
PM growth 5Y1.67%
GM growth 3Y1.07%
GM growth 5Y1.65%
F-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 35.64 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 111.32% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34.9% | ||
| Profit Quality | 16.51% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 2.51 |
F-Score6
WACC9.41%
ROIC/WACC0.95
Cap/Depr(3y)127.65%
Cap/Depr(5y)106.14%
Cap/Sales(3y)2.06%
Cap/Sales(5y)1.7%
Profit Quality(3y)80.35%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.45%
EPS 3Y5.66%
EPS 5Y7.41%
EPS Q2Q%5.32%
EPS Next Y-5.43%
EPS Next 2Y2.06%
EPS Next 3Y4.34%
EPS Next 5Y5.45%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%4.86%
Revenue Next Year3.84%
Revenue Next 2Y3.75%
Revenue Next 3Y4.03%
Revenue Next 5Y3.33%
EBIT growth 1Y-11.35%
EBIT growth 3Y7.45%
EBIT growth 5Y7.37%
EBIT Next Year32.65%
EBIT Next 3Y14.72%
EBIT Next 5Y9.5%
FCF growth 1Y-84.46%
FCF growth 3Y-11.66%
FCF growth 5Y2.18%
OCF growth 1Y-48.98%
OCF growth 3Y-0.19%
OCF growth 5Y7%
GENUINE PARTS CO / GPC FAQ
What is the ChartMill fundamental rating of GENUINE PARTS CO (GPC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GPC.
What is the valuation status for GPC stock?
ChartMill assigns a valuation rating of 4 / 10 to GENUINE PARTS CO (GPC). This can be considered as Fairly Valued.
What is the profitability of GPC stock?
GENUINE PARTS CO (GPC) has a profitability rating of 7 / 10.
What are the PE and PB ratios of GENUINE PARTS CO (GPC) stock?
The Price/Earnings (PE) ratio for GENUINE PARTS CO (GPC) is 17.08 and the Price/Book (PB) ratio is 3.69.
Can you provide the dividend sustainability for GPC stock?
The dividend rating of GENUINE PARTS CO (GPC) is 6 / 10 and the dividend payout ratio is 69.77%.