GENUINE PARTS CO (GPC) Stock Fundamental Analysis
USA - NYSE:GPC - US3724601055 - Common Stock
127.26 USD
-0.47 (-0.37%)
127.26 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. GPC has an excellent profitability rating, but there are concerns on its financial health. GPC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GPC had positive earnings in the past year.
In the past year GPC had a positive cash flow from operations.
GPC had positive earnings in 4 of the past 5 years.
GPC had a positive operating cash flow in each of the past 5 years.
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.
GPC's Return On Equity of 16.89% is amongst the best of the industry. GPC outperforms 82.61% of its industry peers.
The Return On Invested Capital of GPC (8.91%) is better than 65.22% of its industry peers.
GPC had an Average Return On Invested Capital over the past 3 years of 12.44%. This is in line with the industry average of 14.04%.
| 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
With a decent Profit Margin value of 3.36%, GPC is doing good in the industry, outperforming 65.22% of the companies in the same industry.
GPC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.94%, GPC is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
In the last couple of years the Operating Margin of GPC has remained more or less at the same level.
GPC's Gross Margin of 37.03% is fine compared to the rest 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GPC is still creating some value.
GPC has less shares outstanding than it did 1 year ago.
GPC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GPC has a worse debt to assets ratio.
2.2 Solvency
GPC has an Altman-Z score of 2.51. This is not the best score and indicates that GPC is in the grey zone with still only limited risk for bankruptcy at the moment.
GPC has a Altman-Z score of 2.51. This is comparable to the rest of the industry: GPC outperforms 43.48% of its industry peers.
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.
GPC's Debt to FCF ratio of 35.64 is in line compared to the rest of the industry. GPC outperforms 47.83% of its industry peers.
A Debt/Equity ratio of 0.97 indicates that GPC is somewhat dependend on debt financing.
GPC has a Debt to Equity ratio of 0.97. This is in the lower half of the industry: GPC underperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 35.64 | ||
| Altman-Z | 2.51 |
ROIC/WACC1
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.14 indicates that GPC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, GPC is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
GPC has a Quick Ratio of 1.14. This is a bad value and indicates that GPC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.51, GPC is doing worse than 78.26% of the companies in the same industry.
| 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%.
Measured over the past 5 years, GPC shows a small growth in Earnings Per Share. The EPS has been growing by 7.41% on average per year.
The Revenue has been growing slightly by 3.26% in the past year.
GPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.03% yearly.
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
GPC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.45% yearly.
Based on estimates for the next years, GPC will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 17.10, which indicates a rather expensive current valuation of GPC.
Compared to the rest of the industry, the Price/Earnings ratio of GPC indicates a somewhat cheap valuation: GPC is cheaper than 73.91% of the companies listed in the same industry.
GPC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.99 indicates a correct valuation of GPC.
GPC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GPC is cheaper than 78.26% of the companies in the same industry.
GPC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GPC indicates a somewhat cheap valuation: GPC is cheaper than 69.57% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 132.57 | ||
| 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)2.31
EPS Next 2Y2.06%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
GPC has a Yearly Dividend Yield of 3.23%.
Compared to an average industry Dividend Yield of 3.39, GPC pays a better dividend. On top of this GPC pays more dividend than 86.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, GPC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.74%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
69.77% of the earnings are spent on dividend by GPC. This is not a sustainable payout ratio.
GPC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP69.77%
EPS Next 2Y2.06%
EPS Next 3Y4.34%
127.26
-0.47 (-0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners88.59%
Inst Owner Change-0.71%
Ins Owners0.3%
Ins Owner Change12.19%
Market Cap17.70B
Revenue(TTM)24.06B
Net Income(TTM)808.50M
Analysts70.59
Price Target147.48 (15.89%)
Short Float %3.88%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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)-0.61%
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 | 17.1 | ||
| Fwd PE | 14.99 | ||
| P/S | 0.74 | ||
| P/FCF | 132.57 | ||
| P/OCF | 26.59 | ||
| P/B | 3.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.07 |
EPS(TTM)7.44
EY5.85%
EPS(NY)8.49
Fwd EY6.67%
FCF(TTM)0.96
FCFY0.75%
OCF(TTM)4.79
OCFY3.76%
SpS172.99
BVpS34.41
TBVpS-1.41
PEG (NY)N/A
PEG (5Y)2.31
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
WACC8.93%
ROIC/WACC1
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 17.1 and the Price/Book (PB) ratio is 3.7.
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%.