GENUINE PARTS CO (GPC) Stock Fundamental Analysis
NYSE:GPC - US3724601055 - Common Stock
139.33 USD
+0.02 (+0.01%)
139.887 USD
+0.56 (+0.4%)
Overall GPC gets a fundamental rating of 4 out of 10. We evaluated GPC against 22 industry peers in the Distributors industry. GPC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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 3.96% is in line compared to the rest of the industry. GPC outperforms 59.09% of its industry peers.
GPC has a Return On Equity of 17.20%. This is in the better half of the industry: GPC outperforms 77.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.71%, GPC is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GPC is below the industry average of 15.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 17.2% | ||
| ROIC | 8.71% |
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 3.40%, GPC is doing good in the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Profit Margin of GPC has grown nicely.
The Operating Margin of GPC (5.85%) is better than 68.18% of its industry peers.
GPC's Operating Margin has been stable in the last couple of years.
GPC has a Gross Margin of 36.88%. This is in the better half of the industry: GPC outperforms 77.27% of its industry peers.
GPC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | 3.4% | ||
| GM | 36.88% |
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.
Compared to 1 year ago, GPC has less shares outstanding
Compared to 5 years ago, GPC has less shares outstanding
GPC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.57 indicates that GPC is not a great score, but indicates only limited risk for bankruptcy at the moment.
GPC has a worse Altman-Z score (2.57) than 63.64% of its industry peers.
The Debt to FCF ratio of GPC is 19.11, which is on the high side as it means it would take GPC, 19.11 years of fcf income to pay off all of its debts.
GPC's Debt to FCF ratio of 19.11 is on the low side compared to the rest of the industry. GPC is outperformed by 63.64% of its industry peers.
GPC has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
GPC has a Debt to Equity ratio of 1.00. This is in the lower half of the industry: GPC underperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 19.11 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.89
WACC9.74%
2.3 Liquidity
A Current Ratio of 1.14 indicates that GPC should not have too much problems paying 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 77.27% of its industry peers.
A Quick Ratio of 0.51 indicates that GPC may have some problems paying its short term obligations.
GPC's Quick ratio of 0.51 is on the low side compared to the rest of the industry. GPC is outperformed by 77.27% 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 -22.00%.
GPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.41% yearly.
The Revenue has been growing slightly by 2.65% in the past year.
Measured over the past years, GPC shows a small growth in Revenue. The Revenue has been growing by 6.03% on average per year.
EPS 1Y (TTM)-22%
EPS 3Y5.66%
EPS 5Y7.41%
EPS Q2Q%-13.93%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%3.39%
3.2 Future
The Earnings Per Share is expected to grow by 5.45% on average over the next years.
The Revenue is expected to grow by 3.33% on average over the next years.
EPS Next Y-4.67%
EPS Next 2Y2.48%
EPS Next 3Y4.54%
EPS Next 5Y5.45%
Revenue Next Year2.79%
Revenue Next 2Y3.14%
Revenue Next 3Y3.54%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.98, GPC is valued on the expensive side.
GPC's Price/Earnings ratio is a bit cheaper when compared to the industry. GPC is cheaper than 72.73% of the companies in the same industry.
GPC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.28 indicates a correct valuation of GPC.
Based on the Price/Forward Earnings ratio, GPC is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GPC to the average of the S&P500 Index (22.76), we can say GPC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 16.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPC is valued a bit cheaper than 72.73% of the companies 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 | 77.04 | ||
| EV/EBITDA | 12.32 |
4.3 Compensation for Growth
The decent profitability rating of GPC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.56
EPS Next 2Y2.48%
EPS Next 3Y4.54%
5. Dividend
5.1 Amount
GPC has a Yearly Dividend Yield of 2.96%.
Compared to an average industry Dividend Yield of 2.67, GPC pays a better dividend. On top of this GPC pays more dividend than 86.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, GPC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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
GPC pays out 69.26% of its income as dividend. This is not a sustainable payout ratio.
GPC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP69.26%
EPS Next 2Y2.48%
EPS Next 3Y4.54%
139.33
+0.02 (+0.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners87.91%
Inst Owner Change1.49%
Ins Owners0.28%
Ins Owner Change0.49%
Market Cap19.38B
Analysts71.76
Price Target139.91 (0.42%)
Short Float %3.39%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend3.99
Dividend Growth(5Y)5.74%
DP69.26%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.89%
Min EPS beat(2)0.53%
Max EPS beat(2)3.26%
EPS beat(4)3
Avg EPS beat(4)-4.08%
Min EPS beat(4)-23.04%
Max EPS beat(4)3.26%
EPS beat(8)6
Avg EPS beat(8)-2.08%
EPS beat(12)10
Avg EPS beat(12)0.52%
EPS beat(16)14
Avg EPS beat(16)2.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-0.36%
Max Revenue beat(2)-0.2%
Revenue beat(4)0
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)-0.03%
Revenue beat(8)0
Avg Revenue beat(8)-1.21%
Revenue beat(12)3
Avg Revenue beat(12)-0.32%
Revenue beat(16)7
Avg Revenue beat(16)0.5%
PT rev (1m)4.55%
PT rev (3m)5.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.13%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 16.28 | ||
| P/S | 0.82 | ||
| P/FCF | 77.04 | ||
| P/OCF | 23.97 | ||
| P/B | 4.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.32 |
EPS(TTM)7.34
EY5.27%
EPS(NY)8.56
Fwd EY6.14%
FCF(TTM)1.81
FCFY1.3%
OCF(TTM)5.81
OCFY4.17%
SpS170.9
BVpS33.81
TBVpS-1.94
PEG (NY)N/A
PEG (5Y)2.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 17.2% | ||
| ROCE | 12.4% | ||
| ROIC | 8.71% | ||
| ROICexc | 9.05% | ||
| ROICexgc | 15.71% | ||
| OM | 5.85% | ||
| PM (TTM) | 3.4% | ||
| GM | 36.88% | ||
| FCFM | 1.06% |
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%
ROICexcg growth 3Y-6.02%
ROICexcg 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-Score5
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 19.11 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 121.97% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.75% | ||
| Profit Quality | 31.1% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 2.57 |
F-Score5
WACC9.74%
ROIC/WACC0.89
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)-22%
EPS 3Y5.66%
EPS 5Y7.41%
EPS Q2Q%-13.93%
EPS Next Y-4.67%
EPS Next 2Y2.48%
EPS Next 3Y4.54%
EPS Next 5Y5.45%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%3.39%
Revenue Next Year2.79%
Revenue Next 2Y3.14%
Revenue Next 3Y3.54%
Revenue Next 5Y3.33%
EBIT growth 1Y-18.87%
EBIT growth 3Y7.45%
EBIT growth 5Y7.37%
EBIT Next Year32.65%
EBIT Next 3Y14.81%
EBIT Next 5Y9.5%
FCF growth 1Y-66.06%
FCF growth 3Y-11.66%
FCF growth 5Y2.18%
OCF growth 1Y-28.65%
OCF growth 3Y-0.19%
OCF growth 5Y7%