GENUINE PARTS CO (GPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPC - US3724601055 - Common Stock
126.73 USD
+4.17 (+3.4%)
126.73 USD
0 (0%)
GPC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 industry peers in the Distributors industry. While GPC belongs to the best of the industry regarding profitability, there are concerns on its financial health. GPC has a valuation in line with the averages, but it does not seem to be growing. Finally GPC also has an excellent dividend rating.
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.
Each year in the past 5 years GPC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.91%, GPC is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
With a decent Return On Equity value of 16.89%, GPC is doing good in the industry, outperforming 76.19% of the companies in the same industry.
GPC's Return On Invested Capital of 8.91% is fine compared to the rest of the industry. GPC outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GPC is below the industry average of 15.42%.
| 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
Looking at the Profit Margin, with a value of 3.36%, GPC is in the better half of the industry, outperforming 66.67% 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 (5.94%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of GPC has remained more or less at the same level.
GPC has a Gross Margin of 37.03%. This is amongst the best in the industry. GPC outperforms 85.71% of its industry peers.
GPC's Gross Margin has improved in the last couple of years.
| 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
GPC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GPC has less shares outstanding than it did 1 year ago.
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
GPC has an Altman-Z score of 2.48. 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.
The Altman-Z score of GPC (2.48) is comparable to the rest of the industry.
GPC has a debt to FCF ratio of 35.64. This is a negative value and a sign of low solvency as GPC would need 35.64 years to pay back of all of its debts.
GPC has a Debt to FCF ratio of 35.64. This is comparable to the rest of the industry: GPC outperforms 47.62% of its industry peers.
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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 35.64 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.96
WACC9.27%
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.
The Current ratio of GPC (1.14) is worse than 66.67% of its industry peers.
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.
The Quick ratio of GPC (0.51) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for GPC have decreased strongly by -15.45% in the last year.
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 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 5.83% yearly.
Based on estimates for the next years, GPC will show a small growth in Revenue. The Revenue will grow by 3.58% on average per year.
EPS Next Y-5.49%
EPS Next 2Y2.11%
EPS Next 3Y4.29%
EPS Next 5Y5.83%
Revenue Next Year3.79%
Revenue Next 2Y3.71%
Revenue Next 3Y3.98%
Revenue Next 5Y3.58%
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
Based on the Price/Earnings ratio of 17.03, the valuation of GPC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GPC indicates a somewhat cheap valuation: GPC is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.00. GPC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.91, the valuation of GPC can be described as correct.
Based on the Price/Forward Earnings ratio, GPC is valued cheaper than 80.95% of the companies in the same industry.
GPC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 14.91 |
4.2 Price Multiples
61.90% of the companies in the same industry are more expensive than GPC, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as GPC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 132.03 | ||
| EV/EBITDA | 10.73 |
4.3 Compensation for Growth
GPC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.3
EPS Next 2Y2.11%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
GPC has a Yearly Dividend Yield of 3.35%.
GPC's Dividend Yield is rather good when compared to the industry average which is at 1.05. GPC pays more dividend than 85.71% of the companies in the same industry.
GPC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
The dividend of GPC has a limited annual growth rate of 5.74%.
GPC has been paying a dividend for at least 10 years, so it has 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
69.77% of the earnings are spent on dividend by GPC. This is not a sustainable payout ratio.
The dividend of GPC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP69.77%
EPS Next 2Y2.11%
EPS Next 3Y4.29%
126.73
+4.17 (+3.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners88.73%
Inst Owner Change0%
Ins Owners0.3%
Ins Owner Change4.72%
Market Cap17.63B
Revenue(TTM)24.06B
Net Income(TTM)808.50M
Analysts71.76
Price Target149.03 (17.6%)
Short Float %3.38%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend3.99
Dividend Growth(5Y)5.74%
DP69.77%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)0%
PT rev (3m)2.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 14.91 | ||
| P/S | 0.73 | ||
| P/FCF | 132.03 | ||
| P/OCF | 26.48 | ||
| P/B | 3.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.73 |
EPS(TTM)7.44
EY5.87%
EPS(NY)8.5
Fwd EY6.7%
FCF(TTM)0.96
FCFY0.76%
OCF(TTM)4.79
OCFY3.78%
SpS172.96
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 | 2.48 |
F-Score6
WACC9.27%
ROIC/WACC0.96
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-5.49%
EPS Next 2Y2.11%
EPS Next 3Y4.29%
EPS Next 5Y5.83%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.57%
Revenue growth 5Y6.03%
Sales Q2Q%4.86%
Revenue Next Year3.79%
Revenue Next 2Y3.71%
Revenue Next 3Y3.98%
Revenue Next 5Y3.58%
EBIT growth 1Y-11.35%
EBIT growth 3Y7.45%
EBIT growth 5Y7.37%
EBIT Next Year31.68%
EBIT Next 3Y15.16%
EBIT Next 5Y9.82%
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 of GENUINE PARTS CO (GPC) stock?
ChartMill assigns a valuation rating of 4 / 10 to GENUINE PARTS CO (GPC). This can be considered as Fairly Valued.
Can you provide the profitability details for GENUINE PARTS CO?
GENUINE PARTS CO (GPC) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for GPC stock?
The Earnings per Share (EPS) of GENUINE PARTS CO (GPC) is expected to decline by -5.49% in the next year.
How sustainable is the dividend of GENUINE PARTS CO (GPC) stock?
The dividend rating of GENUINE PARTS CO (GPC) is 7 / 10 and the dividend payout ratio is 69.77%.