GENUINE PARTS CO (GPC)
US3724601055 - Common Stock
GPC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Distributors industry. GPC scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, GPC is valued expensive at the moment. 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 6.88%, GPC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With an excellent Return On Equity value of 28.65%, GPC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.53%, GPC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GPC is in line with the industry average of 11.08%.
The last Return On Invested Capital (13.53%) for GPC is above the 3 year average (12.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 28.65% | ||
| ROIC | 13.53% |
ROA(3y)6.92%
ROA(5y)4.96%
ROE(3y)28.96%
ROE(5y)20.57%
ROIC(3y)12.69%
ROIC(5y)11.4%
1.3 Margins
GPC has a Profit Margin of 5.46%. This is comparable to the rest of the industry: GPC outperforms 58.33% of its industry peers.
GPC's Profit Margin has improved in the last couple of years.
The Operating Margin of GPC (7.53%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GPC has grown nicely.
GPC has a better Gross Margin (36.14%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of GPC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.53% | ||
| PM (TTM) | 5.46% | ||
| GM | 36.14% |
OM growth 3Y8.82%
OM growth 5Y4.23%
PM growth 3YN/A
PM growth 5Y3.45%
GM growth 3Y1.64%
GM growth 5Y1.83%
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.
The number of shares outstanding for GPC has been reduced compared to 1 year ago.
Compared to 5 years ago, GPC has less shares outstanding
GPC has a worse debt/assets ratio than last year.
2.2 Solvency
GPC has an Altman-Z score of 3.01. This indicates that GPC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GPC (3.01) is comparable to the rest of the industry.
The Debt to FCF ratio of GPC is 3.81, which is a good value as it means it would take GPC, 3.81 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.81, GPC is in line with its industry, outperforming 58.33% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that GPC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, GPC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.81 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.26
WACC10.7%
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 83.33% 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.
With a Quick ratio value of 0.59, GPC perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
GPC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.16%, which is quite good.
Measured over the past years, GPC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.40% on average per year.
The Revenue has been growing slightly by 2.40% in the past year.
GPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.53% yearly.
EPS 1Y (TTM)9.16%
EPS 3Y20.07%
EPS 5Y10.4%
EPS growth Q2Q3.74%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y11.77%
Revenue growth 5Y6.53%
Revenue growth Q2Q0.32%
3.2 Future
Based on estimates for the next years, GPC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.48% on average per year.
Based on estimates for the next years, GPC will show a small growth in Revenue. The Revenue will grow by 4.13% on average per year.
EPS Next Y5.86%
EPS Next 2Y7.07%
EPS Next 3Y6.84%
EPS Next 5Y9.48%
Revenue Next Year2.76%
Revenue Next 2Y3.59%
Revenue Next 3Y3.95%
Revenue Next 5Y4.13%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 17.07.
GPC's Price/Earnings ratio is in line with the industry average.
GPC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.25.
Based on the Price/Forward Earnings ratio of 15.01, the valuation of GPC can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GPC indicates a somewhat cheap valuation: GPC is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GPC to the average of the S&P500 Index (21.67), we can say GPC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.07 | ||
| Fwd PE | 15.01 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GPC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPC indicates a slightly more expensive valuation: GPC is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.03 | ||
| EV/EBITDA | 12.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GPC does not grow enough to justify the current Price/Earnings ratio.
GPC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.91
PEG (5Y)1.64
EPS Next 2Y7.07%
EPS Next 3Y6.84%
5. Dividend
5.1 Amount
GPC has a Yearly Dividend Yield of 2.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.67, GPC pays a better dividend. On top of this GPC pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, GPC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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 Years19
Div Non Decr Years19
5.3 Sustainability
42.26% of the earnings are spent on dividend by GPC. This is a bit on the high side, but may be sustainable.
GPC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP42.26%
EPS Next 2Y7.07%
EPS Next 3Y6.84%
GENUINE PARTS CO
NYSE:GPC (4/25/2024, 1:59:33 PM)
160.595
-1.21 (-0.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.39B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.07 | ||
| Fwd PE | 15.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.91
PEG (5Y)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 28.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.53% | ||
| PM (TTM) | 5.46% | ||
| GM | 36.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)9.16%
EPS 3Y20.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.4%
Revenue growth 3Y11.77%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y