Genuine Parts Company (GPC)
Consumer Discretionary · $17.2B market cap · SEC CIK 0000040987
ahead of 3% of the S&P 500 · #46 of 48 in Consumer Discretionary
Next reports on Feb 15, 2027, after the close, with analysts expecting $1.63 in earnings per share.
52-week range $90.78 to $151.57. 18% below its 52-week high and 37% above its low.
The case for GPC
- Moves less than the market (beta 0.64).
- Price/sales of 0.7× is lower than 87% of Consumer Discretionary companies.
The case against
- Expensive for its growth: 554.5× earnings, where 7% a year of growth would justify about 19×.
- Earnings per share down 95.7%.
- Operating profit covers its interest bill only 1.3 times.
- Return on equity of only 1%.
- Net margin of 0.1% leaves very little room for error.
- Long-term debt of $3.5B against $477M of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 10 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 32 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 20 |
| Momentumhow the price has behaved lately | 45 |
| Stabilityhow violently it moves, what it owes and what it pays you | 41 |
- Its dividend figures disagree with each other (a 2.8% yield against about 0.1% implied by its payout ratio and P/E), so the dividend is not counted.
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +5.3% |
|---|---|
| Over 5 years | +8.0% a year |
| FY2025 revenue | $24.3B (+3%) |
Free cash flow
Is it generating real cash? A little
| FY2025 free cash flow | $421M |
|---|---|
| Of revenue | 2% |
| Of profit | 638% |
Profit margins
Is profitability improving? No, slipping
| Gross margin | 37% |
|---|---|
| Operating margin | 1% |
| Net margin, FY24 → FY25 → now | 3.8% → 0.3% → 0.1% |
Debt vs. cash
Is the balance sheet healthy? Mostly, with some debt to carry
| Cash | $477M |
|---|---|
| Long-term debt | $3.5B |
| Net debt | $3.0B |
| Years to repay | 3.9 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 554.5× |
|---|---|
| Fair P/E for its growth | 19× |
| P/FCF | 40.9× |
| Forward P/E | 15.0× |
| EV / EBITDA | 28.9× |
At 554.5× earnings it trades well above the 19× that 7% a year of growth would justify. At 40.9× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Genuine Parts Company's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $24.3B | $23.5B | $23.1B | $22.1B | $18.9B |
| Change on the year | +3% | +2% | +5% | +17% | — |
| Free cash flow | |||||
| Free cash flow | $421M | $684M | $923M | $1.1B | $992M |
| Of revenue | 2% | 3% | 4% | 5% | 5% |
| Profit margins | |||||
| Gross margin | 36.8% | 36.3% | 35.9% | 35.0% | 35.2% |
| Net margin | 0.3% | 3.8% | 5.7% | 5.4% | 4.8% |
| Debt vs. cash | |||||
| Cash | $477M | $480M | $1.1B | $653M | $715M |
| Long-term debt | $3.5B | $3.7B | $3.6B | $3.1B | $2.4B |
| Net cash (debt) | −$3.0B | −$3.3B | −$2.4B | −$2.4B | −$1.7B |
What Genuine Parts Company says it does
Incorporated in the State of Georgia in 1928, Genuine Parts Company is a leading global service provider of automotive and industrial replacement parts and value-added solutions. We serve our customers from more than 10,800 locations, primarily in North America, Europe, and Australasia (primarily Australia and New Zealand). We offer outstanding service, an industry-leading assortment of replacement parts, extensive supply chain and distribution capabilities, and enhanced technology solutions. As used in this report, "we," "us," "our," "GPC," and the “company” refers to GPC and its subsidiaries, except as otherwise indicated by the context; and the terms “automotive parts” and “industrial parts” refer to replacement parts in each respective category. OUR BUSINESS We operate in the automotive aftermarket and industrial parts distribution industries. We are a global company focused on being a preferred employer, supplier, and partner…
Risk factors GPC lists in its 10-K
- Our business will be adversely affected if demand for our products slows
- Supply chain delays or interruptions, including as it relates to our dependence on our supplier relationships and the modernization of our supply chain, could harm our business
- Our results of operations, revenue, and supply chain could be materially affected as a result of a bankruptcy, insolvency or other credit failures of a significant customer or vendor
- We face substantial competition in the industries in which we do business
- Our dependence on key personnel and the increasing potential for union activity could adversely affect our future results and harm our business
- Changes in legislation or government regulations or policies, particularly those relating to international trade and taxation, could have a significant impact on our results of operations
- Fluctuations in foreign currency exchange rates have adversely affected and could continue to adversely affect our operating results
- Our debt levels could adversely affect our cash flow and prevent us from fulfilling our obligations
- We may be affected by global climate change or legal, tax, regulatory, or market responses to such change
- Because we are involved in litigation from time to time and are subject to numerous laws and governmental regulations, we could incur substantial judgments, fines, legal fees and other costs as well as reputational harm
- We are subject to risks related to corporate social responsibility and reputation
- Our stock price is subject to fluctuations, and the value of your investment may decline