NYSE:GPC

Stock Analysis Report

Executive Summary

Genuine Parts Company distributes automotive replacement, industrial parts and materials, and business products in North America, Australia, New Zealand, the United Kingdom, France, Germany, Poland, and Puerto Rico.


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Genuine Parts's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GPC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

GPC

-1.1%

US Retail Distributors

-1.0%

US Market


1 Year Return

-13.2%

GPC

4.8%

US Retail Distributors

18.0%

US Market

Return vs Industry: GPC underperformed the US Retail Distributors industry which returned 4.8% over the past year.

Return vs Market: GPC underperformed the US Market which returned 18% over the past year.


Shareholder returns

GPCIndustryMarket
7 Day-0.3%-1.1%-1.0%
30 Day-4.0%-3.6%0.6%
90 Day-7.2%-3.9%7.9%
1 Year-10.5%-13.2%6.6%4.8%20.4%18.0%
3 Year9.4%-0.04%18.3%12.8%48.0%38.5%
5 Year15.7%0.1%41.5%30.0%72.2%53.3%

Price Volatility Vs. Market

How volatile is Genuine Parts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Genuine Parts undervalued compared to its fair value and its price relative to the market?

22.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GPC ($96.21) is trading above our estimate of fair value ($94.9)

Significantly Below Fair Value: GPC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GPC is poor value based on its PE Ratio (22.6x) compared to the Retail Distributors industry average (19x).

PE vs Market: GPC is poor value based on its PE Ratio (22.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: GPC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: GPC is overvalued based on its PB Ratio (3.8x) compared to the US Retail Distributors industry average (2.9x).


Next Steps

Future Growth

How is Genuine Parts forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPC's forecast earnings growth (17.2% per year) is above the savings rate (1.7%).

Earnings vs Market: GPC's earnings (17.2% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: GPC's earnings are forecast to grow, but not significantly.

Revenue vs Market: GPC's revenue (1.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GPC's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GPC's Return on Equity is forecast to be high in 3 years time (22.9%)


Next Steps

Past Performance

How has Genuine Parts performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPC has a large one-off loss of $236.9M impacting its December 31 2019 financial results.

Growing Profit Margin: GPC's current net profit margins (3.2%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: GPC's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: GPC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GPC had negative earnings growth (-23.4%) over the past year, making it difficult to compare to the Retail Distributors industry average (-18.5%).


Return on Equity

High ROE: GPC's Return on Equity (16.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Genuine Parts's financial position?


Financial Position Analysis

Short Term Liabilities: GPC's short term assets ($7.9B) exceed its short term liabilities ($6.4B).

Long Term Liabilities: GPC's short term assets ($7.9B) exceed its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: GPC's debt to equity ratio (85.3%) is considered high.

Reducing Debt: GPC's debt to equity ratio has increased from 23.1% to 85.3% over the past 5 years.

Debt Coverage: GPC's debt is well covered by operating cash flow (28.3%).

Interest Coverage: GPC's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet

Inventory Level: GPC has a high level of physical assets or inventory.

Debt Coverage by Assets: GPC's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

What is Genuine Parts's current dividend yield, its reliability and sustainability?

3.28%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Genuine Parts before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: GPC's dividend (3.28%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: GPC's dividend (3.28%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: GPC's dividends per share have been stable in the past 10 years.

Growing Dividend: GPC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.6%), GPC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GPC's dividends in 3 years are forecast to be covered by earnings (59% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Paul Donahue (62yo)

3.8yrs

Tenure

US$5,300,329

Compensation

Mr. Paul D. Donahue serves as Director at Truist Financial Corporation. Mr. Donahue has been the Chief Executive Officer and President of Genuine Parts Company since May 1, 2016 and January 1, 2012 respect ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD5.30M) is below average for companies of similar size in the US market ($USD10.79M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Donahue
President3.8yrsUS$5.30m0.055% $8.0m
Carol Yancey
Executive VP6.9yrsUS$2.15m0.030% $4.3m
James Neill
Executive VP & Chief Human Resources Officer5.8yrsUS$1.08m0.0056% $809.5k
Lee Maher
Executive Vice President of U.S. Automotive Parts Group1.5yrsUS$1.61m0.037% $5.3m
Michael Orr
Senior Vice President of Operations & Logistics10.5yrsno datano data
Gregory Miller
Executive VP & Chief Information Officer4yrsno datano data
Sidney Jones
Senior Vice President of Investor Relations2.8yrsno datano data
Scott Smith
Senior VP & General Counsel0yrsno datano data
Jennifer Ellis
VP, Compliance & Corporate Secretary0yrsno datano data
Treg Brown
Executive Vice President of Mergers & Acquisitions8.1yrsno datano data

4.9yrs

Average Tenure

57yo

Average Age

Experienced Management: GPC's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Donahue
President3.8yrsUS$5.30m0.055% $8.0m
Gary Fayard
Independent Director6.1yrsUS$259.86k0.0011% $165.1k
John Johns
Lead Independent Director2.8yrsUS$294.86k0.0086% $1.2m
Robert Loudermilk
Independent Director9.5yrsUS$259.86k0.014% $2.0m
Thomas Gallagher
Director30.1yrsUS$555.86k0.43% $62.1m
E. Wood
Independent Director5.5yrsUS$268.86k0.0011% $159.3k
John Holder
Independent Director9yrsUS$257.36k0.0061% $883.3k
Wendy Needham
Independent Director16.3yrsUS$279.86k0.0075% $1.1m
William Turnbull
Chairman of Balkamp Inc0yrsno datano data
R. James
Chairman of Eis Inc and Director of Eis Inc0yrsno datano data

7.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: GPC's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Genuine Parts Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genuine Parts Company
  • Ticker: GPC
  • Exchange: NYSE
  • Founded: 1928
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: US$14.481b
  • Shares outstanding: 145.38m
  • Website: https://www.genpt.com

Number of Employees


Location

  • Genuine Parts Company
  • 2999 Wildwood Parkway
  • Atlanta
  • Georgia
  • 30339
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPCNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1968
GPTDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1968
0IUXLSE (London Stock Exchange)YesCommon StockGBUSDAug 1968
G1PC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Genuine Parts Company distributes automotive replacement, industrial parts and materials, and business products in North America, Australia, New Zealand, the United Kingdom, France, Germany, Poland, and Puerto Rico. The company distributes automotive replacement parts for imported vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, and heavy duty equipment; and accessory items for automotive aftermarket, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns, and individuals. It also distributes industrial replacement parts and related supplies, such as bearings, mechanical and electrical power transmission products, industrial automation products, hoses, hydraulic and pneumatic components, industrial and safety supplies, and material handling products for original equipment manufacturer, as well as maintenance, repair, and operation customers in equipment and machinery, food and beverage, forest product, primary metal, pulp and paper, mining, automotive, oil and gas, petrochemical, pharmaceutical, power generation, alternative energy, transportation, ports, and other industries, as well as for governments. In addition, the company provides a range of services and repairs comprising gearbox and fluid power assembly repair, process pump assembly and repair, hydraulic drive shaft repair, electrical panel assembly and repair, hose and gasket manufacture and assembly, and other services. Further, it distributes office furniture, technology products, general office and school supplies, cleaning, janitorial and breakroom supplies, safety and security items, healthcare products, and disposable food service products to resellers. The company was founded in 1928 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:32
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.