NYSE:GPC

Stock Analysis Report

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Executive Summary

Genuine Parts Company distributes automotive replacement parts, industrial parts and materials, and business products in the United States, Canada, Mexico, Australasia, France, the United Kingdom, Germany, Poland, the Netherlands, and Belgium. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet and pays a dividend.


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

-2.1%

GPC

-2.1%

US Retail Distributors

-0.8%

US Market


1 Year Return

-3.6%

GPC

11.7%

US Retail Distributors

18.0%

US Market

Return vs Industry: GPC underperformed the US Retail Distributors industry which returned 14.2% over the past year.

Return vs Market: GPC underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

GPCIndustryMarket
7 Day-2.1%-2.1%-0.8%
30 Day4.3%8.6%6.8%
90 Day11.4%12.6%8.9%
1 Year-0.4%-3.6%13.6%11.7%20.7%18.0%
3 Year22.7%11.8%34.5%28.5%41.5%32.1%
5 Year26.4%8.8%31.2%22.8%84.6%63.8%

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?

579.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GPC ($96.78) is trading above our estimate of fair value ($89.97)

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 (567.7x) compared to the US Retail Distributors industry average (21.9x).

PE vs Market: GPC is poor value based on its PE Ratio (567.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: GPC is poor value based on its PEG Ratio (18.1x)


Price to Book Ratio

PB vs Industry: GPC is overvalued based on its PB Ratio (4.9x) compared to the US Retail Distributors industry average (3.2x).


Next Steps

Future Growth

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

36.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPC's forecast earnings growth (31.3% per year) is above the savings rate (2.2%).

Earnings vs Market: GPC's earnings (31.3% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GPC's revenue (2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: GPC's revenue (2% 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 (23.8%)


Next Steps

Past Performance

How has Genuine Parts performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPC has a large one-off loss of $734.0M impacting its June 30 2020 financial results.

Growing Profit Margin: GPC's current net profit margins (0.1%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: GPC's earnings have declined by 5.3% 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 (-96.8%) over the past year, making it difficult to compare to the Retail Distributors industry average (9.3%).


Return on Equity

High ROE: GPC's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is Genuine Parts's financial position?


Financial Position Analysis

Short Term Liabilities: GPC's short term assets ($7.3B) exceed its short term liabilities ($6.0B).

Long Term Liabilities: GPC's short term assets ($7.3B) exceed its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: GPC's debt to equity ratio (102.6%) is considered high.

Reducing Debt: GPC's debt to equity ratio has increased from 24.8% to 102.6% over the past 5 years.

Debt Coverage: GPC's debt is well covered by operating cash flow (52.4%).

Interest Coverage: GPC's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet


Next Steps

Dividend

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

3.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GPC's dividend (3.27%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: GPC's dividend (3.27%) is low compared to the top 25% of dividend payers in the US market (4.67%).


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 high payout ratio (1821.4%), GPC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GPC's dividends in 3 years are forecast to be covered by earnings (55.4% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Paul Donahue (63 yo)

4.42yrs

Tenure

US$8,169,948

Compensation

Mr. Paul D. Donahue serves as Director at Truist Financial Corporation since December 6, 2019. Mr. Donahue has been the Chief Executive Officer of Genuine Parts Company since May 1, 2016 and served as its ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD8.17M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Paul's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Donahue
Chairman & CEO4.42yrsUS$8.17m0.056%
$ 8.0m
Carol Yancey
Executive VP7.58yrsUS$3.47m0.030%
$ 4.2m
James Neill
Executive VP & Chief Human Resources Officer6.5yrsUS$1.49m0.0056%
$ 802.3k
Kevin Herron
President of the U.S. Automotive Parts Group1.75yrsUS$2.09m0.0083%
$ 1.2m
Randall Breaux
President of Motion Industries1.75yrsUS$1.69m0.0015%
$ 216.6k
Michael Orr
Senior Vice President of Operations & Logistics11.17yrsno datano data
Gregory Miller
Executive VP & Chief Information Officer4.67yrsno datano data
Sidney Jones
Senior Vice President of Investor Relations3.5yrsno datano data
Scott Smith
Senior VP & General Counselno datano datano data
Jennifer Ellis
VP of Compliance & Corporate Secretary0.67yrno datano data
Treg Brown
Executive Vice President of Mergers & Acquisitions8.75yrsno datano data
Napoleon Rutledge
Senior Vice President of Finance2.67yrsno datano data

4.4yrs

Average Tenure

57.5yo

Average Age

Experienced Management: GPC's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Donahue
Chairman & CEO4.42yrsUS$8.17m0.056%
$ 8.0m
Gary Fayard
Independent Director6.75yrsUS$261.81k0.0024%
$ 340.6k
John Johns
Lead Independent Director3.5yrsUS$304.81k0.0098%
$ 1.4m
Robert Loudermilk
Independent Director10.17yrsUS$261.81k0.015%
$ 2.1m
E. Wood
Independent Director6.17yrsUS$273.81k0.0023%
$ 322.1k
Paul Hardin
Independent Director3.17yrsUS$261.81kno data
John Holder
Independent Director9.67yrsUS$261.81k0.0073%
$ 1.0m
Elizabeth Camp
Independent Director5.17yrsUS$259.81k0.00035%
$ 49.9k
Wendy Needham
Independent Director16.92yrsUS$284.81k0.0088%
$ 1.3m
William Turnbull
Chairman of Balkamp Incno datano datano data
R. James
Chairman of Eis Inc and Director of Eis Incno datano datano data
Donna Hyland
Independent Director4.92yrsUS$261.81kno data

5.7yrs

Average Tenure

66yo

Average Age

Experienced Board: GPC's board of directors are considered experienced (5.7 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$14.250b
  • Shares outstanding: 144.26m
  • 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 parts, industrial parts and materials, and business products in the United States, Canada, Mexico, Australasia, France, the United Kingdom, Germany, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 23:30
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
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.