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.

Rewards

Trading at 14.1% below its fair value

Earnings are forecast to grow 6.5% per year

Earnings grew by 9.1% over the past year

Pays a high and reliable dividend of 2.88%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Outstanding track record established dividend payer.


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

2.7%

GPC

0.9%

US Retail Distributors

0.8%

US Market


1 Year Return

5.6%

GPC

18.4%

US Retail Distributors

17.8%

US Market

Return vs Industry: GPC underperformed the US Retail Distributors industry which returned 18.4% over the past year.

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


Shareholder returns

GPCIndustryMarket
7 Day2.7%0.9%0.8%
30 Day1.0%-0.5%1.8%
90 Day7.1%2.0%4.1%
1 Year8.9%5.6%20.4%18.4%20.4%17.8%
3 Year17.9%7.7%22.7%16.9%45.9%36.4%
5 Year15.9%0.2%38.7%27.5%68.1%49.6%

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?

14.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GPC ($105.73) is trading below our estimate of fair value ($123.15)

Significantly Below Fair Value: GPC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GPC is poor value based on its PE Ratio (19.3x) compared to the Retail Distributors industry average (18x).

PE vs Market: GPC is poor value based on its PE Ratio (19.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: GPC is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: GPC is overvalued based on its PB Ratio (4.2x) compared to the US Retail Distributors industry average (2.3x).


Next Steps

Future Growth

How is Genuine Parts forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPC's forecast earnings growth (6.5% per year) is above the savings rate (1.7%).

Earnings vs Market: GPC's earnings (6.5% per year) are forecast to grow slower 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 (2.4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: GPC's revenue (2.4% 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 (22.5%)


Next Steps

Past Performance

How has Genuine Parts performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPC has high quality earnings.

Growing Profit Margin: GPC's current net profit margins (4.1%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: GPC's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: GPC's earnings growth over the past year (9.1%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: GPC earnings growth over the past year (9.1%) exceeded the Retail Distributors industry -8.3%.


Return on Equity

High ROE: GPC's Return on Equity (21.8%) is considered high.


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 ($8.1B) exceed its short term liabilities ($6.4B).

Long Term Liabilities: GPC's short term assets ($8.1B) exceed its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: GPC's debt to equity ratio (94.1%) is considered high.

Reducing Debt: GPC's debt to equity ratio has increased from 22.8% to 94.1% over the past 5 years.

Debt Coverage: GPC's debt is well covered by operating cash flow (28%).

Interest Coverage: GPC's interest payments on its debt are well covered by EBIT (12.6x 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 2.3x debt).


Next Steps

Dividend

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

2.88%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: GPC's dividend (2.88%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: GPC's dividend (2.88%) is low compared to the top 25% of dividend payers in the US market (3.72%).


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 (55%), 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 (55.1% payout ratio).


Next Steps

Management

What is the CEO of Genuine Parts's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Paul Donahue (62yo)

3.6yrs

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 ($USD5.30M) is below average for companies of similar size in the US market ($USD10.94M).

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


Management Age and Tenure

4.3yrs

Average Tenure

57yo

Average Age

Experienced Management: GPC's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

66.5yo

Average Age

Experienced Board: GPC's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

Insider Buying: GPC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$107,22007 Nov 19
Randall Breaux
EntityIndividual
Shares1,000
Max PriceUS$107.22
BuyUS$495,05009 May 19
Scott Sonnemaker
EntityIndividual
Shares5,000
Max PriceUS$99.01

Ownership Breakdown

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


Management Team

  • Greg Miller (56yo)

    Executive VP & Chief Information Officer

    • Tenure: 3.8yrs
  • Carol Yancey (55yo)

    Executive VP

    • Tenure: 6.8yrs
    • Compensation: US$2.15m
  • Mike Orr (57yo)

    Senior Vice President of Operations & Logistics

    • Tenure: 10.3yrs
  • Scott Smith (58yo)

    Senior VP & General Counsel

    • Tenure: 0yrs
  • Paul Donahue (62yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$5.30m
  • Treg Brown

    Senior Vice President of Planning & Acquisitions

    • Tenure: 7.9yrs
  • Sid Jones

    Senior Vice President of Investor Relations

    • Tenure: 2.7yrs
  • Jim Neill (57yo)

    Senior Vice President of Human Resources

    • Tenure: 5.7yrs
    • Compensation: US$1.08m
  • Robert Swann

    Vice President of Internal Audit

    • Tenure: 4.3yrs
  • Lee Maher (63yo)

    Executive Vice President of U.S. Automotive Parts Group

    • Tenure: 1.3yrs
    • Compensation: US$1.61m

Board Members

  • Gary Fayard (67yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$259.86k
  • Johnny Johns (67yo)

    Lead Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$294.86k
  • Robin Loudermilk (59yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$259.86k
  • Tom Gallagher (71yo)

    Director

    • Tenure: 29.9yrs
    • Compensation: US$555.86k
  • E. Wood (68yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$268.86k
  • John Holder (64yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$257.36k
  • Wendy Needham (66yo)

    Independent Director

    • Tenure: 16.1yrs
    • Compensation: US$279.86k
  • William Turnbull

    Chairman of Balkamp Inc

    • Tenure: 0yrs
  • R. James

    Chairman of Eis Inc and Director of Eis Inc

    • Tenure: 0yrs
  • Paul Donahue (62yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$5.30m

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$15.362b
  • Shares outstanding: 145.29m
  • 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

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 Pu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 23:38
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.