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

Fundamentals

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


Market Performance


7 Day Return

1.0%

NYSE:GPC

0.5%

US Retail Distributors

2.9%

US Market


1 Year Return

-9.5%

NYSE:GPC

-6.2%

US Retail Distributors

0.2%

US Market

GPC underperformed the Retail Distributors industry which returned -7% over the past year.

GPC underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

GPCIndustryMarket
7 Day1.0%0.5%2.9%
30 Day-6.2%-0.9%-2.3%
90 Day-8.6%-3.0%3.1%
1 Year-6.9%-9.5%-4.7%-6.2%2.4%0.2%
3 Year-6.1%-14.0%-13.7%-17.1%41.7%32.4%
5 Year17.8%2.3%28.4%19.0%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

16.6x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Genuine Parts's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Genuine Parts's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Genuine Parts is good value based on earnings compared to the US Retail Distributors industry average.

Genuine Parts is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Genuine Parts is poor value based on expected growth next year.


Price Based on Value of Assets

Genuine Parts is overvalued based on assets compared to the US Retail Distributors industry average.


Next Steps

Future Growth

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

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Genuine Parts's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

Genuine Parts's earnings are expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).

Genuine Parts's revenue growth is positive but not above the United States of America market average.

Genuine Parts's earnings growth is positive but not above the United States of America market average.

Genuine Parts's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Genuine Parts will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Genuine Parts performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Genuine Parts's year on year earnings growth rate has been positive over the past 5 years.

Genuine Parts's 1-year earnings growth exceeds its 5-year average (18.1% vs 1.3%)

Genuine Parts's earnings growth has exceeded the US Retail Distributors industry average in the past year (18.1% vs 17.9%).


Return on Equity

Whilst Genuine Parts has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Genuine Parts used its assets less efficiently than the US Retail Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Genuine Parts's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Genuine Parts's financial position?


Financial Position Analysis

Genuine Parts is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Genuine Parts's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Genuine Parts's level of debt (105.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (21.8% vs 105.3% today).

Debt is well covered by operating cash flow (25.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 13.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

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

3.49%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Genuine Parts's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Genuine Parts's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Paul Donahue (62yo)

3.3yrs

Tenure

US$5,300,329

Compensation

Mr. Paul D. Donahue has been the Chief Executive Officer and President of Genuine Parts Company since May 1, 2016 and January 1, 2012 respectively and served as its Executive Vice President from August 20, ...


CEO Compensation Analysis

Paul's remuneration is lower than average for companies of similar size in United States of America.

Paul's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

57yo

Average Age

The tenure for the Genuine Parts management team is about average.


Board Age and Tenure

7.0yrs

Average Tenure

66.5yo

Average Age

The tenure for the Genuine Parts board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$495,05009 May 19
Scott Sonnemaker
EntityIndividual
Shares5,000
Max PriceUS$99.01
BuyUS$50,40526 Nov 18
John Holder
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$100.81

Ownership Breakdown


Management Team

  • Greg Miller (56yo)

    Executive VP & Chief Information Officer

    • Tenure: 3.5yrs
  • Carol Yancey (55yo)

    Executive VP

    • Tenure: 6.4yrs
    • Compensation: US$2.15m
  • Mike Orr (57yo)

    Senior Vice President of Operations & Logistics

    • Tenure: 10.0yrs
  • Scott Smith (58yo)

    Senior VP & General Counsel

    • Tenure: 0.0yrs
  • Paul Donahue (62yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$5.30m
  • Treg Brown

    Senior Vice President of Planning & Acquisitions

    • Tenure: 7.6yrs
  • Sid Jones

    Senior Vice President of Investor Relations

    • Tenure: 2.3yrs
  • Jim Neill (57yo)

    Senior Vice President of Human Resources

    • Tenure: 5.3yrs
    • Compensation: US$1.08m
  • Robert Swann

    Vice President of Internal Audit

    • Tenure: 4.0yrs
  • Lee Maher (63yo)

    Executive Vice President of U.S. Automotive Parts Group

    • Tenure: 1.0yrs
    • Compensation: US$1.61m

Board Members

  • Gary Fayard (67yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$259.86k
  • Johnny Johns (67yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$294.86k
  • Robin Loudermilk (59yo)

    Independent Director

    • Tenure: 9.0yrs
    • Compensation: US$259.86k
  • Tom Gallagher (71yo)

    Director

    • Tenure: 29.6yrs
    • Compensation: US$555.86k
  • E. Wood (68yo)

    Independent Director

    • Tenure: 5.0yrs
    • Compensation: US$268.86k
  • John Holder (64yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$257.36k
  • Wendy Needham (66yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$279.86k
  • William Turnbull

    Chairman of Balkamp Inc

    • Tenure: 0.0yrs
  • R. James

    Chairman of Eis Inc and Director of Eis Inc

    • Tenure: 0.0yrs
  • Paul Donahue (62yo)

    President

    • Tenure: 3.3yrs
    • 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$13.124b
  • Shares outstanding: 146.08m
  • 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 Analysis2019/08/21 23:36
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
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.