Genuine Parts Co (GPC) stock analysis

P/E above its 5-year median

Genuine Parts's P/E of 476.0 is above its own 5-year median of 20.2.

P/E above the industry

Genuine Parts's P/E of 476.0 is above the Wholesale Trade-durable Goods median of 20.3.

EV/EBITDA above its 5-year median

Genuine Parts's EV/EBITDA of 38.0 is above its 5-year median of 13.1.

P/B above the industry

Genuine Parts's price-to-book of 3.67 is above the Wholesale Trade-durable Goods median of 2.15.

Trading above fair value

The share price of $123.75 is above our fair value estimate of $48.15.

Margin of safety under 20%

The price is 157% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -61.6% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 5.3% over the last twelve months; the Wholesale Trade-durable Goods median is 8.4%.

Guidance raised

Genuine Parts raised its For the Year Ending December 31, 2026 International Automotive sales growth outlook on Apr 21, 2026.

Gross margin improving

Gross margin was 37.1% over the last twelve months, against 37.0% a year earlier.

Return on equity under 15%

Return on equity was 0.7% over the last twelve months and averaged 22.7% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity below the industry

Genuine Parts's return on equity of 0.7% is below the Wholesale Trade-durable Goods median of 7.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 0.1% over the last twelve months, against a 5-year average of 4.0%.

Net margin below the industry

Genuine Parts's net margin of 0.1% is below the Wholesale Trade-durable Goods median of 1.9%.

High debt

Debt is 110% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 83.5% five years ago to 110%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 23.4% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.22 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.21; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Genuine Parts paid dividends worth 3.4% of the share price over the last twelve months.

Yield below Treasuries

The 3.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Genuine Parts yields 3.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Not covered by earnings

Dividends take 1861% of net income, leaving little room.

Covered by free cash flow

Dividends take 75.7% of free cash flow.