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Genuine Parts Co GPC

Morningstar Rating
$145.73 +1.25 (0.87%)
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Company Report

Genuine Parts Earnings: Weakness in U.S. Automotive Weighs on an Otherwise Decent Quarter

Narrow-moat Genuine Parts delivered fiscal fourth-quarter results that mostly fell in line with our expectations, though continued strength in industrial distribution was partially offset by weaker-than-expected performance in its domestic automotive business. Still, we do not expect to materially alter our $146 fair value estimate and note that shares currently trade in fairly valued territory.

Price vs Fair Value

GPC is trading at a 1% discount.
Price
$144.46
Fair Value
$193.00
Uncertainty
Medium
1-Star Price
$474.20
5-Star Price
$148.40
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The aging U.S. vehicle fleet serves as a catalyst for underlying auto parts demand, driving growth in Genuine’s automotive segment.

Bears

A growing electric vehicle fleet poses a long-term threat to the auto parts industry as demand for internal combustion engine components abates.

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News

Trading Information

Previous Close Price
$144.48
Day Range
$144.39146.26
52-Week Range
$126.35181.28
Bid/Ask
$145.69 / $145.81
Market Cap
$20.34 Bil
Volume/Avg
201,955 / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
15.79
Price/Sales
0.88
Dividend Yield (Trailing)
2.63%
Dividend Yield (Forward)
2.77%
Total Yield
3.93%

Company Profile

Genuine Parts sells aftermarket automotive parts (about 60% of sales) and industrial products (40% of sales) in the United States and internationally. The automotive segment primarily acts as a distributor to its network of nearly 9,700 global retail locations of which about two thirds are independently owned and operated. We estimate Genuine serves around 6,000 retail locations in the U.S. operating under the Napa Auto Parts brand, with about 80% of sales geared toward professional customers. Its industrial segment, primarily operating under the Motion banner in the United States, serves as a leading distributor of bearings, power transmission, and other industrial products to over 200,000 maintenance, repair, and original equipment manufacturer clients.
Sector
Consumer Cyclical
Industry
Specialty Retail
Stock Style Box
Mid Core
Total Number of Employees
58,000

Competitors

Valuation

Metric
GPC
ORLY
AZO
Price/Earnings (Normalized)
15.7927.6619.79
Price/Book Value
4.83
Price/Sales
0.884.052.89
Price/Cash Flow
12.2822.5516.38
Price/Earnings
GPC
ORLY
AZO

Financial Strength

Metric
GPC
ORLY
AZO
Quick Ratio
0.390.080.09
Current Ratio
1.160.690.79
Interest Coverage
26.6716.8310.22
Quick Ratio
GPC
ORLY
AZO

Profitability

Metric
GPC
ORLY
AZO
Return on Assets (Normalized)
7.71%18.14%16.89%
Return on Equity (Normalized)
32.87%
Return on Invested Capital (Normalized)
16.48%45.28%47.36%
Return on Assets
GPC
ORLY
AZO
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Economic Moat
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AZO
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ULTA
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BBY
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BBWI
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RH
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