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Genuine Parts Co GPC

Morningstar Rating
$149.21 −0.05 (0.03%)
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Company Report

Impressive Scale and Resilient End Markets Should Pave Way for Genuine Parts' Continued Growth

With a solid presence in the global automotive distribution industry that is cemented by its footprint of 9,800 affiliated stores, we believe Genuine Parts is well-positioned to continue serving its professional customer base in future years. About two thirds of Genuine’s automotive sales are derived from North America (primarily the United States) where we estimate the firm’s Napa Auto Parts brand boasts a mid-single-digit domestic share of the highly fragmented commercial automotive aftermarket. Given Genuine’s professional customer base tends to value the quick sourcing of necessary parts for sake of turning over service bays, the firm utilizes its distribution network to procure and deliver a vast assortment of automotive parts to its thousands of affiliated retail locations, allowing for ample local product availability. In turn, affiliated retail locations leverage the readily available inventory assortment to service time-sensitive customer demand. In our view, the firm stands to benefit from its established distribution system, strong supplier relationships, and an aging vehicle fleet for the foreseeable future. However, growing electric vehicle adoption could pose a threat to its long-term competitive standing.

Price vs Fair Value

GPC is trading at a 2% premium.
Price
$149.21
Fair Value
$544.00
Uncertainty
Medium
1-Star Price
$228.60
5-Star Price
$658.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The aging US 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
$149.26
Day Range
$147.79149.49
52-Week Range
$126.35174.91
Bid/Ask
$148.52 / $149.53
Market Cap
$20.80 Bil
Volume/Avg
1.1 Mil / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
16.36
Price/Sales
0.91
Dividend Yield (Trailing)
2.58%
Dividend Yield (Forward)
2.68%
Total Yield
3.84%

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 9,800 global retail locations of which about two thirds are independently owned and operated. We estimate Genuine serves around 6,000 retail locations in the US 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
60,000

Competitors

Valuation

Metric
GPC
AZO
GWW
Price/Earnings (Normalized)
16.3621.1926.81
Price/Book Value
4.7315.53
Price/Sales
0.913.132.98
Price/Cash Flow
12.2018.2421.50
Price/Earnings
GPC
AZO
GWW

Financial Strength

Metric
GPC
AZO
GWW
Quick Ratio
0.420.091.56
Current Ratio
1.230.792.88
Interest Coverage
28.0310.2227.88
Quick Ratio
GPC
AZO
GWW

Profitability

Metric
GPC
AZO
GWW
Return on Assets (Normalized)
7.71%16.89%23.29%
Return on Equity (Normalized)
32.31%64.65%
Return on Invested Capital (Normalized)
16.16%47.36%32.58%
Return on Assets
GPC
AZO
GWW
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