Genuine Parts Company
Genuine Parts Company Fundamental Analysis
Genuine Parts Company (GPC) shows weak financial fundamentals with a PE ratio of 247.95, profit margin of 0.27%, and ROE of 1.44%. The company generates $24.3B in annual revenue with weak year-over-year growth of 1.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 14.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GPC's fundamental strength across five key dimensions:
Efficiency Score
WeakGPC struggles to generate sufficient returns from assets.
Valuation Score
ModerateGPC shows balanced valuation metrics.
Growth Score
WeakGPC faces weak or negative growth trends.
Financial Health Score
ModerateGPC shows balanced financial health with some risks.
Profitability Score
ModerateGPC maintains healthy but balanced margins.
Key Financial Metrics
Is GPC Expensive or Cheap?
P/E Ratio
GPC trades at 247.95 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GPC's PEG of -2.70 indicates potential undervaluation.
Price to Book
The market values Genuine Parts Company at 3.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.41 times EBITDA. This is generally considered low.
How Well Does GPC Make Money?
Net Profit Margin
For every $100 in sales, Genuine Parts Company keeps $0.27 as profit after all expenses.
Operating Margin
Core operations generate 4.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.44 in profit for every $100 of shareholder equity.
ROA
Genuine Parts Company generates $0.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Genuine Parts Company generates limited operating cash flow of $892.09M, signaling weaker underlying cash strength.
Free Cash Flow
Genuine Parts Company generates weak or negative free cash flow of $421.55M, restricting financial flexibility.
FCF Per Share
Each share generates $3.03 in free cash annually.
FCF Yield
GPC converts 2.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
247.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How GPC Stacks Against Its Sector Peers
| Metric | GPC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 247.95 | 25.25 | Worse (Expensive) |
| ROE | 1.44% | 1170.00% | Weak |
| Net Margin | 0.27% | 742.00% | Weak |
| Debt/Equity | 1.87 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.08 | 9.19 | Neutral |
| ROA | 0.32% | -6467.00% (disorted) | Weak |
GPC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Genuine Parts Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.32%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
52.39%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
46.85%
Industry Style: Cyclical, Growth, Discretionary
High Growth