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1. Company Snapshot

1.a. Company Description

Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials.It operates through Automotive Parts Group and Industrial Parts Group segments.The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment, and heavy duty equipment; and accessory and supply items used by various automotive aftermarket customers, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns, and individuals.


It also distributes industrial replacement parts and related supplies, such as bearings, mechanical and electrical power transmission products, industrial automation and robotics, hoses, hydraulic and pneumatic components, industrial and safety supplies, and material handling products for original equipment manufacturer, as well as maintenance, repair, and operation customers in equipment and machinery, food and beverage, forest product, primary metal, pulp and paper, mining, automotive, oil and gas, petrochemical, pharmaceutical, power generation, alternative energy, governments, transportation, ports, and other industries.In addition, the company provides various services and repairs comprising gearbox and fluid power and process pump assembly and repair, hydraulic drive shaft repair, electrical panel assembly and repair, hose and gasket manufacture and assembly, and other value-added services.It operates in the United States, Canada, France, the United Kingdom, Ireland, Germany, Poland, the Netherlands, Belgium, Australia, New Zealand, Mexico, Indonesia, and Singapore.


The company was incorporated in 1928 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on GPC

Genuine Parts Company's recent performance was negatively impacted by several factors. The company's Q4 earnings miss, with earnings of $1.55 per share versus expectations of $1.79 per share, likely contributed to the decline. Additionally, several institutional investors, including Wealth Enhancement Advisory Services LLC, Anchor Capital Advisors LLC, and SG Americas Securities LLC, reduced their holdings in the company, with decreases of 27.6%, 92.6%, and 70.9%, respectively. Furthermore, cost pressures and weakness in Europe offset acquisitions and the 2026 growth outlook.

1.c. Company Highlights

2. Genuine Parts Company's Mixed 2025 Results and Ambitious 2026 Outlook

Genuine Parts Company reported a 4% increase in fourth-quarter sales, with adjusted gross margin expanding by 70 basis points. However, earnings fell short of expectations due to weaker sales in Europe and lower sales to independent owners in the U.S. NAPA business. The company's adjusted EBITDA margin increased 10 basis points to 7.6%. For the full year 2025, the company generated $890 million in cash from operations and $421 million in free cash flow. Despite a challenging environment, the company believes it performed in line or better than the market in 2025. The actual EPS came out at -$4.38794, significantly lower than estimates at $1.79.

Publication Date: Feb -18

📋 Highlights
  • Separation Plan:: Genuine Parts will split into two independent public companies by 2027, creating a dedicated automotive aftermarket and global industrial solutions platform.
  • 2025 Financials:: Generated $890M cash from operations and $421M free cash flow, with $470M invested in capital expenditures and $320M in M&A.
  • Segment Performance:: Industrial sales rose 2% to $8.9B; North America Automotive grew 3% (0.5% comp sales), while International Automotive sales increased 5%.
  • 2026 Guidance:: Adjusted EPS projected at $7.50–$8.00 (5% increase at midpoint), with EBITDA of $2.0B–$2.2B (2–9% growth) and $515M–$540M in CapEx/D&A.
  • Restructuring & Pricing:: $100M–$125M restructuring benefits split between segments, alongside 2–3% pricing gains from tariffs and inflation moderation.

Segment Performance

The Industrial segment reported total sales of $8.9 billion, an increase of $200 million or approximately 2% versus the same period in the prior year. The North America Automotive segment saw total sales increase by approximately 3%, with comparable sales growth up approximately 0.5%. International Automotive segment sales increased by approximately 5% with comparable sales up slightly. As Will Stengel mentioned, "We've made progress in our acquisition strategy in our U.S. Automotive business, acquiring over 100 locations from both independent owners and competitors."

2026 Outlook and Guidance

Genuine Parts Company expects diluted earnings per share to be in the range of $6.10 to $6.60 and adjusted diluted earnings per share to be in the range of $7.50 to $8.00, up 5% at the midpoint of the range versus 2025 adjusted EPS. The company expects consolidated adjusted EBITDA in 2026 to be in a range of $2.0 billion to $2.2 billion, an increase of 2% to 9% compared to the prior year. Analysts estimate next year's revenue growth at 4.3%, indicating a positive outlook.

Valuation and Metrics

With a P/E Ratio of 264.85, the stock appears to be overvalued relative to its earnings. However, the P/S Ratio of 0.72 and EV/EBITDA of 31.25 suggest that the market is pricing in a certain level of growth. The Dividend Yield of 3.28% is attractive for income investors. The ROE of 1.44% and ROIC of 8.62% indicate that the company is generating returns, although the ROE is relatively low.

3. NewsRoom

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We Highlighted 3 Undervalued Dividend Aristocrats a Year Ago: Here's How They Did and 3 New Picks

Apr -01

Source: 247wallst.com

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Genuine Parts Company to Report First Quarter 2026 Results on April 21, 2026

Mar -31

Source: prnewswire.com

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Dividend Kings on the Brink: Will These 2 Lose Their Crowns in 2026?

Mar -27

Source: 247wallst.com

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Best Dividend Aristocrats As Of March 20, 2026

Mar -21

Source: seekingalpha.com

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5 High-Yield Dividend Kings Down Over the Past Year Are 2026 Bargains

Mar -20

Source: 247wallst.com

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3 Dividend Aristocrat Stocks That Are Dirt Cheap Right Now

Mar -19

Source: 247wallst.com

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Genuine Parts Stock Down 15% YTD: Buy, Sell or Hold the Stock Now?

Mar -17

Source: zacks.com

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Cinctive Capital Management LP Invests $4.50 Million in Genuine Parts Company $GPC

Mar -16

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.95%)

6. Segments

Automotive

Expected Growth: 3.8%

Genuine Parts Company's 3.8% growth in Automotive segment is driven by increasing demand for replacement parts, growing average vehicle age, and rising miles driven. Additionally, the company's strategic acquisitions, expanded product offerings, and strong relationships with national accounts and independent repair shops contribute to the segment's growth.

Industrial

Expected Growth: 4.2%

Genuine Parts Company's Industrial segment growth of 4.2% is driven by increasing demand for industrial automation and maintenance, repair, and operations (MRO) products. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to the growth. Furthermore, the rising trend of industrial digitalization and the need for efficient supply chain management have also boosted the segment's performance.

7. Detailed Products

Automotive Replacement Parts

Genuine Parts Company provides a wide range of automotive replacement parts, including batteries, brakes, belts, hoses, and other components for vehicles.

Industrial Replacement Parts

The company offers industrial replacement parts, including bearings, power transmission products, and other components for industrial equipment and machinery.

Office and Business Products

Genuine Parts Company provides office and business products, including office supplies, furniture, and technology solutions.

Electrical and Electronic Materials

The company offers electrical and electronic materials, including electrical connectors, switches, and other components.

Motion Industries Industrial Solutions

Motion Industries, a subsidiary of Genuine Parts Company, provides industrial solutions, including bearings, power transmission products, and other industrial components.

8. Genuine Parts Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Genuine Parts Company is medium due to the availability of alternative products and services in the automotive aftermarket industry.

Bargaining Power Of Customers

The bargaining power of customers for Genuine Parts Company is low due to the company's strong brand reputation and wide distribution network.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Genuine Parts Company is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants for Genuine Parts Company is low due to the high barriers to entry in the automotive aftermarket industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Genuine Parts Company is high due to the presence of several established players in the automotive aftermarket industry, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.02%
Debt Cost 3.95%
Equity Weight 52.98%
Equity Cost 8.69%
WACC 6.46%
Leverage 88.76%

11. Quality Control: Genuine Parts Company passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

103.47$

Current Price

103.47$

Potential

-0.00%

Expected Cash-Flows