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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 driven by resilient sales and margin expansion in the second quarter, despite near-term pressures. The company's industrial parts group showed a positive inflection, aided by digital initiatives and e-commerce growth. Additionally, the automotive segment's margin compression due to rising costs was offset by the company's tariff protections and steady M&A activity. The company's strong backlog and demand for infrastructural solutions also contributed to its performance. Furthermore, the company's international sales patterns and their implications on Wall Street's forecasts and the prospective trajectory of the stock are worth examining.

1.c. Company Highlights

2. Genuine Parts Company's Q3 2025 Earnings: A Strong Performance

Genuine Parts Company (GPC) reported total sales of $6.3 billion for the third quarter of 2025, representing a 5% increase from the same period last year. The company's gross margin expanded by 60 basis points, driven by strategic pricing, sourcing initiatives, and acquisitions. Adjusted EBITDA rose 10% year-over-year, with margin expansion in both Automotive and Industrial segments. Adjusted diluted earnings per share was $1.98, a 5% increase, slightly below analyst estimates of $2.02. The company's financial performance was characterized by solid revenue growth, moderated gross margin, and SG&A leverage.

Publication Date: Nov -25

📋 Highlights
  • Total Sales Growth:: Q3 2025 sales reached $6.3 billion, reflecting a 5% year-over-year increase driven by strong performance in both Automotive and Industrial segments.
  • Gross Margin Expansion:: Gross margin improved by 60 basis points due to pricing strategies, sourcing efficiencies, and acquisitions, contributing to a 10% rise in adjusted EBITDA.
  • Shareholder Returns:: $421 million returned to shareholders via dividends in the first nine months of 2025, alongside $160 million in free cash flow generation.
  • Strategic Acquisitions:: $182 million invested in strategic acquisitions (e.g., Benson in Canada) to enhance market position and operational scale.
  • 2025 Guidance Update:: Full-year diluted EPS projected at $6.55–$6.80, with sales growth of 3–4% and $1.1–$1.3 billion in operating cash flow expected.

Segment Performance

The Global Industrial segment saw sales of $2.3 billion, up 5% from the prior year, with comparable sales growth of approximately 4%. The Motion business continues to perform well, with emerging opportunities in onshoring and a data center initiative. In the Global Automotive segment, sales increased approximately 5%, with comparable sales growth of 2%. The U.S. Automotive business saw sales growth of 4%, with commercial customers up low- to mid-single digits and retail customers down low single digits.

Guidance and Outlook

GPC narrowed and updated its guidance range for 2025, with third-quarter results in line with expectations. For the full year 2025, the company expects diluted EPS of $6.55 to $6.80 and adjusted diluted EPS of $7.50 to $7.75. The outlook assumes total GPC sales growth of 3% to 4%, with Automotive segment sales growth of 4% to 5% and Industrial segment sales growth of 2% to 3%. The company's guidance suggests a continued focus on executing growth and productivity initiatives, managing costs, and investing in strategic areas.

Valuation and Dividend Yield

With a P/E Ratio of 21.77 and an EV/EBITDA of 14.08, GPC's valuation appears reasonable. The company's Dividend Yield of 3.23% is attractive, reflecting a commitment to returning value to shareholders. GPC has returned $421 million to shareholders through dividends in the first 9 months of 2025. Analysts estimate next year's revenue growth at 3.5%, which is in line with the company's long-term growth prospects.

Operational Highlights

GPC's CEO, Will Stengel, emphasized the company's focus on executing growth and productivity initiatives, managing costs, and investing in strategic areas. The company continues to invest in modernizing its supply chain and enhancing the customer experience through IT investments. It has invested $182 million in strategic acquisitions year-to-date, including the Benson acquisition in Canada.

3. NewsRoom

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Genuine Parts Company (NYSE:GPC) Receives Average Recommendation of “Moderate Buy” from Brokerages

Nov -27

Source: defenseworld.net

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Advisors Asset Management Inc. Has $7.31 Million Holdings in Genuine Parts Company $GPC

Nov -26

Source: defenseworld.net

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Genuine Parts Company $GPC Shares Sold by Avantax Advisory Services Inc.

Nov -21

Source: defenseworld.net

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Genuine Parts Company Declares Regular Quarterly Dividend

Nov -17

Source: prnewswire.com

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38,627 Shares in Genuine Parts Company $GPC Acquired by ABN Amro Investment Solutions

Nov -14

Source: defenseworld.net

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Seth Klarman's Strategic Moves: Union Pacific Corp Takes Center Stage with 7.43% Portfolio Share

Nov -13

Source: gurufocus.com

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Got $1,000? Here Are the Smartest Dividend Stocks to Start With.

Nov -10

Source: fool.com

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Genuine Parts Company (GPC) Presents at 49th Annual Automotive Symposium Transcript

Nov -04

Source: seekingalpha.com

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

129.22$

Current Price

129.22$

Potential

-0.00%

Expected Cash-Flows