GPC

Cyclical

Genuine Parts Company

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2006–2025(20yr)

Revenue

Net Income

Free CF

Metric	FY 2006	FY 2007	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$10.5B	$10.8B	$11.0B	$10.1B	$11.2B	$12.5B	$13.0B	$14.1B	$15.3B	$15.3B	$15.3B	$16.3B	$18.7B	$19.4B	$16.5B	$18.9B	$22.1B	$23.1B	$23.5B	$24.3B	+3.5%
Gross Profit	—	$3.2B	$3.3B	$3.0B	$3.3B	$3.6B	$3.8B	$4.2B	$4.6B	$4.6B	$4.6B	$4.9B	$6.0B	$6.3B	$5.7B	$6.6B	$7.7B	$8.3B	$8.5B	$8.9B	+4.9%
Gross Margin	—	29.7%	29.7%	29.9%	29.0%	28.9%	29.0%	30.0%	29.9%	29.8%	30.0%	30.1%	31.9%	32.6%	34.2%	35.2%	35.0%	35.9%	36.3%	36.8%	+0.5pp
Operating Income	—	$882.2M	$860.9M	$701.7M	$839.4M	$980.2M	$1.1B	$1.1B	$1.3B	$1.3B	$1.2B	$1.3B	$1.4B	—	—	—	—	—	—	—	—
Operating Margin	—	8.1%	7.8%	7.0%	7.5%	7.9%	8.3%	8.0%	8.3%	8.4%	8.0%	7.7%	7.6%	—	—	—	—	—	—	—	—
Net Income	—	$506.3M	$475.4M	$399.6M	$475.5M	$565.1M	$648.0M	$685.0M	$711.3M	$705.7M	$687.2M	$616.8M	$810.5M	$621.1M	-$29.1M	$898.8M	$1.2B	$1.3B	$904.1M	$65.9M	-92.7%
Net Margin	—	4.7%	4.3%	4.0%	4.2%	4.5%	5.0%	4.9%	4.6%	4.6%	4.5%	3.8%	4.3%	3.2%	-0.2%	4.8%	5.4%	5.7%	3.8%	0.3%	-3.6pp
Free Cash Flow	—	$525.8M	$425.3M	$775.9M	$593.3M	$521.5M	$804.5M	$932.7M	—	—	$785.4M	$658.3M	$912.7M	$594.1M	—	$992.1M	$1.1B	$922.9M	$683.9M	$420.9M	-38.5%
FCF Margin	—	4.8%	3.9%	7.7%	5.3%	4.2%	6.2%	6.6%	—	—	5.1%	4.0%	4.9%	3.1%	—	5.3%	5.1%	4.0%	2.9%	1.7%	-1.2pp
EPS (Diluted)	—	$2.98	$2.92	$2.50	$3.00	$3.58	$4.14	$4.40	$4.61	$4.63	$4.59	$4.18	$5.50	$4.24	$-0.20	$6.23	$8.31	$9.33	$6.47	$0.47	-92.7%

Total Debt$4.8B

Cash & Equiv.$333.5M

Net Debt$4.5B

4 min read

1. THE BIG PICTURE

Genuine Parts Company is no longer the stable, predictable distributor it once was; it is a business in the midst of a radical structural overhaul. While management attempts to unlock value by splitting Genuine Parts Company in two by 2027, the operational engine is sputtering, evidenced by a swing from a $133 million profit to a $609 million net loss in the most recent quarter (8-K). Genuine Parts Company is essentially racing to separate its high-performing industrial segment before the headwinds in the automotive aftermarket—inflation, vendor failures, and intense competition—pull the entire valuation down.

2. WHERE THE RISKS HIT HARDEST

Genuine Parts Company’s global footprint and NAPA brand (Item 1) are increasingly threatened by competitive consolidation because rivals are using superior scale to offer lower prices and more advanced artificial intelligence tools (Risks). This pressure is visible in the North America Automotive segment, where EBITDAEBITDAEarnings Before Interest, Taxes, Depreciation & Amortization — a rough proxy for operating cash profit, stripping out accounting adjustments margins fell 110 basis points to 5.5% (8-K).

Furthermore, the "robust distribution network" cited as a core strength (Item 1) is proving vulnerable to vendor instability. The September 2025 Chapter 11 bankruptcy of a key North American vendor directly undermines the supply chain reliability that Genuine Parts Company claims as a competitive advantage (Risks). Finally, the focus on "internal execution" (8-K) is at risk of being derailed by the separation process, which introduces potential dis-synergies and significant transaction costs that could sap the resources needed to fight off competitors like AutoZone and O'Reilly (Risks).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a tale of two companies. The Industrial segment is the current pillar of strength, growing sales by 4.6% and expanding EBITDAEBITDAEarnings Before Interest, Taxes, Depreciation & Amortization — a rough proxy for operating cash profit, stripping out accounting adjustments margins to 13.4% (8-K). In contrast, the Automotive segments are seeing sales growth that fails to protect the bottom line, with International Automotive EBITDAEBITDAEarnings Before Interest, Taxes, Depreciation & Amortization — a rough proxy for operating cash profit, stripping out accounting adjustments falling 4.3% despite a 6.4% rise in sales (8-K).

When viewed against the peer group, Genuine Parts Company’s efficiency is lagging. Its 2.1% Free Cash Flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin is the lowest among its peers, trailing significantly behind O'Reilly (9.8%) and AutoZone (11.0%). While Genuine Parts Company’s 3.5% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth is respectable, the 4.9% operating margin is the thinnest in the group (Peer Benchmarking). This suggests that while Genuine Parts Company can move volume, it is struggling to convert those sales into cash as effectively as its rivals. Short interest stands at 3.0% of the float, indicating that while there is some bearish sentiment, the market is not yet betting on a total collapse (Yahoo Finance).

4. IS IT WORTH IT AT THIS PRICE?

At a forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 12.9x, the market is pricing in a long-term growth rate of just 0.8% (CAPM Analysis). This represents a 39% discount to the peer median of 21.1x. This modest valuation is justified by Genuine Parts Company's position as the peer group's laggard in FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin and operating margin (Peer Benchmarking).

The stock appears attractively valued only if one believes the 2027 separation will successfully isolate the higher-margin Industrial business and allow the Automotive business to close the massive margin gap with O'Reilly (19.9% operating margin). However, the current net loss and the 7.4x net leverage ratio (CAPM Analysis) suggest that the path to that "unlocked value" is narrow and fraught with execution risk.

5. WHAT WOULD CHANGE THIS VIEW?

Constructive if North America Automotive EBITDAEBITDAEarnings Before Interest, Taxes, Depreciation & Amortization — a rough proxy for operating cash profit, stripping out accounting adjustments margins stabilize and return toward the 6.6% level seen in the prior year, signaling that the "productivity initiatives" are working (8-K).
Cautious if the 2027 separation timeline is delayed or if transaction costs cause 2026 adjusted EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric to fall below the guided $7.50 range (8-K).
Cautious if the bankruptcy of the key North American vendor leads to broader inventory shortages that cap sales growth below the 3% floor of 2026 guidance.

6. BOTTOM LINE

Structural Advantage: A massive, 10,800-location global distribution network anchored by the NAPA brand and a high-margin Industrial segment.

Bottom Line: Genuine Parts Company is a high-yield turnaround play where the industrial engine is performing well, but the automotive business requires a total overhaul before it can be successfully spun off.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Demand Sensitivity: Genuine Parts Company depends on automotive and industrial demand, which is threatened by persistent inflation, elevated interest rates, and consumer debt levels that may cause customers to defer maintenance or industrial projects.
Separation Execution: The planned separation of Global Automotive and Global Industrial into two independent, publicly traded companies by the first quarter of 2027 involves significant costs, potential operational dis-synergies, and the risk that the separation may not achieve intended financial or strategic benefits.
Supply Chain and Vendor Stability: Genuine Parts Company faces risks from supplier consolidation, raw material shortages, and the insolvency of key partners, such as the September 2025 Chapter 11 bankruptcy of a key North America Automotive vendor.
Competitive Pressures: The automotive aftermarket is experiencing consolidation among competitors, which may enhance their ability to offer lower prices, utilize advanced technology like artificial intelligence, and capture market share at the expense of Genuine Parts Company.
Geopolitical and Trade Instability: Global operations are vulnerable to international trade policies, including U.S. tariffs—such as the 20% tariff on Chinese imports and 25% tariff on Canadian and Mexican imports imposed in early 2025—which have impacted SG&ASG&ASelling, General & Administrative expenses — operating costs not directly tied to making the product: salaries, marketing, rent, etc. expenses and gross margins.

2. Company-Specific Risks

Supply Chain Modernization: The initiative to modernize distribution and fulfillment centers requires substantial capital investment; delays or disruptions in these construction and technology projects could materially impact results of operations.
E-commerce Adaptation: Failure to successfully provide and secure the e-commerce tools demanded by retail and business customers could lead to a loss of market share to digital and e-commerce-focused competitors.
Unionization: An increase in union activity among employees could disrupt operations and increase operating costs, while Genuine Parts Company's response to such efforts could negatively impact brand perception.
Asbestos Litigation: Genuine Parts Company is a party to numerous pending asbestos liability lawsuits related to the distribution of automotive parts sold primarily before 1991, with some claims seeking substantial damages.

3. Regulatory/Legal Risks

International Trade and Taxation: Changes in tax laws or the interpretation of existing policies in the various jurisdictions where Genuine Parts Company operates could lead to audits, legal challenges, and additional costs, including taxes and penalties for historical periods.
Climate Change Regulation: Legislative initiatives aimed at reducing greenhouse gas emissions, including mandatory annual reporting requirements in jurisdictions outside the U.S., expose Genuine Parts Company to potential fines, regulatory inquiries, and increased compliance costs.
Data Privacy and Cybersecurity: The regulatory environment related to data collection and privacy is becoming increasingly rigorous, and failure to comply with these evolving standards could result in significant additional costs and legal exposure.

4. Financial Impact Map

Demand Sensitivity → Net Sales → Declining economic conditions may cause consumers to defer vehicle maintenance and industrial customers to reduce output. Separation Execution → Operating Expenses → Significant costs related to restructuring, dis-synergies, and establishing stand-alone infrastructure. Supply Chain and Vendor Stability → Accounts Receivable / Cash Flow → Bankruptcy of a key vendor may lead to an inability to collect outstanding receivables or generate future sales. Competitive Pressures → Gross Profit / Earnings → Pricing pressures from competitors may force price reductions, leading to a material decline in revenues and earnings. Geopolitical and Trade Instability → SG&A Expenses / Gross Margins → Tariffs and related inflationary pressures have directly impacted these line items.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
14A	Feb 2026	—
10-K	Feb 2026	Dec 2025
8-K	Feb 2026	—
10-Q	Oct 2025	Sep 2025