One-glance verdict
Within fair range
$110.73 our estimate vs market $128.67
Wall Street consensus: $134.62 (21.6% higher than our fair-value estimate)
16% above our estimate
Fundamentals snapshot
Genuine Parts Company
GPC · NYQ · Consumer Cyclical · Auto Parts
Current price
$128.67
52-week range
$90.78 - $151.57
Market cap
$17.90B
Balance sheet
Stretched
7.43x Adequate
Net debt $6.21B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 1.6% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 270.9% above its 5-year average P/E.
- Risk Net debt grew 72.5% over 3 years.
What this company does
Genuine Parts Company
Genuine Parts Company, best known for its NAPA Auto Parts stores, sells replacement parts for cars and trucks to both professional mechanics and everyday drivers. The company also operates a large industrial business that sells essential parts like bearings and hoses to factories and other businesses. This combination of automotive and industrial parts provides a steady business, because vehicles and machinery always need repairs, making sales less dependent on the overall economy.
How the company got here
Genuine Parts Company (GPC) started in 1928 when Carlyle Fraser bought a small auto parts store in Atlanta, Georgia. The company grew by supplying parts to the increasing number of independent car repair garages. A key turning point was its close relationship with the National Automotive Parts Association (NAPA), which helped it become a nationwide distributor. Over the years, GPC expanded by acquiring other companies, including entering the industrial parts business in 1976 with the purchase of Motion Industries. This strategy of diversification (expanding into different business areas to reduce risk) helped it grow into a global company.
What it actually does
Genuine Parts Company is a large distributor, which means it's like a giant wholesaler that supplies replacement parts for both cars and industrial machinery. You might not know the parent company's name, but you've likely seen its most famous brand, NAPA Auto Parts stores. The company doesn't make the parts itself; instead, it buys them from manufacturers and uses its huge network of stores and warehouses to get them to customers quickly and reliably. This network is its main advantage, ensuring that a local repair shop or a large factory can get the critical part it needs right away to avoid costly delays.
Automotive Parts Group
This is the company's largest and most well-known business, making up the majority of its sales. It sells millions of different replacement parts and accessories for cars, trucks, and other vehicles through its network of over 10,000 locations, most famously under the NAPA brand. The main customers are professional repair shops and service stations, often called the 'do-it-for-me' market, who need parts delivered quickly to fix their customers' cars. While it also sells to everyday people who fix their own cars (the 'do-it-yourself' market), the professional segment is its primary focus.
Industrial Parts Group
This part of the company, which operates under the name Motion, is a major supplier of replacement parts for factories and industrial machinery. Instead of car parts, Motion provides things like bearings, hoses, and motors that keep manufacturing equipment running smoothly. Its customers are businesses in a wide range of industries, from food processing to automotive manufacturing, that need these critical parts for maintenance, repair, and operations (MRO). This business is a significant part of the company, providing a different stream of revenue (income) from the automotive side.
What management is betting on now
Management's biggest current bet is to separate its two main businesses, Automotive and Industrial, into two independent, publicly traded companies. The goal is to allow each business to focus more effectively on its specific customers and markets, and to make its own investment decisions to fuel growth. For the automotive side, the company is investing in technology and its supply chain (the system of getting products from the supplier to the customer) to better serve its professional repair shop customers. For the industrial business, the strategy includes growing by acquiring other companies and focusing on providing value-added services like technical expertise and repair.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$150.05M
FY2024 Q3
$357.96M
FY2024 Q4
$-26.72M
FY2025 Q1
$-160.67M
FY2025 Q2
$80.96M
FY2025 Q3
$239.95M
FY2025 Q4
$260.68M
FY2026 Q1
$-33.64M
Revenue
$6.26B
Net income
$188.53M
Diluted EPS
1.37
Operating cash flow
$63.92M
Free cash flow
$-33.64M
Fetching…
Sources
Revenue
$6.01B
Net income
$-609.50M
Diluted EPS
-4.38
Operating cash flow
$380.07M
Free cash flow
$260.68M
Fetching…
Sources
Revenue
$6.26B
Net income
$226.17M
Diluted EPS
1.62
Operating cash flow
$341.57M
Free cash flow
$239.95M
Fetching…
Sources
Revenue
$6.16B
Net income
$254.88M
Diluted EPS
1.83
Operating cash flow
$209.94M
Free cash flow
$80.96M
Fetching…
Sources
Revenue
$5.87B
Net income
$194.39M
Diluted EPS
1.40
Operating cash flow
$-40.83M
Free cash flow
$-160.67M
Fetching…
Sources
Revenue
$5.77B
Net income
$133.06M
Diluted EPS
0.96
Operating cash flow
$155.03M
Free cash flow
$-26.72M
Fetching…
Sources
Revenue
$5.97B
Net income
$226.58M
Diluted EPS
1.62
Operating cash flow
$484.31M
Free cash flow
$357.96M
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Sources
Revenue
$5.96B
Net income
$295.54M
Diluted EPS
2.11
Operating cash flow
$293.61M
Free cash flow
$150.05M
Fetching…
Sources
Is it cheap or expensive?
Fair value $110.73 vs current price $128.67
Wall Street consensus is the average analyst price target: $134.62 (21.6% higher than our fair-value estimate).
Our most-likely fair value is $110.73 a share — about 13.9% away from today's price of $128.67, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $6.2B. Interest coverage 7.4x.
Net debt
$6.21B
Interest coverage
7.43x
Genuine Parts Company's profit covers its interest bill about 7.4 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
GPC
BASELINE
Genuine Parts Company
Total debt $6.71B Interest coverage 7.43x This is the baseline the peer rows are being compared against.
Total debt $8.73B Interest coverage 14.72x +98% vs GPC Carries about 2.0x more debt cushion than GPC.
Total debt $13.09B Interest coverage 7.42x -0% vs GPC Has roughly the same debt cushion as GPC.
Total debt $5.24B Interest coverage 4.85x -35% vs GPC Carries about 1.5x less debt cushion than GPC.
Total debt $5.65B Interest coverage 1.16x -84% vs GPC Carries about 6.4x less debt cushion than GPC.
What you should know
The case for and against GPC
3 Rewards
3 Risks
Rewards
-
Revenue grew 1.6% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 3.3% with 44-year payout history.
Risks
-
Stock trades 270.9% above its 5-year average P/E.
-
Net debt grew 72.5% over 3 years.
-
Operating margin compressed from 7.3% to 5.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
292.43x
Forward P/E
15.32x
P/B
3.96x
P/S
0.72x
EV/EBITDA
11.77x
PEG ratio
1.32x
Profitability
How much profit each dollar creates
Gross margin
37.5%
Operating margin
5.8%
Net margin
0.2%
ROE
1.3%
ROA
4.5%
Health
Liquidity and balance-sheet strength
Debt / equity
1.49x
Current ratio
1.09x
Quick ratio
0.39x
Total debt
$6.71B
Total cash
$500.02M
Growth
How the business has been compounding
Revenue TTM
$24.70B
Revenue 5Y CAGR
6.5%
EPS TTM
0.44
EPS 5Y CAGR
-61.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$995.50M
Free CF TTM
$420.92M
FCF margin
1.7%
Dividend
Shareholder payout
Yield
3.3%
Payout ratio
943.8%
Last ex-div date
2026-06-05