Genuine Parts (GPC)
Consumer · NYSE · US
Fundamentals
Valuation and ratings
Genuine Parts trades at $125.66, which is 60% above the $50.25 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 33 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 285.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Genuine Parts
Genuine Parts Company distributes automotive and industrial replacement parts. The company operates in three segments: North America Automotive Parts Group, International Automotive Parts Group, and Industrial Parts Group. It distributes automotive replacement parts, accessories, tools, equipment, and related solutions for hybrid and electric vehicles, trucks, buses, motorcycles, farm equipment, and heavy-duty equipment. The company also offers replacement parts, including brakes, batteries, filters, engine components, and fluids; specialized services, such as paint mixing, hydraulic hose assembly, battery testing, and key cutting; and accessories and specialty equipment for automotive and heavy-duty vehicles, as well as tools and diagnostic devices for repair and maintenance. In addition, it provides independent repair shops and auto care centers under the NAPA brand, and offers technical expertise and training programs to customers. Further, the company provides bearings, seals, and gaskets; hose, fittings, hydraulics, and pneumatics components; abrasives, adhesives, sealants, and tape; pumps and power transmission; tools and testing equipment; electrical supplies and safety products; and chemicals and janitorial supplies. Additionally, it offers inventory management; vendor-managed inventory; asset repair and tracking, including radio frequency identification; and specialized repair services for gearboxes, fluid power systems, pumps, drive shafts, electrical panels, and hoses and gaskets. The company was incorporated in 1928 and is headquartered in Atlanta, Georgia.
GPC passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
14 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Bill Nygren, HARRIS ASSOCIATES L P$832.04M · 0.6% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$159.19M · 0.1% of book
- Seth Klarman, BAUPOST GROUP LLC/MA$157.60M · 3.1% of book
- Marshall Wace, MARSHALL WACE, LLP$155.52M · 0.1% of book
- Steve Cohen, Point72 Asset Management, L.P.$88.78M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Genuine Parts (GPC) undervalued?
Against our discounted cash flow estimate of $50.25, GPC at $125.66 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own GPC?
14 of the institutions we track reported a position in GPC in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is GPC's P/E ratio?
GPC trades at 285.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for GPC, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.