📊 GPC Key Takeaways
Is Genuine Parts Co (GPC) a Good Investment?
GPC faces severe profitability deterioration with net income collapsing 92.7% YoY despite 3.5% revenue growth, indicating operational distress beyond topline challenges. Critically thin operating margins (0.2%) and net margins (0.3%) combined with weak returns on equity (1.5%) and assets (0.3%) suggest fundamental business model stress. While FCF remains positive at $420.9M, the company's leverage position (1.08x debt-to-equity) and weakening profitability create elevated risk.
Genuine Parts shows resilient top-line growth and still generates positive operating and free cash flow, but the latest period reflects a severe collapse in earnings power. With operating margin down to 0.2%, net margin at 0.3%, weak interest coverage, and only modest liquidity, the core issue is not revenue stability but sharply deteriorated profitability and reduced financial flexibility.
Why Buy Genuine Parts Co Stock? GPC Key Strengths
- Revenue growth of 3.5% YoY demonstrates market presence and demand persistence
- Positive free cash flow generation of $420.9M provides liquidity cushion despite profitability pressures
- Gross margin of 36.8% indicates reasonable pricing power and procurement efficiency at the product level
- Revenue still grew 3.5% year over year, indicating underlying demand remains intact
- Operating cash flow of $890.76M and free cash flow of $420.92M remain positive despite the earnings decline
- Gross margin of 36.8% suggests the company retains underlying pricing and product mix strength before overhead, financing, and other charges
GPC Stock Risks: Genuine Parts Co Investment Risks
- Catastrophic 92.7% YoY net income decline signals operational control issues or one-time charges requiring investigation
- Operating margin compression to 0.2% and net margin of 0.3% are dangerously thin for a wholesale distribution company
- Elevated leverage (1.08x debt-to-equity) combined with deteriorating profitability limits financial flexibility and increases refinancing risk
- Interest coverage ratio of 2.9x is concerning given profitability trends; limited buffer for further margin compression
- Quick ratio of 0.46x indicates potential liquidity stress when inventory cannot be quickly converted to cash
- Net income fell 92.7% year over year, signaling a major deterioration in earnings quality and margin structure
- Low operating margin, weak ROE/ROA, and 2.9x interest coverage point to pressured profitability and reduced cushion against further weakness
- Current ratio of 1.08x and quick ratio of 0.46x leave limited short-term liquidity flexibility while debt remains meaningful at 1.08x debt-to-equity
Key Metrics to Watch
- Operating margin recovery trajectory and drivers of 92.7% net income decline
- Interest coverage ratio sustainability given current profitability levels
- Debt reduction progress and leverage ratio trend to improve financial flexibility
- Operating cash flow consistency relative to capital expenditure obligations
- Operating margin recovery
- Free cash flow conversion
Genuine Parts Co (GPC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.7% FCF margin may limit capital allocation flexibility.
GPC Profit Margin, ROE & Profitability Analysis
GPC vs Automotive Sector: How Genuine Parts Co Compares
How Genuine Parts Co compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Genuine Parts Co Stock Overvalued? GPC Valuation Analysis 2026
Based on fundamental analysis, Genuine Parts Co shows some fundamental concerns relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Genuine Parts Co Balance Sheet: GPC Debt, Cash & Liquidity
GPC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Genuine Parts Co's revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $9.33 reflects profitable operations.
GPC Revenue Growth, EPS Growth & YoY Performance
GPC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $6.0B | $226.2M | $1.62 |
| Q2 2025 | $6.0B | $254.9M | $1.83 |
| Q1 2025 | $5.8B | $194.4M | $1.40 |
| Q3 2024 | $5.8B | $226.6M | $1.62 |
| Q2 2024 | $5.9B | $295.5M | $2.11 |
| Q1 2024 | $5.8B | $248.9M | $1.78 |
| Q3 2023 | $5.7B | $312.4M | $2.20 |
| Q2 2023 | $5.6B | $344.5M | $2.44 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Genuine Parts Co Dividends, Buybacks & Capital Allocation
GPC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Genuine Parts Co (CIK: 0000040987)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GPC
What is the AI rating for GPC?
Genuine Parts Co (GPC) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GPC's key strengths?
Claude: Revenue growth of 3.5% YoY demonstrates market presence and demand persistence. Positive free cash flow generation of $420.9M provides liquidity cushion despite profitability pressures. ChatGPT: Revenue still grew 3.5% year over year, indicating underlying demand remains intact. Operating cash flow of $890.76M and free cash flow of $420.92M remain positive despite the earnings decline.
What are the risks of investing in GPC?
Claude: Catastrophic 92.7% YoY net income decline signals operational control issues or one-time charges requiring investigation. Operating margin compression to 0.2% and net margin of 0.3% are dangerously thin for a wholesale distribution company. ChatGPT: Net income fell 92.7% year over year, signaling a major deterioration in earnings quality and margin structure. Low operating margin, weak ROE/ROA, and 2.9x interest coverage point to pressured profitability and reduced cushion against further weakness.
What is GPC's revenue and growth?
Genuine Parts Co reported revenue of $24.3B.
Does GPC pay dividends?
Genuine Parts Co pays dividends, with $563.8M distributed to shareholders in the trailing twelve months.
Where can I find GPC SEC filings?
Official SEC filings for Genuine Parts Co (CIK: 0000040987) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GPC's EPS?
Genuine Parts Co has a diluted EPS of $0.47.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GPC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Genuine Parts Co has a SELL rating with 81% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GPC stock overvalued or undervalued?
Valuation metrics for GPC: ROE of 1.5% (sector avg: 12%), net margin of 0.3% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy GPC stock in 2026?
Our dual AI analysis gives Genuine Parts Co a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GPC's free cash flow?
Genuine Parts Co's operating cash flow is $890.8M, with capital expenditures of $469.8M. FCF margin is 1.7%.
How does GPC compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 0.3% (avg: 6%), ROE 1.5% (avg: 12%), current ratio 1.08 (avg: 1.2).