# Genuine Parts (GPC.US)

Canonical: https://gigainvestors.com/s/GPC

Analysis as of: 2026-10-16T07:28:51.181Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $133.51 per share; close as of 2026-10-15.

Estimated value: low $97.71 per share, central $111.13 per share, high $128.98 per share. Buy at or below the central value $111.13 per share. Valuation as of 2026-10-16T07:28:51.181Z; scenarios are not confidence intervals.

Expected annual return: 8.8% at the stated quote. About 8.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.11×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.06×

- FY2018: 0.06×

- FY2019: 0.06×

- FY2020: 0.06×

- FY2021: 0.06×

- FY2022: 0.07×

- FY2023: 0.08×

- FY2024: 0.06×

- FY2025: 0.05×

### moat: pass

- ROIC, median of available years: 17.6%

- ROIC, second-lowest year: 14.4%

- Typical minus recent gross margin: -0.2 pp

- Typical gross margin (annual median): 34.4%

- Recent gross margin (lower of latest and 3-year median): 34.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.5%

- ROIC including acquisitions, ten-year median: 10.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 23.4%

- FY2017: 15.3%

- FY2018: 18.5%

- FY2019: 14.4%

- FY2020: 16.8%

- FY2021: 20.1%

- FY2022: 25.8%

- FY2023: 24.2%

- FY2024: 16.5%

- FY2025: 13.4%

### economics: pass

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.3B

- Net income, five-year total: $4.4B

- Return on incremental invested capital: 93.2%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -6.1 pp

- Working capital / revenue, final three-year average: 7.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.03×

- FY2022: 1.01×

- FY2023: 0.97×

- FY2024: 0.88×

- FY2025: 2.03×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 18.5% vs 16.5%

- Per-share earnings: 4.59 to 6.47 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.9%

- Ordinary dilution, 5-year annual growth: -0.8%

- Market cap gain: $2.7B

- Cumulative retained earnings: $567M

- Diluted shares, 10-year annual growth: -0.9%

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.4%

- Per-share value change: $1.89

- Per-share value, starting three-year median: $4.59

- Per-share value, ending three-year median: $6.47

- Buybacks concentrated in cheaper years (correlation): 0.47

- Average buyback yield: 0.9%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $4.2B

- Cumulative net income, 10 years: $7.1B

- ROIC, first three-year median: 18.5%

- ROIC, last three-year median: 16.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $4.59

- FY2017: $4.18

- FY2018: $5.50

- FY2019: $4.24

- FY2020: -$0.20

- FY2021: $6.23

- FY2022: $8.31

- FY2023: $9.33

- FY2024: $6.47

- FY2025: $0.47

### accounting: pass

- Sloan accruals: -4.0%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 5.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 13.51×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.14×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.9%

- FY2017: -1.6%

- FY2018: -2.6%

- FY2019: -1.8%

- FY2020: -15.2%

- FY2021: -2.5%

- FY2022: -1.7%

- FY2023: -0.7%

- FY2024: -1.8%

- FY2025: -4.0%

## Holders

- [Seth Klarman](https://gigainvestors.com/BAUPOST): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Harry Burn](https://gigainvestors.com/SSHFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 27% since Nov 2022 · "Operating expenses increased $325 million driven by personnel costs, healthcare costs, rent and freight." (SEC filing, Feb 2026) · sales +3.5%

Story as of 2026-10-16T09:58:50.252Z; price observation 2026-10-15.

Price needs cash profits to grow 3.2% a year for ten years

- 2025-04-24: GPC Q1 Earnings Call: Revenue Beat Offset by Soft Markets and Tariff Uncertainty ([finance.yahoo.com](https://finance.yahoo.com/news/gpc-q1-earnings-call-revenue-184854722.html))

- 2025-07-22: GPC Tops Q2 Earnings Estimates, Slashes 2025 View Amid Tariffs ([finance.yahoo.com](https://finance.yahoo.com/news/gpc-tops-q2-earnings-estimates-141200671.html))

- 2025-10-23: Genuine Parts (GPC) Margin Decline Reinforces Cautious View Despite Continued Profit Growth ([finance.yahoo.com](https://finance.yahoo.com/news/genuine-parts-gpc-margin-decline-011135322.html))

- 2026-02-17: Genuine Parts Plans to Split Into Two Entities, Sets Weak Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/genuine-parts-plans-split-two-173434959.html))

- 2026-04-21: Genuine Parts Q1 Earnings Miss Estimates on Costs, Revenues Beat ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/genuine-parts-q1-earnings-miss-185600057.html))

- 2026-07-22: Genuine Parts Q2 sales up 6%, full-year EPS guidance lowered ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/genuine-parts-q2-sales-6-170832847.html))

### Sales · FY2024–2025

sales +3.5%; source https://www.sec.gov/Archives/edgar/data/40987/000004098726000003/gpc-20251231.htm; observed 2026-02-20.

- FY2016: $15B 

- FY2017: $16B 

- FY2018: $17B 

- FY2019: $18B 

- FY2020: $17B 

- FY2021: $19B 

- FY2022: $22B 

- FY2023: $23B 

- FY2024: $23B 

- FY2025: $24B 

### Gross margin · FY2025

gross margin 34.6%; source https://www.sec.gov/Archives/edgar/data/40987/000004098726000003/gpc-20251231.htm; observed 2026-02-20.

- FY2016: 30.0% 

- FY2017: 30.1% 

- FY2018: 32.8% 

- FY2019: 33.4% 

- FY2020: 34.2% 

- FY2021: 35.2% 

- FY2022: 35.0% 

- FY2023: 35.9% 

- FY2024: 36.3% 

- FY2025: 34.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto parts; annual sales are USD 24.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/40987/000004098726000003/gpc-20251231.htm (filed 2026-02-20); FY2025: revenue 24300141000; grossProfit 8402674999; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GPC.US: 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.

### Why customers stay

Margins ranged from 34.6% to 36.3% during 2023–25; it earns 17.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 35.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 36.3%.

- Source: https://www.sec.gov/Archives/edgar/data/40987/000004098726000003/gpc-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 34.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,0.2343181672079334],[2017,0.1529352843695533],[2018,0.18512029108718608],[2019,0.14386140144400597],[2020,0.16781679576319644],[2021,0.20064447388236584],[2022,0.2575477838286438],[2023,0.24219302063571083],[2024,0.16547589210064206],[2025,0.13448314958063284]]; median 0.17646854342519125. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 35% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/40987/000004098726000003/gpc-20251231.htm (filed 2026-02-20); Gross margin observations: [[2021,0.35156103359156693],[2022,0.3502947799583209],[2023,0.3590495010742462]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 16.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 2681341.566872984; upkeep 157961658.43312702; owner earnings 676765341.566873. Growth capex / owner earnings = 0.003961995986178961.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 156760000; owner earnings 627688000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 4838000; upkeep 227584000; owner earnings 810474000. Growth capex / owner earnings = 0.00596934633313345.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 20610000; upkeep 257263000; owner earnings 621085000. Growth capex / owner earnings = 0.03318386372235684.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 0; upkeep 153502000; owner earnings 90238000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 0; upkeep 266136000; owner earnings 923625000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 339632000; owner earnings 1190888000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 121965681.15127808; upkeep 390709318.8487219; owner earnings 1276343681.151278. Growth capex / owner earnings = 0.09555865160178761.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 51294076.079922736; upkeep 516044923.92007726; owner earnings 796009076.0799227. Growth capex / owner earnings = 0.06443905932898257.

- Source: https://www.sec.gov/Archives/edgar/data/40987/000004098726000003/gpc-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 469838000; owner earnings 134130000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,386863000],[2017,395475000],[2018,415983000],[2019,438890000],[2020,453277000],[2021,465649000],[2022,495917000],[2023,526674000],[2024,554931000],[2025,563842000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/40987/000004098726000003/gpc-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 16671000 USD.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GPC.US SharesStats.PercentInsiders = 0.515 percentage points; cache date 2026-10-16.

### What could break it

"Our business will be adversely affected if demand for our products slows." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/40987/000004098726000003/gpc-20251231.htm (filed 2026-02-20); Our business will be adversely affected if demand for our products slows.

### What the price says

The price assumes cash profits grow 3.2% yearly over ten years; actual decline was 14.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.03286808522291029. Price 133.51; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.838179362081628 → FY2025 0.9632315978456014. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $90.59 per share

- 2016-11: $96.23 per share

- 2016-12: $95.54 per share

- 2017-01: $96.81 per share

- 2017-02: $95.71 per share

- 2017-03: $92.41 per share

- 2017-04: $92.02 per share

- 2017-05: $92.62 per share

- 2017-06: $92.76 per share

- 2017-07: $84.93 per share

- 2017-08: $82.83 per share

- 2017-09: $95.65 per share

- 2017-10: $88.23 per share

- 2017-11: $92.97 per share

- 2017-12: $95.01 per share

- 2018-01: $104.07 per share

- 2018-02: $91.84 per share

- 2018-03: $89.84 per share

- 2018-04: $88.32 per share

- 2018-05: $90.79 per share

- 2018-06: $91.79 per share

- 2018-07: $97.31 per share

- 2018-08: $99.85 per share

- 2018-09: $99.40 per share

- 2018-10: $97.92 per share

- 2018-11: $103.71 per share

- 2018-12: $96.02 per share

- 2019-01: $99.82 per share

- 2019-02: $108.78 per share

- 2019-03: $112.03 per share

- 2019-04: $102.54 per share

- 2019-05: $98.90 per share

- 2019-06: $103.58 per share

- 2019-07: $97.12 per share

- 2019-08: $90.29 per share

- 2019-09: $99.59 per share

- 2019-10: $102.58 per share

- 2019-11: $104.37 per share

- 2019-12: $106.23 per share

- 2020-01: $93.57 per share

- 2020-02: $87.24 per share

- 2020-03: $67.33 per share

- 2020-04: $79.28 per share

- 2020-05: $83.41 per share

- 2020-06: $86.96 per share

- 2020-07: $90.15 per share

- 2020-08: $94.44 per share

- 2020-09: $95.17 per share

- 2020-10: $90.43 per share

- 2020-11: $98.37 per share

- 2020-12: $100.43 per share

- 2021-01: $93.88 per share

- 2021-02: $105.35 per share

- 2021-03: $115.59 per share

- 2021-04: $124.97 per share

- 2021-05: $131.12 per share

- 2021-06: $126.47 per share

- 2021-07: $126.92 per share

- 2021-08: $122.19 per share

- 2021-09: $121.23 per share

- 2021-10: $131.11 per share

- 2021-11: $127.74 per share

- 2021-12: $140.20 per share

- 2022-01: $133.23 per share

- 2022-02: $122.16 per share

- 2022-03: $126.02 per share

- 2022-04: $130.05 per share

- 2022-05: $136.73 per share

- 2022-06: $133.00 per share

- 2022-07: $152.87 per share

- 2022-08: $156.01 per share

- 2022-09: $149.32 per share

- 2022-10: $177.86 per share

- 2022-11: $183.33 per share

- 2022-12: $173.51 per share

- 2023-01: $167.82 per share

- 2023-02: $176.86 per share

- 2023-03: $167.31 per share

- 2023-04: $168.31 per share

- 2023-05: $148.93 per share

- 2023-06: $169.23 per share

- 2023-07: $155.72 per share

- 2023-08: $153.73 per share

- 2023-09: $144.38 per share

- 2023-10: $128.86 per share

- 2023-11: $132.78 per share

- 2023-12: $138.50 per share

- 2024-01: $140.23 per share

- 2024-02: $149.26 per share

- 2024-03: $154.93 per share

- 2024-04: $157.21 per share

- 2024-05: $144.14 per share

- 2024-06: $138.32 per share

- 2024-07: $147.11 per share

- 2024-08: $143.26 per share

- 2024-09: $139.68 per share

- 2024-10: $114.70 per share

- 2024-11: $126.73 per share

- 2024-12: $116.76 per share

- 2025-01: $116.25 per share

- 2025-02: $124.88 per share

- 2025-03: $119.14 per share

- 2025-04: $117.55 per share

- 2025-05: $126.52 per share

- 2025-06: $121.31 per share

- 2025-07: $128.88 per share

- 2025-08: $139.33 per share

- 2025-09: $138.60 per share

- 2025-10: $127.31 per share

- 2025-11: $130.40 per share

- 2025-12: $122.96 per share

- 2026-01: $138.99 per share

- 2026-02: $119.26 per share

- 2026-03: $105.75 per share

- 2026-04: $107.23 per share

- 2026-05: $98.70 per share

- 2026-06: $117.98 per share

- 2026-07: $124.37 per share

- 2026-08: $135.67 per share

- 2026-09: $125.74 per share

- 2026-10: $133.51 per share

## Annual estimated value (USD per share)

- FY2016: low $64.59 per share, central $83.43 per share, high $97.59 per share

- FY2017: low $66.39 per share, central $82.90 per share, high $96.83 per share

- FY2018: low $74.08 per share, central $100.14 per share, high $117.35 per share

- FY2019: low $71.06 per share, central $96.05 per share, high $112.56 per share

- FY2020: low $54.56 per share, central $61.55 per share, high $70.86 per share

- FY2021: low $61.75 per share, central $72.51 per share, high $84.11 per share

- FY2022: low $83.20 per share, central $94.46 per share, high $109.46 per share

- FY2023: low $92.13 per share, central $104.21 per share, high $120.28 per share

- FY2024: low $90.04 per share, central $102.44 per share, high $118.95 per share

- FY2025: low $93.36 per share, central $106.23 per share, high $123.37 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/40987/000004098726000003/gpc-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.