Genuine Parts Company (GPC) AI Stock Analysis

NYSE: GPCAI research summary: business, growth, valuation, analysts, bull and bear case.

GPC AI stock analysis summary

AI Research

Genuine Parts Company (GPC) is a global distributor of automotive replacement parts and industrial components. In FY2025, revenue rose 3.5% to $24.30B, while net income declined sharply to $65.9M from $904.1M in FY2024. The company maintains a 3.17% forward dividend yield and holds net debt of $6.09B as of June 30, 2026.

Market cap
$18.47B
Revenue (TTM)
$25.07B
P/E
535.8x
fwd 15.4x
1Y return
3.8%
S&P 500 16.8%
Avg. target
$140.56
4.9% vs last close

Bull case

  • Forward valuation stands at a P/E of 15.4x, which trades below the S&P 500 Consumer Cyclical peer median of 15.7x.
  • Analysts estimate FY2026 EPS will reach $7.74, representing an estimated annual earnings recovery of 5.0%.
  • The company has paid dividends for 44 consecutive years, supporting a forward dividend yield of 3.17%.

Bear case

  • FY2025 net income dropped to $65.9M from $904.1M in FY2024, pushing net margin down to 0.3%.
  • Net debt reached $6.09B as of June 30, 2026, alongside a debt-to-equity ratio of 1.47.
  • In the latest quarter ended June 30, 2026, quarterly earnings fell 9.8% year-over-year.

What Genuine Parts does

Genuine Parts Company distributes automotive replacement parts and industrial parts and materials through two primary segments: Automotive Parts Group and Industrial Parts Group. Its automotive division supplies parts, accessories, and supplies for hybrid, electric, passenger, commercial, and farm vehicles to repair shops, service stations, fleet operators, dealers, and individual consumers. The Industrial Parts Group distributes replacement parts such as bearings, power transmission products, industrial automation equipment, hydraulic and pneumatic components, and material handling systems across sectors including food and beverage, mining, automotive, energy, and transportation. The company also offers assembly, repair, and fluid power services.

Growth and profitability

Between FY2021 and FY2025, Genuine Parts Company expanded revenue from $18.87B to $24.30B, reflecting a 5-year revenue CAGR of 8.0%. Annual net income peaked in FY2023 at $1.32B with a net margin of 5.7% before falling to $904.1M in FY2024 and $65.9M in FY2025, bringing net margin down to 0.3%. Free cash flow similarly decreased from $992.1M in FY2021 to $420.9M in FY2025. Over the trailing twelve months, revenue totaled $25.07B with an operating margin of 6.6% and diluted EPS of $0.25. In the latest quarter ended June 30, 2026, quarterly revenue grew 6.0% year-over-year, while quarterly earnings contracted by 9.8%.

GPC income statement →

Balance sheet and cash flow

As of June 30, 2026, Genuine Parts Company held $559.1M in cash and short-term investments against $6.65B in total debt, resulting in net debt of $6.09B. Shareholders' equity stood at $4.53B, with a debt-to-equity ratio of 1.47 and a current ratio of 1.16. In FY2025, operating cash flow generated $890.8M. Capital allocation included $469.8M in capital expenditures, $563.8M in dividends paid, and $16.7M directed toward share buybacks, contributing to a 5-year share count change of -3.5%.

GPC balance sheet →

Valuation and performance

Genuine Parts Company closed at $133.96 on October 16, 2026, with an enterprise value of $23.96B and a market cap of $18.47B. Due to depressed trailing earnings, its trailing P/E stands at 535.8x compared to the median of its S&P 500 Consumer Cyclical peers of 19.7x. On a forward basis, its P/E of 15.4x sits slightly below the peer median of 15.7x, while its EV/EBITDA of 32.3x exceeds the peer median of 13.2x. Over the past 1-year and 5-year periods, GPC shares gained 3.8% and 21.7%, trailing the S&P 500 returns of 16.8% and 83.0%, respectively.

GPC key metrics →

GPC dividend

Genuine Parts Company offers a forward annual dividend of $4.25 per share, yielding 3.17% with a payout ratio of 56.6%. The company distributes dividends quarterly and has paid dividends for 44 consecutive years. Its 5-year annualized dividend growth rate is 5.4%, and the stock last traded ex-dividend on September 4, 2026.

GPC dividend history →

What analysts expect

Wall Street analyst coverage consists of 4 Strong Buy, 1 Buy, and 6 Hold ratings, with zero Sell ratings. The mean price target of $140.56 indicates an upside of 4.9% from the last close of $133.96. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $25.55B and EPS of $7.74. For the next fiscal year, 10 analysts estimate revenue of $26.47B and EPS of $8.32. Over the last four quarters, the company beat EPS estimates twice. The next earnings date is October 20, 2026.

GPC forecast and price target →

Key risks and what to watch

  • Free cash flow has contracted consecutively from $1.13B in FY2022 to $420.9M in FY2025.
  • The balance sheet carries total debt of $6.65B against cash and short-term investments of $559.1M.
  • Operating margin declined from 7.6% in FY2023 to 5.0% in FY2025, falling below the sector peer median operating margin of 13.6%.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this GPC AI stock analysis

This page is an AI-written research summary of Genuine Parts Company (GPC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: GPC income statement, GPC balance sheet, GPC key metrics, GPC analyst forecast, GPC chart. See the GPC stock overview for the latest quote and news.

GPC AI stock analysis FAQ

What is Genuine Parts Company's dividend yield and track record?

Genuine Parts Company pays an annual forward dividend of $4.25, representing a yield of 3.17% as of October 16, 2026. The company has paid dividends for 44 consecutive years with a 5-year annualized growth rate of 5.4%.

What is the consensus analyst target for GPC stock?

The mean analyst price target is $140.56, which is 4.9% above the closing price of $133.96 on October 16, 2026. Out of 11 ratings, 4 are Strong Buy, 1 is Buy, and 6 are Hold.

How much debt does Genuine Parts Company carry?

As of June 30, 2026, Genuine Parts Company had $6.65B in total debt and $559.1M in cash and short-term investments, resulting in net debt of $6.09B and a debt-to-equity ratio of 1.47.

When does Genuine Parts Company report earnings next?

The company's next earnings report is scheduled for October 20, 2026. Analysts project full-year FY2026 revenue of $25.55B and EPS of $7.74.

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