Genuine Parts Company (GPC)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Genuine Parts is a distributor of replacement parts, not a manufacturer. Its scale—65,000 employees and three automotive and industrial segments—gives it some distribution density, but this is still a competitive, cyclical auto-parts business, as the Lynch category notes. The filed record is mixed. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.5B, net income $227.6M, and diluted EPS $1.65. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $6.2B, net income $254.9M, and diluted EPS $1.83—so sales rose while profit fell. More troubling, fiscal 2025, the period ended 2025-12-31, produced $24.3B of revenue but only $65.9M of net income and $0.47 diluted EPS, versus fiscal 2024 net income of $904.1M and $6.47 diluted EPS. That is a dramatic decline. FairStock’s calculations show ROE of 0.71%, ROCE of 4.48%, debt-to-equity of 1.46, and an Altman Z-Score of 1.43, which suggests weak returns and financial risk. The Piotroski F-Score of 8/9 is a rare positive, and trailing free cash flow of $759.4M gives a 4.2% FCF yield. Still, at the 2026-10-13 close of $130.71, the P/E is 502.73, EV/EBITDA is 32.48, and the Graham Number is $13.86, producing a negative margin of safety. The 3.32% dividend yield and beta of 0.66 offer some comfort, but the price already assumes a sharp earnings recovery. I would need to see fiscal 2025’s collapse proven one-time and returns improve before calling this a value opportunity.

In plain English: Genuine Parts Company sells replacement parts for cars, trucks, and industrial equipment. Sales have grown modestly, but profits fell sharply in the year ended 2025-12-31 and were lower in the most recent quarter than a year earlier. Based on the numbers given, the stock looks expensive relative to current profits and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer