Skip to Content
Morningstar
Get 14 Days Free

Genuine Parts Co GPC

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Genuine Parts’ Recovery Continues Across Both Segments in Its Second Quarter; Shares Still Seem Rich

Zain Akbari, CFA Equity Analyst

Analyst Note

| Zain Akbari, CFA |

Our $109 per share valuation of narrow-moat Genuine Parts should rise by a low- to mid-single-digit percentage, reflecting solid second-quarter earnings and the time value of money. Its automotive and industrial segments both performed well, with sales up 28% and 20%, respectively. We expect low- to mid-single digit percentage top-line growth and mid- to high-single digit adjusted operating margins long-term and suggest investors seek a more attractive entry point.

Read Full Analysis

Company Profile

Business Description

Genuine Parts sells automotive parts (about two-thirds of net sales) and industrial components. The company sells vehicle parts to commercial and retail customers through roughly 9,800 stores worldwide, most of which are independently owned. Its industrial unit, primarily operating under the Motion Industries banner in the United States, supplies bearings, power transmission, industrial automation, hydraulic, and pneumatic components to maintenance, repair, and OEM clients.

Contact
2999 Wildwood Parkway
Atlanta, GA, 30339
T +1 678 934-5000
Sector Consumer Cyclical
Industry Specialty Retail
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 50,000

Related

Stock Strategist Industry Reports
Auto-Part Sellers Should Rebound as Pandemic Eases
Their formidable defenses against downturns and short-term pullbacks in miles driven are intact.
Zain Akbari
Commentary
Key ESG Issues Up for Shareholder Vote
Employee welfare and political influence are among the big environmental, social, and governance issues this year.
Jackie Cook
Stock Strategist Industry Reports
How Bricks Compete With Clicks in a New Retail Era
Some retailers are better equipped to fight the Amazon threat.
Zain Akbari
Our Picks
11 Dividend All-Stars
These quality stocks have been added to the Morningstar Dividend Yield Index.
Susan Dziubinski
Premium Article
Stocks for the Next Decade
The future's bright for these 29 companies. Grab the shades.
Susan Dziubinski
Our Picks
3 High-Quality Dividend-Payers Selling at a Discount
We highlight the cheapest stocks among the 14 new entrants to the Morningstar Dividend Yield Focus Index.
Karen Wallace
Quarter-End Insights
Consumer Cyclical: E-Commerce a Key Threat for Some, But Not All
Although some retailers continue to cede share to online peers, some protected businesses should deliver rising profitability.
Jaime M. Katz
Stock Strategist Industry Reports
O'Reilly's in the Pole Position
We think its distribution network sets it up for success in the race for professional and DIY sales.
Zain Akbari
Stock Analyst Update
Genuine Parts Deal Priced Favorably
The purchase of Alliance Automotive will make the narrow-moat firm a more valuable partner to global part vendors that should increasingly depend on the firm for aftermarket sales.
Zain Akbari
Stock Strategist
We See Rising Returns at Genuine Parts Despite Industry Weakness
We think the slump in auto-parts retail is cyclical in nature rather than structural.
Zain Akbari
US Videos
Weekly Wrap: Expect More Disappointing Auto Sales
We still like Ford and GM despite low June numbers. Plus, value in O'Reilly amid dive in auto parts, and a positive big picture for Yum China.
Jeremy Glaser
US Videos
Auto-Parts Retailers Look Compelling Amid Sell-Off
Despite O’Reilly’s disappointing sales numbers, we think the sector can withstand digital threats and offers some opportunities for long-term investors.
Zain Akbari
Stock Strategist Industry Reports
Fear of Amazon's Auto-Parts Efforts Overblown
The moats of the large aftermarket retailers should be able to keep online competition at bay.
Zain Akbari
Our Picks
16 Stocks Added to the Dividend Yield Focus Index
These high-quality dividend payers are the newest entrants to the index, and we take a closer look at three that are undervalued today.
Karen Wallace
Fund Times
A Solid Equity-Income Fund Is Closing
Silver-rated American Century Equity Income gets ahead by losing less.
Gretchen Rupp
US Videos
This Auto-Parts Retailer Is Getting a Tuneup
Patient investors will be rewarded as Advance Auto Parts recovers from integration-related sales declines and implements efficiency measures.
Zain Akbari
US Videos
Plenty of Roadway for Auto-Parts Retailers
Despite a recent sales-growth slowdown, we remain positive on narrow-moat AutoZone, Genuine Parts, Advance, and O’Reilly over the longer run.
Liang Feng
Stock Strategist Industry Reports
Two Auto-Parts Retailers Gain Moats From Growing Cost Advantages, Industry Consolidation
O'Reilly and Advance have expanded their store bases through acquisitions and organic growth, enhancing their cost advantages.
Liang Feng
Credit Insights
Credit Markets Continue to Heal
Many issuers have increased 2013 outlooks as sequestration has not had as meaningful an impact as it might have.
David Sekera
US Videos
Peters: Many Dividend Increases Are 'Remedial Actions'
Despite some dividend newcomers' recent eye-popping dividend increases, investors should continue to focus on stocks with a consistent history of dividend hikes, says Morningstar's Josh Peters.
Jeremy Glaser

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.