GENUINE PARTS CO (GPC)

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AI: Fair-priced

Price checkThe shares look fairly priced because steady earnings are offset by modest cash returns.

At the latest verifiable close of $135.09 on August 11, 2026, the shares cost about 17.4 times the midpoint of management’s $7.50-$8.00 adjusted 2026 earnings forecast. With roughly 137.9 million shares, the equity value is about $18.6 billion. Forecast free cash flow—cash left after running and investing in the business—of $550-$700 million implies only a 3.0%-3.8% cash yield. That is reasonable, not cheap, for slow-to-moderate growth and meaningful debt, supporting a fair-priced verdict.

Big pictureSales keep growing, but recent profit and cash records remain uneven.

Revenue rose from $16.5 billion in 2020 to $24.3 billion in 2025, and first-half 2026 sales grew 6.4%. Yet adjusted first-half profit grew only 1.1%, while reported 2025 net income fell to $66 million because major pension, restructuring, and supplier-credit charges obscured the underlying business. Free cash flow was $923 million in 2023, $684 million in 2024, then $421 million in 2025; it recovered to $259 million in first-half 2026 from negative $80 million a year earlier. Replacement auto parts add resilience; industrial demand remains more cyclical.

Business strengthThe network is durable, but debt and dividend demands leave less room for error.

Second-quarter comparable sales rose 2.6% in North American automotive and 6.1% in industrial, showing broad demand. However, June cash of $559 million sat against $4.98 billion of debt, leaving $4.42 billion of net debt; current assets were 1.16 times current liabilities. The $4.25 annual dividend costs about $586 million, nearly all the midpoint of 2026 free-cash-flow guidance. Shares fell 4.7% from 2020 to 2025, but buybacks stopped in 2025 and shares edged higher by June 2026. Debt has risen $2.30 billion since 2020, limiting fresh buybacks.

What could change the storyA clean separation could unlock value, while weak cash conversion would expose the price.

The bull case needs the planned first-quarter 2027 split to reveal stronger stand-alone values and industrial growth to remain near the second quarter’s 6.1% comparable pace. A credible sale of automotive above the reported $10 billion interest could strengthen that case, but management said it was not currently discussing a competitor deal. The bear case appears if annual free cash flow misses $550 million, because the dividend would then consume more than all available cash before debt reduction. At $135.09, investors effectively require adjusted earnings near $7.75 and a successful separation without lasting extra costs.

$135.09 price considered

AI: News

Second-quarter resultsSales beat expectations and cash recovered, but reported profit fell and guidance stayed unchanged.

On July 21, 2026, GPC reported second-quarter sales of $6.54 billion, up 6.0%, and adjusted earnings of $2.15 a share versus $2.10 a year earlier. Reported earnings fell to $1.65 as restructuring and separation costs rose. Management kept adjusted 2026 earnings guidance at $7.50-$8.00 and free-cash-flow guidance at $550-$700 million. Shares closed 2.7% lower that day, but attributing the move solely to results would be unsafe because management also denied active competitor talks during the call.

Takeover report and denialA reported bid lifted the shares sharply, but management later denied active competitor talks.

On July 2, 2026, Reuters relayed a Bloomberg report that O’Reilly had offered cash for GPC’s automotive business at a value of $10 billion or more. GPC shares closed 12.9% higher; the timing supports an association, not proof of sole cause. On July 21, chief executive Will Stengel said GPC was not currently in discussions with any competitor and remained focused on creating two public companies. The report still provides an external value marker, but it is not a confirmed transaction.

Separation stays on scheduleThe planned split remains the main route to unlocking each business’s separate value.

Announced February 17, 2026 and reaffirmed July 21, the plan would separate Global Automotive and Global Industrial into independent public companies in the first quarter of 2027, subject to board and regulatory conditions. GPC said the transaction should be tax-free for United States federal purposes and expects investor days later in 2026. The split could give each business a clearer strategy and capital structure, but $34 million of separation costs had already been recorded in first-half 2026, and completion and benefits remain uncertain.

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$24.30B	$23.49B	$23.09B	$22.10B	$18.87B	$16.54B	$17.52B	$16.83B	$16.31B	$15.34B	—	—	—	—	—	—	—	—	—
Gross profit	$8.94B	$8.52B	$8.29B	$7.74B	$6.63B	$5.65B	$5.86B	$5.52B	$4.91B	$4.60B	$4.56B	$4.59B	$4.22B	$3.78B	$3.61B	$3.25B	$3.01B	$3.27B	$3.22B
Operating expenses	$7.98B	$7.29B	$6.54B	$6.13B	$5.47B	$5.24B	$4.95B	$4.48B	$3.91B	$3.55B	$3.43B	$3.47B	$3.17B	$2.76B	$2.70B	$2.47B	$2.34B	$2.47B	$2.38B
Operating income	—	—	—	—	—	—	—	$1.43B	$1.26B	$1.23B	$1.28B	$1.27B	$1.13B	$1.08B	$980.2M	$839.4M	$701.7M	$860.9M	$882.2M
EBITDAderived	—	—	—	—	—	—	—	$1.66B	$1.43B	$1.38B	$1.42B	$1.42B	$1.27B	$1.18B	$1.07B	$928.7M	$792.1M	$949.6M	$969.9M
Net income	$65.9M	$904.1M	$1.32B	$1.18B	$898.8M	−$29.1M	$621.1M	$810.5M	$616.8M	$687.2M	$705.7M	$711.3M	$685.0M	$648.0M	$565.1M	$475.5M	$399.6M	$475.4M	$506.3M
Basic EPSper diluted share	$0.47	$6.49	$9.38	$8.36	$6.27	-$0.20	$4.26	$5.53	$4.19	$4.61	$4.65	$4.64	$4.43	$4.17	$3.61	$3.01	$2.51	$2.93	$2.99
Diluted EPSper diluted share	$0.47	$6.47	$9.33	$8.31	$6.23	-$0.20	$4.24	$5.50	$4.18	$4.59	$4.63	$4.61	$4.40	$4.14	$3.58	$3.00	$2.50	$2.92	$2.98

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$185.5K disclosed value

Sells (SEC code S)7$2.09M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 26, 2026Form 4 · 10b5-1	Galla Christopher TSVP, GC, and Corp. Secretary	SellCommon Stock	2.3K	$115.00	$268.3K	22.0K
May 5, 2026Form 4 · 10b5-1	Howe James F.President, Motion	SellCommon Stock	415	$104.33	$43.3K	25.6K
May 4, 2026Form 4 · 10b5-1	Howe James F.President, Motion	SellCommon Stock	1.4K	$104.09	$144.9K	26.0K
Dec 17, 2025Form 4 · 10b5-1	Howe James F.President, Motion	SellCommon Stock	1.6K	$128.60	$211.9K	27.4K
Sep 26, 2025Form 4	Krishna NaveenEVP, CIDO	SellCommon Stock	5.3K	$138.12	$732.5K	26.1K

Review ownership filings at SEC.gov ↗

GENUINE PARTS CO (GPC)

Financial charts

Financial statements

Insider buys & sells