Genuine Parts Company (GPC)
NYSEConsumer DiscretionaryAuto PartsSnapshot 2026-07-07
$128.71+0.04%
Close 2026-07-07 · 1-day change
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Track GPC free→NYSEConsumer DiscretionaryAuto PartsSnapshot 2026-07-07
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Track GPC free→Genuine Parts grows sales about 3% to 5.5% yearly. Free cash flow should stay between $550M and $700M. The company plans to split into two focused businesses, which could unlock value. Profit margins and dividends remain stable.
The separation plan adds risk and complexity. Free cash flow is below target and may stay weak. Sales growth could slow below 3%. Management has been volatile, raising execution concerns.
The stock trades about 25% above our fair value near $103. Analysts expect roughly 4.6% revenue growth. Our view is slightly more cautious on growth and cash flow.
Breaks if: Free cash flow falls below $550M in FY26
Aim to maintain free cash flow within the range of $550 million to $700 million for the fiscal year 2026.
Stated in 3 of last 3 quarters. Free cash flow was $421 million for the twelve months ending December 31, 2025, below the $550 million to $700 million target for 2026. The trajectory shows limited progress towards the stated free cash flow range.
Breaks if: YoY revenue growth falls below 3% in FY26
Focus on achieving total sales growth between 3% and 5.5% for the fiscal year 2026.
Stated in 3 of last 3 quarters. Revenue grew from $5.8 billion in 2025-Q4 to $6.3 billion in 2025-Q3, indicating progress towards the 3% to 5.5% growth target. The trajectory shows delivering on the stated sales growth priority.
Breaks if: Separation plan delayed or abandoned in FY26
Plan to separate the company into two independent, publicly traded companies: Global Automotive and Global Industrial.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Free cash flow $550 million to $700 million for 2026.”
“Free cash flow was $421 million for the twelve months ending December 31, 2025.”
“Free cash flow was $160 million for the first nine months of 2025.”
“The company is reaffirming full-year 2026 guidance: Total sales growth 3% to 5.5%.”
“Sales were $6.0 billion, a 4.1% increase compared to $5.8 billion in the same period of the prior year.”
“Sales were $6.3 billion, a 4.9% increase compared to $6.0 billion in the same period of the prior year.”