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US Equities · Finance research note

GPC — Genuine Parts Company

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 5.77%
Profit Margins 0.24%
Return on Equity 1.34%
Return on Assets 4.54%
Free Float 0.14B
Dividend Yield 3.76%
Short Int % Utilisation 6.29%

2.2 Growth

Metric Value
Revenue Growth 6.8%
Free Cash Flow 0.76B
EBITDA 9.72 (Ratio)
Enterprise Value 19.78B
EV/Revenue 0.8
EV/EBITDA 9.72

Revenue growth of 6.8% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 7.19%
Risk / Std Dev (Ann.)* 32.93%
1-Year Price Return* 1.50%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $135.03
52-Week Range $90.78 – $151.57
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $24.30B $23.49B
Net income Reported net income $65.94M $904.08M
Total assets Year-end reported balance $20.80B $19.28B
Shareholders’ equity Year-end reported balance $4.42B $4.34B
Net margin Net income ÷ revenue 0.27% 3.85%
Asset turnover Revenue ÷ total assets 1.1685x 1.2180x
Equity multiplier Total assets ÷ shareholders’ equity 4.7017x 4.4457x
ROE Net margin × asset turnover × equity multiplier 1.49% 20.84%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: The modelled terminal-year FCFF is non-positive, so a perpetuity valuation would not be reliable. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $132.99
Market capitalisation $18.33B
Revenue $24.30B
EBIT $215.67M
Reported free cash flow $420.92M
FCF yield 2.30%
Net debt / EBITDA 8.04x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:35:32.797084 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -30.92% -16.06%
Adjusted R² 0.17 0.29
Annualised residual volatility 27.34% 25.13%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.63 (3.91) 1.08 (6.34)
Size (SMB) 0.79 (3.63) 0.58 (2.68)
Value (HML) 0.41 (2.17) -0.32 (-1.50)
Profitability (RMW) NM 0.48 (2.66)
Investment (CMA) NM 1.54 (4.92)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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