Morningstar Rating

Stock Research and Analysis

by Adam Fleck, CFA

Bulls Say

Genuine Parts has generated consistent free cash flow for decades, enabling more than 50 years of consecutive dividend growth.
GPC can create value through acquisitions, since it can drive scale efficiencies by acquiring subscale players in the fragmented industrial marketplace.
Genuine Part's automotive segment should benefit from an increase in the average age (roughly 11 years) of vehicles on the road in the U.S. and Australia, plus any increase in vehicle miles driven. Read more 

Bears Say

Rising new vehicle sales could increase the scrappage rates for existing vehicles and reduce demand for aftermarket replacement parts.
Motion Industries' sales have decelerated because of declining demand in cyclical MRO end markets, such as mining. It is uncertain whether this demand will return anytime soon.
Intermediary distribution services could be disrupted as more vertically integrated competitors generate high returns on new invested capital from aggressive store expansion. Read more 

Management

We assign Genuine Parts a Standard stewardship rating. We believe management has delivered solid execution, both in efficiently operating its own businesses and in integrating various tuck-in acquisitions over the past few decades. The firm has a solid   Read more 

Profile

Genuine Parts distributes automotive (53% of sales, including Exego) and industrial (31%) replacement parts, electrical/electronic products (12%), and office products (4%).  Read more 

Plenty of Roadway for Auto-Parts Retailers 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.