| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 52 | 473.9x | 17.3x | Around median | |
Growth | 20 | 5.3% | 7.1% | Bottom tier | |
Quality | 52 | 9.7% | 4.5% | Around median | |
Safety | 49 | 3.7x | 2.6x | Around median | |
Capital Return | 67 | 3.42% | 0.06% | Top tier | |
Momentum | 66 | -2.7% | -1.6% | Top tier | |
Sentiment | 75 | 6 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
72% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Genuine Parts Company operates through two main businesses: the global distribution of automotive replacement parts and services through systems that include NAPA and Repco, and the distribution of industrial maintenance, repair, and operations products and solutions through Motion. The industrial business relies heavily on maintenance demand, as maintenance, repair, and operations activity represented approximately 80% of Motion's sales in Q2 FY2026, while the remainder came from more capital-intensive projects. The company intends to separate the two businesses into two independent public companies in Q1 FY2027, and confirmed on July 21, 2026, that it is not in discussions with any competitor regarding a transaction involving the global automotive business.
Q2 FY2026 revenue was approximately $6.5 billion, up nearly 6% year over year, while the financial statements reported gross profit of $2.5 billion, net income of $227.6 million, and diluted earnings per share of $1.65. On an adjusted basis, earnings per share were $2.15 versus $2.10 in the comparable period, and the adjusted gross margin expanded by 20 basis points to 37.9%, but the adjusted EBITDA margin declined by 20 basis points to 8.7%. The difference between reported and adjusted results reflects the exclusion of $93 million in pre-tax costs, including restructuring costs and costs related to separating the two businesses.
The industrial business generated sales of $2.4 billion, up 7%, and EBITDA of $316 million at a margin of 13.1%. North American automotive sales increased 4%, with comparable sales growth of 2.6% and EBITDA of $208 million at a margin of 8.2%, while international automotive sales grew 8% and EBITDA reached approximately $150 million at a margin of 9.4%. Motion therefore delivered the strongest momentum, while the automotive business remained more exposed to consumer pressures and fuel, freight, and labor costs.
The average analyst price target is $145.75, within a wide range of $122 to $170, against a Neutral consensus; the average is below the upper end of the 52-week range of $151.57, while the highest target exceeds that level. A reliable price-to-earnings ratio is not available in the data, and valuation sensitivity appears linked to the contrast between Motion's strength on one hand and automotive business pressures and the costs of separating the two businesses on the other.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue increased by approximately 6% to $6.5 billion, while reported gross profit reached $2.5 billion and net income was $227.6 million. Motion led the momentum, with sales growth of 7% to $2.4 billion and a 10% increase in EBITDA. Pricing and sourcing initiatives also helped expand the adjusted gross margin by 20 basis points to 37.9%.
Reported earnings per share under the financial statements were $1.65, while adjusted earnings per share were $2.15 versus $2.10 in the comparable period. Adjusted results excluded $93 million in pre-tax costs, or $69 million after tax. These amounts included restructuring costs and $16 million in costs related to separating the automotive and industrial businesses.
The company is targeting completion of the separation in Q1 FY2027. As of July 21, 2026, it had completed the independent audit and continued working on the confidential filing of Form 10 with the Securities and Exchange Commission. Management estimated pro forma incremental costs of approximately $250 million for the global automotive business and approximately $100 million for the industrial business.
Automated analysis for informational purposes only — not investment advice.
Management reaffirmed its adjusted earnings per share range of $7.50 to $8.00, representing growth of 5% at the midpoint of the range compared with FY2025. It expects total sales growth of between 3% and 5.5%, with a pricing contribution of approximately 2%. Conversely, it reduced its global automotive revenue forecast for the second half by approximately half a percentage point and included incremental costs of between $20 million and $30 million related to the Iran conflict.
In Q2 FY2026, Motion achieved sales growth of 7% and an EBITDA margin of 13.1%, with growth across 11 of 14 end markets. North American automotive achieved total growth of 4% and an EBITDA margin of 8.2%, but comparable retail sales declined 3%. In international automotive, sales increased 8%, but the EBITDA margin declined by 20 basis points to 9.4% due to labor, rent, and freight pressures.
Comparable sales at company-owned stores increased 4% in Q2 FY2026, while commercial sales grew 5.5%. The NAPA system as a whole achieved 3% growth in sales to end customers, while comparable purchases by independent stores increased by approximately 1.5%. The company is working to extend the sales, pricing, inventory, and technology tools used in company-owned stores to independent owners, after the top-performing quartile of those owners recorded growth of 5%.