Genuine Beneish M Score

GPC -  USA Stock  

USD 139.18  3.14  2.31%

This module uses fundamental data of Genuine Parts to approximate the value of its Beneish M Score. Genuine Parts M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Genuine Parts Piotroski F Score and Genuine Parts Altman Z Score analysis.
  
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Genuine Parts Debt Current is projected to increase significantly based on the last few years of reporting. The past year's Debt Current was at 184.61 Million. The current year Long Term Debt to Equity is expected to grow to 0.76, whereas Total Debt is forecasted to decline to about 2.8 B. Genuine Parts Interest Coverage is projected to decrease significantly based on the last few years of reporting. The past year's Interest Coverage was at 5.09. The current year Long Term Debt to Equity is expected to grow to 0.76, whereas Calculated Tax Rate is forecasted to decline to 42.28.
At this time, it appears that Genuine Parts is an unlikely manipulator. The earnings manipulation may begin if Genuine Parts' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Genuine Parts executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Genuine Parts' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.82
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.13Focus
Asset QualityN/AFocus
Expense Coverage0.93Focus
Gross Margin Strengs1.02Focus
Accruals Factor0.93Focus
Depreciation Resistance0.93Focus
Net Sales Growth1.0Focus
Financial Leverage Condition0.95Focus

Genuine Parts Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Genuine Parts' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues19 B18.9 B
Slightly Up
Increasing
Slightly volatile
Selling General and Administrative Expense4.8 B5.2 B
Notably Down
Increasing
Slightly volatile
Net Cash Flow from Operations1.3 B1.3 B
Fairly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion257.1 M291 M
Fairly Down
Increasing
Slightly volatile
Total Assets13.5 B14.4 B
Notably Down
Increasing
Slightly volatile
Property Plant and Equipment Net1.9 B2.3 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade ReceivablesB1.8 B
Fairly Up
Increasing
Slightly volatile
Total Liabilities9.8 B10.8 B
Moderately Down
Increasing
Slightly volatile
Current Assets7.7 B7.8 B
Slightly Down
Increasing
Slightly volatile
Assets Non Current5.8 B6.6 B
Fairly Down
Increasing
Slightly volatile
Current Liabilities6.1 B6.6 B
Significantly Down
Increasing
Slightly volatile
Liabilities Non Current3.7 B4.3 B
Fairly Down
Increasing
Slightly volatile
Total Debt2.8 B3.2 B
Fairly Down
Increasing
Slightly volatile
Debt Current189.5 M184.6 M
Fairly Up
Increasing
Stable
Debt Non Current2.6 B3.2 B
Significantly Down
Increasing
Slightly volatile
Operating IncomeB1.2 B
Fairly Down
Decreasing
Stable
Gross Margin0.360.352
Fairly Up
Increasing
Slightly volatile

Genuine Parts Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Genuine Parts' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Genuine Parts in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Genuine Parts' degree of accounting gimmicks and manipulations.

About Genuine Parts Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

5.15 Billion

Share
Genuine Parts Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 5.47 Billion

Genuine Parts Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Genuine Parts. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues16.31 B16.83 B17.52 B16.54 B18.87 B18.96 B
Total Assets12.41 B12.68 B14.65 B13.44 B14.35 B13.53 B
Current Assets7.31 B7.58 B7.94 B7.11 B7.76 B7.74 B
Assets Non Current5.1 B5.11 B6.71 B6.33 B6.6 B5.78 B
Total Liabilities8.95 B9.21 B10.95 B10.22 B10.85 B9.78 B
Current Liabilities5.47 B5.9 B6.39 B5.89 B6.58 B6.08 B
Total Debt3.25 B3.14 B4.18 B3.47 B3.2 B2.8 B
Debt Current694.99 M711.15 M624.04 M160.53 M184.61 M189.47 M
Debt Non Current2.55 B2.43 B3.56 B3.31 B3.2 B2.61 B
Operating Income998.54 M1.04 B910.91 M414.94 M1.16 B1.03 B

About Genuine Parts Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Genuine Parts's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Genuine Parts using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Genuine Parts based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials. The company was incorporated in 1928 and is headquartered in Atlanta, Georgia. Genuine Parts operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 52000 people.

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Please check Genuine Parts Piotroski F Score and Genuine Parts Altman Z Score analysis. Note that the Genuine Parts information on this page should be used as a complementary analysis to other Genuine Parts' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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When running Genuine Parts price analysis, check to measure Genuine Parts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Genuine Parts is operating at the current time. Most of Genuine Parts' value examination focuses on studying past and present price action to predict the probability of Genuine Parts' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Genuine Parts' price. Additionally, you may evaluate how the addition of Genuine Parts to your portfolios can decrease your overall portfolio volatility.
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Is Genuine Parts' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Genuine Parts. If investors know Genuine will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Genuine Parts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Genuine Parts is measured differently than its book value, which is the value of Genuine that is recorded on the company's balance sheet. Investors also form their own opinion of Genuine Parts' value that differs from its market value or its book value, called intrinsic value, which is Genuine Parts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Genuine Parts' market value can be influenced by many factors that don't directly affect Genuine Parts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Genuine Parts' value and its price as these two are different measures arrived at by different means. Investors typically determine Genuine Parts value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Genuine Parts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.