Genuine Operating Margin

GPC
 Stock
  

USD 159.97  0.62  0.39%   

Genuine Parts fundamentals help investors to digest information that contributes to Genuine Parts' financial success or failures. It also enables traders to predict the movement of Genuine Stock. The fundamental analysis module provides a way to measure Genuine Parts' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Genuine Parts stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
The current year Operating Margin is expected to grow to 6.95.

Genuine Operating Margin Analysis

Genuine Parts' Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Genuine Parts Operating Margin

6.95

Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
More About Operating Margin | All Equity Analysis

Current Genuine Parts Operating Margin

    
  9.14 %  
Most of Genuine Parts' fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Genuine Parts is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Genuine Operating Margin Driver Correlations

Understanding the fundamental principles of building solid financial models for Genuine Parts is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Operating Margin. Since Genuine Parts' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Genuine Parts' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Genuine Parts' interrelated accounts and indicators.

Genuine Operating Margin Historical Pattern

Today, most investors in Genuine Parts Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Genuine Parts' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's operating margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Genuine Parts operating margin as a starting point in their analysis.
   Genuine Parts Operating Margin   
Share
       Timeline  
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Compare to competition

Based on the recorded statements, Genuine Parts has an Operating Margin of 9.14%. This is 42.81% higher than that of the Consumer Cyclical sector and 218.86% lower than that of the Specialty Retail industry. The operating margin for all United States stocks is notably lower than that of the firm.

Genuine Operating Margin Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Genuine Parts' direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Genuine Parts could also be used in its relative valuation, which is a method of valuing Genuine Parts by comparing valuation metrics of similar companies.
Genuine Parts is currently under evaluation in operating margin category among related companies.

Genuine Parts Current Valuation Drivers

We derive many important indicators used in calculating different scores of Genuine Parts from analyzing Genuine Parts' financial statements. These drivers represent accounts that assess Genuine Parts' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Genuine Parts' important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee12.85 K16.21 K11.29 K(580)17.28 K17.97 K
Revenue Per Employee339.77 K374.7 K352.59 K329.85 K362.89 K408.19 K
Average Assets10.12 B12.67 B14.47 B13.66 B14.09 B13.2 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA1.22 B1.38 B1.18 B550.76 M1.55 B1.51 B
Earnings Before Interest Taxes and Depreciation Amortization USD1.22 B1.38 B1.18 B550.76 M1.55 B1.51 B
Earnings before Tax1.01 B1.06 B833.89 M186.87 M1.2 B1.04 B
Average Equity3.32 B3.52 B3.63 B3.12 B3.31 B3.62 B
Enterprise Value14.86 B16.65 B19.2 B17.28 B22.26 B20.57 B
Free Cash Flow679.56 M933.05 M638.52 M1.88 B1.02 B1.06 B
Invested Capital6.31 B6.05 B8.37 B6.61 B6.93 B6.63 B
Invested Capital Average4.48 B6.17 B8.12 B7.25 B6.61 B6.36 B
Market Capitalization13.93 B14.09 B15.43 B14.49 B19.97 B18.59 B
Tangible Asset Value8.86 B9.14 B10.86 B10.02 B11.03 B10.51 B
Working Capital1.84 B1.67 B1.54 B1.22 B1.17 B1.38 B

Genuine Parts ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Genuine Parts' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Genuine Parts' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Genuine Fundamentals

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.
Last ReportedProjected for 2022
Operating Margin 6.16  6.95 
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 53000 people.

Genuine Parts Investors Sentiment

The influence of Genuine Parts' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Genuine. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Genuine Parts' public news can be used to forecast risks associated with investment in Genuine. The trend in average sentiment can be used to explain how an investor holding Genuine can time the market purely based on public headlines and social activities around Genuine Parts. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Genuine Parts' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Genuine Parts' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Genuine Parts' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Genuine Parts.

Genuine Parts Implied Volatility

    
  50.23  
Genuine Parts' implied volatility exposes the market's sentiment of Genuine Parts stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Genuine Parts' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Genuine Parts stock will not fluctuate a lot when Genuine Parts' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Genuine Parts in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Genuine Parts' short interest history, or implied volatility extrapolated from Genuine Parts options trading.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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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.
Quarterly Earnings Growth YOY
0.93
Market Capitalization
22.5 B
Quarterly Revenue Growth YOY
0.17
Return On Assets
0.0642
Return On Equity
0.32
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.