Genuine Parts Company (GPC): fair value, margin of safety and Wheel Score

Is GPC undervalued?

GPC closed at 133.51 on 16 Oct 2026, more than 30% above the GLS average fair value of 36.16. Only 0 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.

The 9 models disagree widely: GLS Growth gives 0.6965 while 10 Cap gives 126.87. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files GPC under Defensive: a low beta, a dividend and positive earnings.

Nine valuation models for GPC

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health GPC scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 3.5 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 0.5%, ROE 1.5%, ROA 0.3% - with debt at 1.87 times equity and a free-cash-flow yield of 4.1%.

The dividend yield is 3.16% at a payout ratio of 1753%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from North America Automotive 39%, Industrial 37%, International Automotive 24% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 5/10 and Congressional trading 10/10 on the GLS smart-money scales.

Wheel Score 61: Fair

GPC scores 61 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 18/20, Moat 5/15, Premium 20/20, Stability 18/20. Value (0/25) is where the points are missing.

Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 12,660 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 1.1M shares a day on a market cap of $18.4B, with a beta of 0.68 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 18 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

Genuine Parts Company reports earnings on 20 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Auto - Parts

The 12 companies below are the closest to Genuine Parts Company by market cap within the Auto - Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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