Buffett Brain · Research note
Score updated 5 Oct 2026 · analysis from 8 Sept 2026
GPC· Consumer Discretionary
Genuine Parts
Genuine Parts Company struggles with low margins and high leverage, missing Buffett's criteria for a durable moat.
Buffett fit
Weak fit
Owner
25
Durability
47
Management
53
Price
16
Score updated 5 Oct 2026 · analysis from 8 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Genuine Parts Company, the next 10 years would likely involve addressing its high , with a net debt/EBITDA of 8.17, and improving its thin net margin of 0.24%.
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The business faces durability challenges with a 5-year EPS CAGR of -47.68% and an EPS max decline of 92.76%.
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Management has maintained a relatively stable share count with a 5-year CAGR of -0.79% and a yield of 1.5%.
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At a of 212.7, Genuine Parts is significantly overvalued compared to a typical entry point of 8-10% yield.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue of $24.3B indicates a large scale of operations.
- 2Interest coverage ratio of 6.4 suggests some ability to cover interest expenses.
- 3Dividend yield of 4.47% provides income to shareholders.
- 4Share count CAGR of -0.79% indicates slight reduction in shares outstanding.
Concerns
7- 1 of 212.7 indicates extreme overvaluation relative to earnings.
- 2 of 36.17% is below the sector top-quintile cutoff of 53.9%.
- 3Net debt/EBITDA of 8.17 highlights significant risk.
- 45-year EPS CAGR of -47.68% shows declining profitability.
Price history
$127+1.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Genuine Parts Company distributes automotive and industrial replacement parts through its Automotive Parts Group and Industrial Parts Group segments. It serves a wide range of customers, including repair shops, fleet operators, and various industries. Despite its broad customer base, the company reports a of 36.17% and an of 4.42%, both below sector top-quintile thresholds. The unit economics suggest a business with limited and higher operational costs.
How this analysis has moved
The call has held across 3 reviews.
Sep 27, 2026 → Oct 5, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Consumer Discretionary
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