Genuine Parts Company — Earnings Quality Grade F
GPC · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 36 days, change +2 days YoY
AR growth 8.6% vs revenue growth 3.5%
Revenue 3.5%, CFFO -28.8%. Cash follows revenue
Expense Quality
Inventory 10.1% vs COGS 2.6%. Normal
CapEx growth -17.2% vs revenue 3.5%. Normal
SG&A/Gross Profit = 80.0%, exceeds 70%
Gross margin 36.8%, change +0.5pp. Stable
Cash Flow Quality
CFFO far exceeds NI (ratio 13.5x). Non-cash charges depressing profits
FCF $0.4B, FCF/NI = 6.38
Accruals ratio = -4.0%. Low accruals
Cash $0.5B covers only 7% of debt $6.5B
Balance Sheet Health
Goodwill+Intangibles $5.0B = 114% of equity. Over 50%
Debt/EBITDA = 8.7x (>4x). Financial stress
Other assets -8.3% vs revenue 3.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 7% YoY. Normal
Manipulation Score
M-Score = -2.63 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10