GENUINE PARTS CO

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 2✗ 26▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS22.7x

  ✗Graham<= 15x

  Price-to-Book Ratio3.8x

  ✗Graham<= 1.5x

  P/E x P/B87.30

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 262.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value1.2%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.2%, ROC=8.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS262.4x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)19.1x

  ✗Dreman< 8x

  Price / Book Value per Share3.8x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=262.4x, OE Yield=0.8%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=262.4x, FCF Yield=2.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=262.4x, P/B=3.8x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-51.6% (IV=$81.35 vs Price=$123.34)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share40.3x

  ✗Ackman<= 25

  Price vs. Trailing Low117% of trailing low ($105.75)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+0.18%; #3140/6340 (top 49.5%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.2734; #3820/6449 (top 59.2%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS262.4x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E-0.17

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+44.8%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+1.4898; #1342/5247 (top 25.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+4.49%; #1681/4519 (top 37.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+14.72%; #1608/6202 (top 25.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability6% pass✓ 10✗ 25▾

  15 of 16 flag GPC's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)20/21 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)116.6%

  ✓Graham>= 33% growth

  Net Income Positive (10+ years)20/21 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)21.8%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)8.5% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$134.1M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)0.54

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 262.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-47.6%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE0.7%

  ✗Lynch> 15%

  EBIT / Enterprise Value1.2%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.2%, ROC=8.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets0.32%

  ✓PiotroskiROA > 0

  ROA Change YoY4.69% -> 0.32% (delta: -4.37%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=4.28%, ROA=0.32%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY36.3% -> 36.8%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-0.0%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity0.7%

  ✗Dreman> 12%

  Margin of SafetyP/E=262.4x, P/B=3.8x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity17.4% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-51.6% (IV=$81.35 vs Price=$123.34)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency20/21 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue

  ✗Ackman>= 15%

  Net Income / Shareholders Equity0.7%

  ✗Ackman>= 15%

  5-Year EPS CAGR-47.6% CAGR over 4 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trend

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+0.18%; #3140/6340 (top 49.5%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+43.70%; #844/3702 (top 22.8%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity+0.67%; #2860/5226 (top 54.7%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0259; #1730/5884 (top 29.4%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-47.6% over 4 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years9/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag GPC's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current AssetsLT Debt $4.5B vs NCA $2.1B

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.87, IC: 1.3x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.02

  ✗Lynch< 0.33

  Cash - Long-term Debt$-3.7B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change19.41% -> 16.82%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.22

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.02

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.02

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=1.3x, D/EBITDA=4.9x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.02

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.0157; #3240/4210 (top 77.0%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation models10% pass✓ 1✗ 9▾

  Models split on GPC at $123.34 — fair values range $15.15–$240.42

  Graham fair value$18.44

  ✗Graham-568.9% margin vs $123.34

  Buffett fair value$15.15

  ✗Buffett-714.1% margin vs $123.34

  Greenblatt fair value$64.12

  ✗Greenblatt-92.4% margin vs $123.34

  Dreman fair value$81.35

  ✗Dreman-51.6% margin vs $123.34

  Munger fair value$36.56

  ✗Munger-237.4% margin vs $123.34

  Pabrai fair value$25.31

  ✗Pabrai-387.3% margin vs $123.34

  Akre fair value$240.42

  ✓Akre+48.7% margin vs $123.34

  Marks fair value$73.68

  ✗Marks-67.4% margin vs $123.34

  Ackman fair value$46.57

  ✗Ackman-164.8% margin vs $123.34

  Templeton fair value$92.43

  ✗Templeton-33.4% margin vs $123.34
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag GPC's efficiency — Graham, Greenblatt, Piotroski +4 more

  Current Ratio1.22

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)22.6%

  ✓Buffett> 10%

  ROIC - WACC+12.6%

  ✓BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)8.6%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.16 -> 1.08

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.22x -> 1.17x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.22

  ✗Dreman> 1.5

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 12 FAIL · 2 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (3/9)✓BuffettPASS (4/9)✗LynchFAIL (1/7)✗GreenblattRank #1702•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (1/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)✓AckmanPASS (4/9)✗TempletonFAIL (3/8)•SleepNEUTRAL (4/6)✗AsnessFAIL (Rank #1565/2370 (Top 66.0%))✗NeffFAIL (3/6)✗SchlossFAIL (3/7)✗OshaughnessyFAIL (Rank #340/963 (Top 35.3%))
• Growth25% pass✓ 4✗ 9▾

  6 of 8 flag GPC's growth — Lynch, Dreman, Ackman +3 more

  EPS Growth (3-yr avg, 10-yr window)116.6%

  ✓Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 262.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-47.6%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 9.6% vs Rev: 5.3%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction$2.25 (2004) -> $0.47 (2025)

  ✗DremanPositive over recent years

  EPS CAGR-7.2% CAGR over 21 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency20/21 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth3.5%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR-47.6% CAGR over 4 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trend

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR8.0%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-47.6% over 4 years

  ✗Neff7%-20% annualized
• Cash Flow50% pass✓ 7✗ 5▾

  5 of 10 pass — Buffett, Dreman, Pabrai +2 more object

  Free Cash Flow Proxy$134.1M

  ✗BuffettPositive and growing

  FCF Positive and Growing$762.8M

  ✓LynchPositive and growing

  Operating Cash Flow$890.8M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=4.28%, ROA=0.32%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)19.1x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=262.4x, FCF Yield=2.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive18/18 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap4.5%

  ✓Ackman>= 4%

  Price / FCF per Share40.3x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency21/21 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$762.8M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+4.49%; #1681/4519 (top 37.2%)

  ✗OshaughnessyTop 10% of eligible cross-section