Genuine Parts Company (NYSE:GPC) distributes automotive and industrial replacement parts, office products, and electrical/electronic materials in the United States, Canada, Australia, New Zealand, Mexico, and Puerto Rico. GPC has four divisions: Automotive Parts Group [APG], Industrial Parts Group or Motion Industries [MI], Office Products Group or S.P. Richards, and the Electrical Products Group or EIS.
The last year has been a disappointment for GPC shareholders, down 0.6% and underperforming the GICS Distributors subindustry by 3%. The subindustry includes LKQ Corporation (NASDAQ:LKQ) which is an auto parts distributor, and distributors in different market segments such as Pool Corporation (NASDAQ:POOL) and Core-Mark Holding Company, Inc. (NASDAQ:CORE). GPC's weak stock performance is primarily due to poor revenue growth, impacted by challenging market conditions.
Both revenues and profits have been essentially flat for the last three years. According to GPC management, the U.S. sales environment has been challenging, but international operations in Canada, Mexico and Australasia, outperformed with stronger, more positive results.