Genuine Parts CoMEX:GPC 76 Operating Margin % is 5.49% as of Mar. 2026, which is 11% below its 10-year median of 6.15. GuruFocus rates MEX:GPC with a GF Score™ of 76/100 and a GF Value™ of MXN3,215.96. The stock has 6 warning signs investors should review. Among 1,324 Vehicles & Parts companies, Genuine Parts Co ranks better than 50.23% on this metric.
Genuine Parts Co (MEX:GPC) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Genuine Parts Co Operating Margin % Related Terms
Genuine Parts Co Operating Margin % Historical Data
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The historical data trend for Genuine Parts Co's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:GPC vs APTV, AUR, MOD: Operating Margin % Comparison
For the Auto Parts subindustry, Genuine Parts Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Genuine Parts Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Genuine Parts Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Genuine Parts Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Genuine Parts Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Genuine Parts Co (MEX:GPC) has a Operating Margin % of 5.49% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Genuine Parts Co and its competitors. This is 11% below median its historical median of 6.15. Over the past decade, Genuine Parts Co's Operating Margin % has ranged from 4.92 to 7.57. According to the industry distribution chart, Genuine Parts Co ranks #659 out of 1324 companies in the Vehicles & Parts industry, placing it in the top 49.8%.
Is Genuine Parts Co's Operating Margin % too high?
Genuine Parts Co's current Operating Margin % of 5.49% is 11% below median its 10-year median of 6.15. Over the past 10 years, this metric has ranged from a low of 4.92 to a high of 7.57. The Vehicles & Parts industry median Operating Margin % is 4.87. Genuine Parts Co's value of 5.49% is 12.8% above this industry median. Based on the distribution chart, Genuine Parts Co ranks #659 out of 1324 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Genuine Parts Co has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Genuine Parts Co's Operating Margin % compare to APTV and AUR?
According to the Vehicles & Parts industry distribution chart, Genuine Parts Co ranks #659 out of 1324 companies for Operating Margin %. This puts Genuine Parts Co in the upper half of its industry. The industry median Operating Margin % is 4.87. Genuine Parts Co's value of 5.49% is 12.8% above this benchmark. Historically, Genuine Parts Co's own Operating Margin % has ranged from 4.92 to 7.57 over the past decade. While the company's 10-year median is 6.15 vs. the industry median of 4.87, Genuine Parts Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.87, based on 1,324 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Genuine Parts Co's current Operating Margin % of 5.49% is 12.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Genuine Parts Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Genuine Parts Co's current Operating Margin % is 5.49%, which is 11% below median its own 10-year median of 6.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Genuine Parts Co stock overvalued right now?
Genuine Parts Co (MEX:GPC) has a current Operating Margin % of 5.49%. The stock's GF Value™ is MXN3,215.96, compared to a current price of MXN2,550.00 — trading 20.7% below its estimated fair value. The current Operating Margin % is 5.49%, which is 11% below median its 10-year median of 6.15 and 12.8% above the Vehicles & Parts industry median of 4.87. Genuine Parts Co's overall GF Score™ is 76/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Genuine Parts Co (MEX:GPC), the current Operating Margin % is 5.49% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Genuine Parts Co (MEX:GPC) Overvalued in 2026?
Based on GuruFocus' analysis, Genuine Parts Co stock appears to be undervalued.
The current stock price of MXN2,550.00 is trading 20.7% below its estimated GF Value™ of MXN3,215.96.
Key valuation signals for MEX:GPC:
Operating Margin %: 5.49% (11% below median its 10-year median of 6.15)
GF Value™: MXN3,215.96 vs. price of MXN2,550.00 (20.7% below fair value)
Industry Position: 12.8% above the Vehicles & Parts median (#659 of 1324)
No single metric tells the full story. See the MEX:GPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Genuine Parts sells aftermarket automotive parts (60% of sales) and industrial products (40% of sales) in the United States and internationally. The automotive segment primarily acts as a distributor to its network of 9,800 global retail locations, of which about two-thirds are independently owned and operated. We estimate Genuine serves around 6,000 retail locations in the US operating under the Napa Auto Parts brand, with about 80% of end-market sales derived from professional customers. Its industrial segment, primarily operating under the Motion name in the United States, is a leading distributor of bearings, power transmission, and other industrial products to more than 200,000 maintenance, repair, and original equipment manufacturer customers.
76GF Score
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