Genuine Parts Co. (GPC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fastenal Co.

Applied Industrial Technologies, Inc.

W.W. Grainger, Inc.

Core & Main, Inc.

UGI Corp.

WESCO International, Inc.

Pool Corp.

MSC Industrial Direct Co., Inc.

Ferguson Plc

Genuine Parts Co.

Beacon Roofing Supply, Inc.

Why is Genuine Parts Co. ?

High Management Efficiency with a high ROCE of 22.17%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.98

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 808.45 MM
NET PROFIT(9M) At USD 707.82 MM has Grown at -24.57%
ROCE(HY) Lowest at 17.5%

With ROCE of 16.25%, it has a expensive valuation with a 2.50 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 8.92%, its profits have fallen by -24.6%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Genuine Parts Co. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Genuine Parts Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Genuine Parts Co.

-17.06%

-0.24

24.76%

S&P 500

22.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.40%

EBIT Growth (5y)

3.50%

EBIT to Interest (avg)

13.98

Debt to EBITDA (avg)

1.54

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

2.66

Tax Ratio

22.94%

Dividend Payout Ratio

869.93%

Pledged Shares

Institutional Holding

95.72%

ROCE (avg)

22.17%

ROE (avg)

27.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.27

EV to EBIT

15.60

EV to EBITDA

10.85

EV to Capital Employed

2.10

EV to Sales

0.79

PEG Ratio

Dividend Yield

4.03%

ROCE (Latest)

13.45%

ROE (Latest)

22.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 7.22

DIVIDEND PAYOUT RATIO(Y)

Highest at 77.79%

RAW MATERIAL COST(Y)

Fallen by -0.44% (YoY

NET SALES(Q)

Highest at USD 6,264.94 MM

-8What is not working for the Company

INTEREST(HY)

At USD 101.57 MM has Grown at 31.01%

ROCE(HY)

Lowest at 1.35%

DEBT-EQUITY RATIO (HY)

Highest at 138.84 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.22 times

Here's what is working for Genuine Parts Co.

Dividend per share

Highest at USD 7.22 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 6,264.94 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend Payout Ratio

Highest at 77.79%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.44% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Genuine Parts Co.

Interest

At USD 101.57 MM has Grown at 31.01%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 138.84 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 7.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio