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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fastenal Co.

Applied Industrial Technologies, Inc.

Pool Corp.

Core & Main, Inc.

MSC Industrial Direct Co., Inc.

Ferguson Plc

W.W. Grainger, Inc.

WESCO International, Inc.

Genuine Parts Co.

UGI Corp.

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 1.65%, its profits have fallen by -24.6%

Underperformed the market in the last 1 year

The stock has generated a return of 1.65% in the last 1 year, much lower than market (S&P 500) returns of 12.94%

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.

3.53%

-0.37

24.52%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.60%

EBIT Growth (5y)

6.44%

EBIT to Interest (avg)

13.98

Debt to EBITDA (avg)

1.54

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

2.77

Tax Ratio

22.94%

Dividend Payout Ratio

61.80%

Pledged Shares

Institutional Holding

93.89%

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

3.91

EV to EBIT

15.39

EV to EBITDA

11.76

EV to Capital Employed

2.50

EV to Sales

0.91

PEG Ratio

Dividend Yield

4.09%

ROCE (Latest)

16.25%

ROE (Latest)

22.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 7.8

RAW MATERIAL COST(Y)

Fallen by -2.39% (YoY

NET SALES(Q)

Highest at USD 6,164.43 MM

OPERATING PROFIT(Q)

Highest at USD 545.57 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.85 %

-16What is not working for the Company

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%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.84 times

CASH AND EQV(HY)

Lowest at USD 878.44 MM

INTEREST(Q)

Highest at USD 45.97 MM

Here's what is working for Genuine Parts Co.

Dividend per share

Highest at USD 7.8 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 6,164.43 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 545.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 8.85 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -2.39% (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

Depreciation

Highest at USD 123.02 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Inventory Turnover Ratio

Lowest at 2.84 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Profit

At USD 707.82 MM has Grown at -24.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 808.45 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 45.97 MM

in the last five periods and Increased by 6.96% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv

Lowest at USD 878.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents