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

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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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Genuine Parts Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Genuine Parts Co.

-8.27%

-0.24

24.76%

S&P 500

17.45%

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)

2.67

Tax Ratio

22.94%

Dividend Payout Ratio

869.93%

Pledged Shares

Institutional Holding

92.53%

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

3.90

EV to EBIT

16.26

EV to EBITDA

12.25

EV to Capital Employed

2.51

EV to Sales

0.95

PEG Ratio

Dividend Yield

3.13%

ROCE (Latest)

15.41%

ROE (Latest)

20.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

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

2What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 7.55

-28What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 890.75 MM

ROCE(HY)

Lowest at 1.51%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.74 times

INTEREST COVERAGE RATIO(Q)

Lowest at 426.34

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 5.56% (YoY

CASH AND EQV(HY)

Lowest at USD 908.54 MM

DEBT-EQUITY RATIO (HY)

Highest at 145.89 %

INTEREST(Q)

Highest at USD 51.68 MM

OPERATING PROFIT(Q)

Lowest at USD 220.31 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.67 %

PRE-TAX PROFIT(Q)

Lowest at USD -7.05 MM

EPS(Q)

Lowest at USD -4.39

Here's what is working for Genuine Parts Co.

Dividend per share

Highest at USD 7.55 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 172.09 MM

in the last five periods

MOJO Watch

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

Depreciation (USD MM)

Depreciation

At USD 172.09 MM has Grown at 35%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

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

Pre-Tax Profit

At USD -7.05 MM has Fallen at -102.22%

over average net sales of the previous four periods of USD 317.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Cash Flow

Lowest at USD 890.75 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 51.68 MM has Grown at 11.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 426.34

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 2.74 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

Interest

Highest at USD 51.68 MM

in the last five periods and Increased by 11.66% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 220.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 3.67 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -7.05 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD -4.39

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 908.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 145.89 %

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

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 5.56% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales