Last Updated: 19 Sep 2024
Executive Summary
Genuine Parts Co (GPC) is a leading distributor of automotive and industrial replacement parts, office products, and electrical/electronic materials. The company has a strong financial position with a market capitalization of $19.24 billion and an EBITDA of $2.13 billion. GPC's trailing P/E ratio of 15.98 is in line with its industry average. The company has a dividend yield of 0.029%, which is below the industry average.
Company Overview
GPC was founded in 1928 and is headquartered in Atlanta, Georgia. The company operates through a network of over 2,600 stores in the United States, Canada, Mexico, and Australia. GPC's products are sold to a variety of customers, including automotive repair shops, industrial businesses, and office supply stores.
Fundamental Analysis
GPC's financial performance has been solid in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 3.5% over the past five years. GPC's net income has also grown at a CAGR of 4.2% over the same period. The company's profit margin is 5.24%, which is in line with its industry average.
GPC has a strong balance sheet with $2.3 billion in cash and equivalents and $3.2 billion in long-term debt. The company's debt-to-equity ratio is 0.54, which is below the industry average. GPC's return on equity (ROE) is 28.1%, which is above the industry average.
Technical Analysis
GPC's stock price has been trading in a range between $122.86 and $162.12 over the past 52 weeks. The stock is currently trading at $138.09, which is near the bottom of its 52-week range. The stock's 50-day moving average is $139.49, and its 200-day moving average is $144.05.
Short Term Outlook
GPC's stock price is likely to remain range-bound in the short term. The stock's technical indicators are mixed, with the 50-day moving average above the 200-day moving average but the stock price below its 50-day moving average. The stock's price-to-earnings ratio is also below its industry average, which could make it attractive to value investors.
Long Term Outlook
GPC's long-term outlook is positive. The company is a leader in its industry and has a strong financial position. The company's revenue and earnings are expected to continue to grow in the years to come.
Analyst Recommendations
The majority of analysts have a hold rating on GPC's stock. Two analysts have a strong buy rating, two have a buy rating, and ten have a hold rating. The average analyst target price for GPC's stock is $153.66.
