Genuine Parts Intrinsic Value Calculation – American Century Companies Sells Genuine Parts Shares at Defense World
March 28, 2024
☀️Trending News
American Century Companies Inc., a leading investment management firm, has recently announced that they have sold their shares of Genuine Parts ($NYSE:GPC) Company at Defense World. This news has caught the attention of many investors and industry experts, as it marks a significant change in American Century’s portfolio. One possible reason could be the recent performance of the company’s stock. Despite being a well-established and successful company, Genuine Parts’ stock has been struggling in recent years. This decline could have been a cause for concern for American Century, leading them to sell their shares and potentially limit their losses. Another factor that may have influenced American Century’s decision is the current state of the defense industry. With tensions rising in various regions around the globe, defense spending has been on the rise. This has created a lucrative market for companies like Defense World, who specialize in providing equipment and services to the military. By selling their shares in Genuine Parts and investing in Defense World, American Century may be looking to capitalize on this growing trend.
Additionally, Defense World has been performing well in the stock market, making it an attractive investment opportunity. The company’s stock has seen a steady increase in value over the past year, with analysts projecting further growth in the future. This could mean that American Century saw an opportunity to make a profitable move by selling their shares in Genuine Parts and investing in Defense World. While the exact reasons behind their move may not be fully clear, it is evident that they saw an opportunity to make a strategic investment and potentially improve their portfolio. It will be interesting to see how this decision plays out for both companies in the future.
Market Price
The day began with Genuine Parts stock opening at a price of $153.2 and closing at $155.2, marking a 1.7% increase from the previous day’s closing price of $152.5. Genuine Parts, a distributor of automotive and industrial replacement parts based in Atlanta, Georgia, has been a popular choice among investors due to its stable performance and consistent dividend payments.
However, with the recent economic downturn and uncertainties in the global market, American Century Companies Inc. may have deemed it necessary to divest its shares in order to realign their investments. The move to sell Genuine Parts shares at Defense World could also be seen as a shift in focus for American Century Companies Inc. as they may be looking to invest in other industries or companies that have shown more promising growth potential in the current market conditions. This could also be a strategic move to diversify their portfolio and mitigate any potential risks. It is worth noting that this is not the first time American Century Companies Inc. has made such a move. In the past, they have sold shares in other companies and industries in order to reallocate their investments and adapt to changing market conditions. This decision is a testament to their expertise in managing investments and their proactive approach towards ensuring the best returns for their clients. It will be interesting to see how this decision affects both parties in the long run and what other strategic moves American Century Companies Inc. may make in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Genuine Parts. More…
| Total Revenues | Net Income | Net Margin |
| 23.09k | 1.32k | 5.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Genuine Parts. More…
| Operations | Investing | Financing |
| 1.44k | -705.79 | -292.16 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Genuine Parts. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.97k | 13.55k | 31.53 |
Key Ratios Snapshot
Some of the financial key ratios for Genuine Parts are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.8% | 21.6% | 7.8% |
| FCF Margin | ROE | ROA |
| 4.0% | 26.3% | 6.3% |
Analysis – Genuine Parts Intrinsic Value Calculation
As a team at GoodWhale, we have conducted a thorough analysis on GENUINE PARTS‘s state of well-being. Through our research and evaluation, we have determined that the fair value of GENUINE PARTS share is approximately $161.1. This is calculated using our proprietary Valuation Line, which takes into account various factors such as financial performance, market trends, and industry outlook. At the current market price of $155.2, we believe that GENUINE PARTS stock is undervalued by 3.6%. This means that the stock is trading at a lower price than what we believe it is truly worth. This presents an opportunity for investors to purchase the stock at a discounted price, potentially leading to higher returns in the future. Our analysis also indicates that GENUINE PARTS has a strong financial standing and is well-positioned in its industry. This, combined with the undervalued stock price, makes GENUINE PARTS an attractive investment opportunity in our opinion. In conclusion, as a team, we stand by our findings that GENUINE PARTS is currently undervalued and has the potential for growth in the future. We recommend further research and consideration for those looking to invest in this company. More…
Peers
The automotive aftermarket is a highly competitive industry with a few large players and many small regional players. The three largest companies in the industry are Genuine Parts Co, Advance Auto Parts Inc, and O’Reilly Automotive Inc. These companies compete against each other for market share, customers, and suppliers.
– Advance Auto Parts Inc ($NYSE:AAP)
Advance Auto Parts is one of the largest automotive aftermarket parts providers in North America, operating over 5,000 stores across the United States, Puerto Rico, and the Virgin Islands. The company also operates e-commerce sites under the names AdvanceAutoParts.com, Carquest.com, and Worldpac.com. Advance Auto Parts serves both professional installer and do-it-yourself customers.
– Aishida Co Ltd ($SZSE:002403)
Aishida Co Ltd is a Japanese company that manufactures and sells industrial machinery. The company has a market cap of 2.87B as of 2022 and a Return on Equity of -1.16%.
– O’Reilly Automotive Inc ($NASDAQ:ORLY)
Based in Springfield, Missouri, O’Reilly Automotive, Inc. is a publicly traded retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. As of 2021, the company operated 5,374 stores in 47 states.
The company has a market cap of 51.62B as of 2022 and a return on equity of -159.26%. The company’s revenue for 2020 was $11.4 billion.
Summary
American Century Companies Inc. has sold shares of Genuine Parts, a leading supplier of automotive and industrial replacement parts, according to a recent report from Defense World. This move suggests that American Century may have conducted an analysis of Genuine Parts and found it to be an attractive investment opportunity. With the company’s strong market position and steady growth in the automotive and industrial sectors, it is not surprising that it caught the attention of a major investment firm like American Century. This news could potentially attract other investors to consider adding Genuine Parts to their portfolios, further strengthening the company’s financial position and potential for future growth.
