Genuine Parts Stock Fair Value Calculation – Genuine Parts Company Retains Buy Rating Despite New Areas Of Concern
November 23, 2023
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Genuine Parts ($NYSE:GPC) Company (GPC) has been buy rated despite some new areas of concern that have come to light recently. GPC is a publicly traded company, best known for its automotive parts and services and its industrial products and services. They view the company as resilient and well-positioned to benefit from trends in the automotive and industrial sectors. Analysts also point to the company’s strategy of diversifying beyond automotive and industrial products, such as their recent investment in the electric vehicle market.
In addition, GPC’s strong balance sheet and free cash flow have been touted by analysts. The company also has several initiatives to drive growth, from increasing its e-commerce presence to investing in new technologies. Overall, analysts remain bullish on Genuine Parts Company and continue to recommend it as a buy. Despite the emergence of new areas of concern, analysts are confident in the company’s ability to navigate these issues and remain competitive in a crowded market. As such, investors should continue to consider GPC a good opportunity for long-term growth.
Stock Price
The stock opened at $138.2 and closed at $137.8, representing an increase of 0.2% from the previous closing price of $137.5. The company has seen a steady increase in its stock prices in recent months, driven by strong sales and a healthy balance sheet.
However, new areas of concern have been raised, particularly concerning the company’s ability to compete in the highly competitive automotive parts industry. Despite these new challenges, analysts remain confident in the company’s long-term prospects and have maintained their rating of “buy”. They are encouraged by GENUINE PARTS‘ recent strategic moves to enter new markets and their commitment to developing innovative products that enhance customer satisfaction and loyalty. As the company continues to navigate these new challenges, investors will be watching to see how the company responds. With its continued commitment to providing quality products and customer service, GENUINE PARTS looks well positioned to remain a leader in the automotive parts industry. 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 |
| 23.03k | 1.25k | 5.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Genuine Parts. More…
| Operations | Investing | Financing |
| 1.3k | -500.71 | -779.95 |
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 |
| 17.02k | 12.82k | 29.86 |
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 |
| 7.7% | 16.7% | 7.5% |
| FCF Margin | ROE | ROA |
| 3.7% | 26.1% | 6.3% |
Analysis – Genuine Parts Stock Fair Value Calculation
GoodWhale has conducted an analysis of GENUINE PARTS‘s financials and has determined that the intrinsic value of GENUINE PARTS’s share is around $160.5. This calculation was completed using GoodWhale’s proprietary Valuation Line. At this time, GENUINE PARTS stock is being traded at $137.8, representing a fair price, yet one that is undervalued by 14.1%. More…
Peers
The automotive aftermarket is a highly competitive industry with a few large players and many small regional players. The three largest companies in the industry are Genuine Parts Co, Advance Auto Parts Inc, and O’Reilly Automotive Inc. These companies compete against each other for market share, customers, and suppliers.
– Advance Auto Parts Inc ($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
Genuine Parts Company (GPC) has been rated as a ‘Buy’ by analysts despite new concerns such as the impact of an aging population, increased competition in certain product categories, and a lack of growth opportunities in North America. Analysts have noted the company’s strong balance sheet, low debt levels, and long track record of dividend payout, which make GPC a relatively safe investment. As such, they recommend investors purchase GPC shares with a long-term horizon in mind.
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