Genuine Parts Stock Fair Value – Genuine Parts Co. Stock Rises Thursday, Lags Market Performance
November 3, 2023
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On Thursday, Genuine Parts ($NYSE:GPC) Co. (GPC) saw its stock price rise, though it lagged behind overall market performance. Genuine Parts Co. is a leading global distributor of automotive and industrial parts, offering a wide portfolio of products ranging from electrical accessories to fasteners and engine components. The company has become a trusted source for OEM replacement parts, as well as providing aftermarket parts and services to the automotive and industrial sector. Despite its strong reputation, GPC’s stock has not been able to keep up with the performance of the market as a whole on Thursday.
Despite the increase, GPC’s stock was still unable to reach the expectations set by investors. Analysts attribute this to a lack of meaningful new developments for the company in recent weeks, as well as concerns about the automotive industry in general. Investors will be hoping for a sustained increase in performance in the coming days and weeks, in order to recoup Thursday’s losses.
Share Price
Thursday saw GENUINE PARTS stock rising 1.5%, with its opening price set at $129.6 and closing at $130.7. This was up from its previous closing price of 128.8. Despite the rise, it was still lagging behind the overall market performance on Thursday. This could be partly attributed to the company’s prolonged struggle in achieving profitable growth, which has weighed on its stock in recent years.
However, investors are optimistic about the company’s future prospects with its strong portfolio of products and services. 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 |
| 22.88k | 1.21k | 5.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Genuine Parts. More…
| Operations | Investing | Financing |
| 1.13k | -366.91 | -737.16 |
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 |
| 16.94k | 12.86k | 28.98 |
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 |
| 7.2% | 17.8% | 7.3% |
| FCF Margin | ROE | ROA |
| 3.2% | 26.3% | 6.2% |
Analysis – Genuine Parts Stock Fair Value
At GoodWhale, we recently conducted an analysis of GENUINE PARTS‘ overall wellbeing. Our proprietary Valuation Line showed us that the intrinsic value of GENUINE PARTS’ share is around $160.5. Surprisingly, we found that GENUINE PARTS is currently trading at $130.7, making it undervalued by 18.6%. This presents a great buying opportunity for investors, so they should consider investing in GENUINE PARTS for the long-term. More…
Peers
The automotive aftermarket is a highly competitive industry with a few large players and many small regional players. The three largest companies in the industry are Genuine Parts Co, Advance Auto Parts Inc, and O’Reilly Automotive Inc. These companies compete against each other for market share, customers, and suppliers.
– Advance Auto Parts Inc ($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
Shares of Genuine Parts Company rose Thursday, but still failed to outpace the broader market. Analysts are generally bullish on the stock, citing its solid earnings track record and well-established brand. The company has seen consistent revenue growth, with sales increasing in the last three fiscal years. Its balance sheet is strong, with an above-average level of liquidity and a debt-to-equity ratio below industry average.
Price-earnings ratios are also attractive, making Genuine Parts an attractive option for long term investors. Fundamental factors and sentiment analysis indicate that this stock should continue to outperform in the short and long-term.
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