Genuine Parts Company (GPC) Is A Stock You Should Watch

As of Friday close, Genuine Parts Company’s (NYSE:GPC) stock was down -$2.59, moving down -1.57 percent to $162.07. The average number of shares traded per day over the past five days has been 2,558,660 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.92 fall in that time frame. In the last twenty days, the average volume was 1,595,310, while in the previous 50 days, it was 1,199,506.

Since last month, GPC stock retreated -9.80%. Shares of the company fell to $159.88 on 03/15/23, the lowest level in the past month. A 52-week high of $187.73 was reached on 02/27/23 after having rallying from a 52-week low of $124.85. Since the beginning of this year, GPC’s stock price has dropped by -6.59% or -$11.44, and marked a new high 9 times. However, the stock has declined by -13.67% since its 52-week high.

Valuation Metrics

Right now, Genuine Parts Company (GPC) has a P/E ratio of about 19.50. The stock’s beta is 0.92. Besides these, the trailing price-to-sales (P/S) ratio of 1.05, the price-to-book (PB) ratio of 6.03, and the price-to-cash flow ratio of 36.63 may also be considered.

The latest dividend of $0.95 per share was paid out, which is 6.15% more than last year’s $0.8950. On Tuesday February 21 2023, a $0.0550 dividend increase was announced.

Financial Health

In the three months ended September 29, Genuine Parts Company’s quick ratio stood at 0.60, while its current ratio was 1.10, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.81, and the total debt-to-equity ratio was 0.88. On the profitability front, the trailing twelve-month gross margin is 35.00% percent. In the year ended September 29, operating margins totaled 7.30%. Based on annual data, GPC earned $7.74 billion in gross profit and brought in $22.1 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 17.20%. Return on equity (ROE) for the past 12 months was 32.20%.

In Genuine Parts Company’s quarter-end financial report for September 29, it reported total debt of $3.08 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. GPC’s revenue rose 13.04% to $5.68 billion during the quarter, while net income inched up to $5.52 billion. While analysts expected Genuine Parts Company to report $2.05 quarterly earnings, the actual figure was $2.23 per share, beating the consensus estimate by 8.80%. During the quarter, the company generated $435.56 million in EBITDA. The liabilities of Genuine Parts Company were 12.69 billion at the end of its most recent quarter ended September 29, and its total debt was $4.04 billion. The value of shareholders’ equity is $140.81 million.

Technical Picture

This quick technical analysis looks at Genuine Parts Company’s (GPC) price momentum. With a historical volatility rate of 15.47%, the RSI 9-day stood at 31.61% on 17 March.

With respect to its five-day moving average, the current Genuine Parts Company price is down by -0.56% percent or -$0.92. At present, GPC shares trade -9.53% below its 20-day simple moving average and -0.17% percent below its 100-day simple moving average. However, the stock is currently trading approximately -5.74% below its SMA50 and +18.53% above its SMA200.

Stochastic coefficient K was 16.18% and Stochastic coefficient D was 15.63%, while ATR was 3.75. Given the Stochastic reading of 11.15% for the 14-day period, the RSI (14) reading has been calculated as 35.80%. As of today, the MACD Oscillator reading stands at -1.52, while the 14-day reading stands at -4.34.