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Genuine Parts Company (NYSE:GPC) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of GPC, it is a financially-healthy , dividend-paying company with a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Genuine Parts here.
Proven track record with adequate balance sheet and pays a dividend
Over the past year, GPC has grown its earnings by 25%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 22%, which is what investors like to see! GPC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that GPC manages its cash and cost levels well, which is an important determinant of the company’s health. GPC appears to have made good use of debt, producing operating cash levels of 0.31x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
GPC is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Genuine Parts, I've put together three important aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for GPC’s future growth? Take a look at our free research report of analyst consensus for GPC’s outlook.
- Valuation: What is GPC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GPC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GPC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.