Time to take over Genuine Parts is now
 | By Ellen Johnson | Macroaxis Story |
This article is aimed at all current or potential Genuine Parts investors. I will look into why albeit cyclical Genuine Parts disturbance, the long term basic indicators of the company are still strong. Is Genuine Parts valuation justified? Here I will also cover the organization prospective on valuation to give you a better outlook on taking a position in this stock. What is Genuine Parts Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of Genuine Parts to move above current price in 30 days from now is close to 99%. The Genuine Parts Company probability density function shows the probability of Genuine Parts Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, Genuine Parts Company has beta of -0.179 . This indicates as returns on benchmark increase, returns on holding Genuine Parts are expected to decrease at a much smaller rate. During bear market, however, Genuine Parts Company is likely to outperform the market. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. Genuine Parts is significantly underperforming Russell 2000 .
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Reviewed by Michael Smolkin
This firm has 4.52 B in debt with debt to equity (D/E) ratio of 123.3 . This implies that the company may be unable to create cash to meet all of its financial commitments. Genuine Parts dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $1.47 per share. Lets now take a look at Genuine Parts Number of Shares Shorted. Based on recorded statements Genuine Parts Company has 3 M of outstending shares currently sold short by investors. This is 54.26% lower than that of the Consumer Cyclical sector, and 76.93% lower than that of Specialty Retail industry, The Number of Shares Shorted for all stocks is 36.24% higher than the firm. We determine the current worth of Genuine Parts Co using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Genuine Parts based exclusively on its fundamental and basic technical indicators. By analyzing Genuine Parts's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Genuine Parts's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Genuine Parts. We calculate exposure to Genuine Parts's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Genuine Parts's related companies.
Genuine Parts Investment Alerts
Genuine investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Genuine Parts Co performance across your portfolios.Please check all investment alerts for GenuineGenuine Parts Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Genuine value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Genuine Parts competition to find correlations between indicators driving the intrinsic value of Genuine.Genuine Parts Gross Profit
Genuine Parts Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Genuine Parts previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Genuine Parts Gross Profit growth over the last 10 years. Please check Genuine Parts' gross profit and other fundamental indicators for more details.
Going after Genuine Financials
Genuine Parts harnesses its working resources almost 0.0522 (percent), generating $5.0E-4 for each dollar of working resources held by the corporation. A positive assets utilization attests that the company is being slightly more effective with each dollar of working resources it retains. Simply put assets utilization of Genuine Parts shows how effective it operates for each dollar spent on its working resources. Genuine Parts price decrease over the last few months may raise some interest from investors. The Stock closed today at a share price of 95.97 on slow start in trading volume. The company management were not very successful in positioning the corporation resources to exploit market volatility in December. However, diversifying your holdings with Genuine Parts or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.11. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Genuine Parts is selling for under 95.97. That is 4.19 percent down. Started trading at 95.97. Genuine Parts Average Assets is increasing over the last 8 years. The current value of Genuine Parts Average Assets is 12,181,294,488. Moreover, Genuine Parts Net Income Per Employee is somewhat stable at the moment. To summarize, I belive Genuine Parts is currently overvalued. It Moves indifferently to market moves and projects low probability of distress in the next two years. Our primary buy vs. sell advice on the company is Hold.
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