Genuine Parts
distributes automotive replacement parts, industrial replacement parts,
business products and electrical and electronic components in North
America . The company has
grown profits and dividends at a 6% annual rate over the last 10 years, earning
a 15%+ return on equity. While the company
is sensitive to economic conditions, it has demonstrated the ability to grow at
an above average thru an economic cycle and should continue to do so a result
of:
(1) product line
expansion,
(2) penetration
of new markets,
(3) aggressive
cost cutting,
(4) acquisitions,
(5) stock
buybacks.
Negatives:
(1) consumer
uncertainty dampens demand,
(2) GPC lack pricing power in current environment,
(3) highly
competitive industry.
Genuine Parts is
rated A+ by Value Line, has 12% debt to equity ratio and its stock yields 2.6%.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2004
Ind Ave 1.8 8* 25 NA
Debt/ EPS Down Net Value Line
Equity ROE Since 2004 Margin Rating
*over 50% of the companies in GPC industry do not pay a dividend
Chart
Note:
GPC stock made great progress off its March 2009 low, quickly surpassing the
downtrend off its September 2007 high (straight red line) and the November 2008
trading high (green line). Long term,
the stock is in an uptrend (blue lines).
Intermediate term, it is in a trading range (purple lines). The wiggly red line is the 200 day moving
average. The Dividend Growth and High
Yield Portfolios own a 90% position in GPC.
The upper boundary of its Buy Value Range is $57; the lower boundary of
its Sell Half Range is $98.
10/14
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