NYSE:GPC
$41.42
(3/18 4:01PM)
+0.4%
| Open | $41.38 |
Mkt Cap | $6.5 Billion |
| High | $41.64 |
52Wk High | $42.20 |
| Low | $41.09 |
52Wk Low | $29.18 |
| Volume | 552,270 |
Avg Vol 10D | 559,900 |
Ockham's Rating/Recommendation Summary
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GPC Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at GPC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.87x and 0.66x respectively.
Utilizing this range we can see that GPC’s current Price to Sales per share ratio of 0.64x is significantly below its average levels historically. In fact, with a current price of $40.76, GPC is a full 17% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for GPC.
GPC Cash Earnings
Looking at GPC specifically in their Cash Earnings capabilities, Ockham views GPC as below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for GPC to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 16.59 and a 12.52 low over the same period.
With a historical average Cash Earnings ratio of 14.56, the current Cash Earnings ratio of 13.19 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for GPC, but to get there one of two things must occur (or both). Either the stock price must decline further to increase the long term buying opportunity, or the management at GPC needs to earn more cash. If either, or both, of these occur, then we could see a significant gap emerge between what investors were willing to pay for in the past, and where GPC is trading currently (latest close price of $40.76).
GPC Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for GPC, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. GPC’s estimated annual dividend is $1.64 resulting in a current dividend yield of 4.02%. The highest dividend yield from GPC over recent history was 6.40% while the lowest dividend yield was 2.65%. GPC is not making us feel all that confident when their current dividend yield is below the historical median by 11.16%.
Genuine Parts Company (GPC) Discussed on CNBC's Closing Bell
Genuine Parts Company is in the news. Find out how this impacts GPC trading on Ockham Research.
Be doing well because people love these stocks and you know, they're paying up for them. That's one of the big questions. So we've got mattel, harley, winnebago is out there. The russell 2000 up over 100%. And GENUINE PARTS, which is an auto parts company. >> drill down into the consumer discretionary sector and we'll be watching all this week. Now to the nasdaq marketsite. Melissa lee with more on what's coming up on "fast money." >> yes, it was a low volume day, but we've got a big show ahead that you won't want to miss because we're going to get you set up for all the big earnings. We've got a top-ranked intel analyst, also top-ranked financial service analyst and we've got the most bullish analyst on the street on her price target raise of google we've also got the manpower ceo on the future of the jobs market and which sectors are hiring. All that and much more top of the hour on "fast." >> sounds great, melissa. So the weather may be getting hollywood is doing sizzling sales at the box office, though, and that's not the only positive sign coming from the entertainment industry. We'll have the details when we you're watching cbs, we arenbc, we are first in business worldwide.
“… . >> drill down into the consumer discretionary sector and we'll be watching all this week. Now to the nasdaq marketsite. Melissa lee with more on what's coming up on "fast money." >> yes, it was a low volume day, but we've got a big show ahead that you won't want to miss because we're going to get you set up for all the big earnings. We've got a top-ranked intel analyst, also top-ranked financial service analyst and we've got the most bullish analyst on the street on her price target raise of google we've also got the manpower ceo on the future of the jobs market and which sectors are hiring. All that and much more top of the hour on "fast." >> sounds great, melissa. So the weather may be getting hollywood is doing sizzling sales at the box office, though, and that's not the only positive sign coming from the entertainment industry. We'll have the details when we you're watching cbs, we arenbc, we are first in business worldwide. …”
Genuine Parts Company (GPC) Discussed on CNBC's Squawk On The Street
Genuine Parts Company is in the news. Find out how this impacts GPC trading on Ockham Research.
Look at biogin, trades on up year observer year for 2009 by 11%. Get the stock down 40% in the that's a great buy. Look at GENUINE PARTS. Another company a lot of people are using more parts for their cars, buying new cars. Gosh, this company, their is 12, 9.9 times cash flow.
“… , 9.9 times cash flow. …”
Genuine Parts Company (GPC) Discussed on CNBC's Closing Bell
Genuine Parts Company is in the news. Find out how this impacts GPC trading on Ockham Research.
Motorcycle maker, polari. Their first quarter results topped estimates and they're also seeing signs of life. They said we like what we've seen in the first 15 days of in terms of traffic. GENUINE PARTS first quarter results also beating gross margins up slightly to 30%. Auto industrial parts maker expects the economic slowdown to
“… slightly to 30%. Auto industrial parts maker expects the economic slowdown to …”
Genuine Parts Company (GPC) Discussed on CNBC's Squawk On The Street
Genuine Parts Company is in the news. Find out how this impacts GPC trading on Ockham Research.
Where we're going to be heading. Let me make a note here on dell. Shares are down 1%. They expect first quarter gpc expected. The price target is up on
“… Where we're going to be heading. Let me make a note here on dell. Shares are down 1%. They expect first quarter gpc expected. The price target is up on …”
Genuine Parts Company (GPC) Discussed on CNBC's Closing Bell
Genuine Parts Company is in the news. Find out how this impacts GPC trading on Ockham Research.
Afford to raise the dividend, whether it's growing this year or not? And there are those kind of companies out there. Mccormick is a defensive name I like that has good dividend growth behind it. GENUINE PARTS, a little bit more in star an excellent ute wilt a 5% yield. And I think that's really the you can get 4%, 5%, 6% yields that are still growing in this environment, that's a really attractive total return story.
“… ilt a 5% yield. And I think that's really the you can get 4%, 5%, 6% yields that are still growing in this environment, that's a really attractive total return story. …”
Genuine Parts Company (GPC) Discussed on CNBC's Closing Bell
Genuine Parts Company is in the news. Find out how this impacts GPC trading on Ockham Research.
Reporting a 97% drop with the charge and they came in ahead of expectations and the stock is good for 27%. GENUINE PARTS cutting '08 well below expectations. Blaming the tough economy for a dig drop in demand for products. Railroad equipment maker forecasting earnings below
“… ting earnings below …”