I invite you to read my Genuine Parts Company – A Slightly Overvalued Dividend King article at Dividend of Stocks.
Genuine Parts Company (GPC) is a distributor of automotive replacement parts and industrial parts and materials operates in the United States, Canada, France, the United Kingdom, Germany, Poland, the Netherlands, Belgium, Australia, New Zealand, Mexico, Indonesia, and Singapore.
The company has successfully shed itself of its underperforming Business Products Group and can now focus on its faster-growing and higher-margin automotive and industrial businesses.
Disregarding a company’s valuation and overpaying to acquire shares is a recipe for poor investment returns. In my opinion, we are currently witnessing market conditions in which the share price of many companies has become somewhat detached from the underlying fundamentals and growth prospects.
Based on management's FY2021 guidance, my analysis suggests Genuine Parts Company is a slightly overvalued Dividend King. I would like the company's share price to decline to the low $90s before I consider adding to my position.
I wish you much success on your journey to financial freedom.
Thanks for reading!
Note: Please send any feedback, corrections, or questions to [email protected].
Disclaimer: I do not know your individual circumstances and am not providing individualized advice or recommendations. You should not make any investment decision without conducting your own research and due diligence.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with the company mentioned in this article.
Disclosure: I and long Genuine Parts Company in the FFJ Portfolio.
