$Genuine Parts (GPC.US)$In the past 5 years, in addition to ...
$Genuine Parts(GPC.US$In the past 5 years, in addition to a 5.6% decline in 2020, revenue increased for 4 years, with an average growth rate of 6.3% and an increase of 17.1% in 2022. The remaining 3 years of growth were 10.1%, with an average 5-year growth rate of 10.1%, and an increase of 38.8% in 2022. Net profit shrank 23.4% in 2019 due to restructuring and merger expenses, and lost 29 million dollars in 2020. The 5-year average growth rate was 14% and increased in 2022 31.6%
When it comes to restructuring, mergers and acquisitions, and asset depreciation, what needs to be prevented is a habitual practice. Looking back over ten years, the previous problem was not discovered. It is estimated to be a one-time event. Even so, when calculating the price-earnings ratio, the recent average net profit should be used to obtain a safer valuation.
Currently, the price-earnings ratio is 18.8, and the price-earnings ratio has dropped slightly to 18.3. If you calculate the 5-year average net profit of 700 million yuan, the price-earnings ratio is 31. In addition, the automobile sector is a highly cyclical sector, and the current valuation is unattractive.
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