Genuine Parts Company (NYSE:GPC)

Genuine Parts Co.Founded in 1928, Genuine Parts Company is based in Atlanta, Georgia and employs 31,700 people. It specializes in replacement parts for cars and other industrial machinery. The Automotive Parts Group (NAPA), GPC's largest division, distributes more than 380,000 products through its 64 distribution centers throughout the United States. It also consists of NAPA Canada / UAP Inc., a leading distributor of automotive parts in Canada, as well as Auto Todo, one of the largest automotive sales organizations in Mexico. They also own the Canadian heavy-duty parts distributor TW Distribution (owned by UAP), and the automotive aftermarket parts importer-distributor Altrom.

GPC also consists of the Birmingham, Alabama-based Industrial Parts Group, which operates as Motion Industries and distributes more than three million items throughout the United States and Canada. The Office Products Group distributes more than 50,000 commercial products from 45 distribution centers throughout the United States and Canada, under the SPRichards name, to thousands of dealers, including independent mass merchandisers, mail order distributors and Internet distributors. The Electrical/Electronic Materials Group, operating as EIS Inc., is one of North America's leading distributors of industrial materials and supplies.

GPC offers a current yield of 2.8%, which is still reasonable considering the current market valuation and the very strong increase in the share price since 2009. The average yield over the last few years is obviously higher, at 3.87%. The annual dividend growth is interesting, at 7.37%, but what is especially remarkable is that The company has grown its distributions for 56 consecutive years. The most recent dividend increase was on March 6th with an increase of 8,59%. Over the next five years it should increase at an average annual rate of 6,76%. The company applies a prudent dividend payment policy, since currently it only represents 48,84% of the profit.

Le secteur d'activité de Genuine Parts Co. est particulier car il est en premier lieu de nature industrielle et fortement lié à l'automobile. Cela se traduit par une volatility de 23.59%, dont nous n'avons pas forcément l'habitude parmi les payeurs de growing dividends. Mais d'un autre côté, comme il s'agit de pièces de remplacement, GPC est moins sensible aux variations conjoncturelles que subissent typiquement les constructeurs automobiles. Ceci nous donne un bêta tout à fait abordable de 0.74. Si vous avez des craintes pour votre emploi, vous repoussez l'achat de votre voiture de quelques années, et donc vous devez avoir recours à des pièces détachées. Il peut donc même y avoir un effet anti-cyclique avec ce type de société, comme on peut le constater entre 1997 et 2002, où GPC a évolué a sens inverse du marché.

Opening up to the Mexican and Canadian markets allows GPC to free itself from currency risk. Thus, the decline of the dollar tends to be beneficial for the company, which translates into a rise in the share price in CHF. The $risk of -0.30 reflects this state of affairs.

GPC et USD

GPC reçoit au final 3 étoiles, soit un bon rapport rentabilité/risque. Le rendement reste attractif malgré les cours qui s'envolent et surtout les dividendes croissants peuvent se vanter d'un sacré historique, couplé à un distribution ratio prudent. Le titre offre par ailleurs une bonne protection contre les variations du dollar. Le seul point noir véritable c'est la volatilité qui est tout de même très élevée pour un payeur de dividendes croissants. A manier donc avec beaucoup de délicatesse si on a pas l'habitude de ce genre de titres ou les nerfs peu solides...

Sources: Wikinvest, Wikipedia, Yahoo Finance, Swissquote, dividends.ch


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