2024-01-23 10:08:47 ET
Summary
- The stock has lost 25% from its recent peak.
- The management team is too focused on external acquisitions rather than improving existing business.
- The company is losing market share to its competitors and has a bad balance sheet.
- Dividend payment commitment and constantly increased lead me to assign a "hold" rating for the corporation.
After my first article , I continue my studies about dividend companies. As I was navigating the internet, I came across a particular business working in an intriguing sector: Genuine Parts Company (GPC), a company distributing automotive replacement parts and industrial components. Over the last five years, it was not able to compound its business and the management team mainly focused on acquisitions. The commitment to dividend payment, mixed with some uncertainties, led me to assign a "hold" rating for this corporation....
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Genuine Parts Company: Commitment To Dividends Increase Leads Me To A 'Hold' Rating