Summary
- Genuine Parts has a fantastic track record.
- While the car industry is somewhat underrepresented in my retirement portfolio, I am looking for a good long-term fit.
- According to my three grade rating, Genuine Parts is generally worth an investment, but there is no hurry.
The car industry is somewhat underrepresented in my retirement portfolio. This applies to both manufacturers and suppliers. In particular the diesel scandal, the disruptive changes caused by the introduction of electric vehicles and the cyclical nature of such investment have so far kept me from this industry. However, if you look at the share price performance of Genuine Parts Company (GPC), the company seems to be worth to be explored in more detail.
According to my three grade rating, Genuine Parts is generally worth an investment, but there is no hurry.
The company
The Genuine Parts Company was founded in the middle of 1928 and specializes in the distribution of spare parts. The company is divided into three main business segments: Automotive, industry and business. The Automotive segment supplies spare parts for passenger cars, while the Industrial unit sells spare parts for industrial equipment. In terms of sales, the Automotive segment is by far the largest business segment. In 2018, the segment contributed 56% of total sales, while the industrial unit generated 34% of total sales.The third and smallest segment supplies office products, furniture, health products or security articles. Genuine Parts conducts its business through a number of distribution centers and a large number of smaller retail stores.
