GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - NYSE:GPI - US3989051095 - Common Stock
430.51 USD
-4.59 (-1.05%)
430.51 USD
0 (0%)
Overall GPI gets a fundamental rating of 5 out of 10. We evaluated GPI against 120 industry peers in the Specialty Retail industry. While GPI is still in line with the averages on profitability rating, there are concerns on its financial health. GPI is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
GPI had positive earnings in the past year.
In the past year GPI had a positive cash flow from operations.
In the past 5 years GPI has always been profitable.
In the past 5 years GPI always reported a positive cash flow from operatings.
1.2 Ratios
GPI's Return On Assets of 4.63% is fine compared to the rest of the industry. GPI outperforms 65.83% of its industry peers.
GPI has a better Return On Equity (15.09%) than 74.17% of its industry peers.
With a decent Return On Invested Capital value of 8.43%, GPI is doing good in the industry, outperforming 70.83% of the companies in the same industry.
GPI had an Average Return On Invested Capital over the past 3 years of 11.08%. This is in line with the industry average of 12.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 15.09% | ||
| ROIC | 8.43% |
ROA(3y)7.79%
ROA(5y)7.62%
ROE(3y)23.65%
ROE(5y)23.85%
ROIC(3y)11.08%
ROIC(5y)11.18%
1.3 Margins
GPI has a Profit Margin (2.15%) which is comparable to the rest of the industry.
GPI's Profit Margin has improved in the last couple of years.
The Operating Margin of GPI (4.53%) is better than 64.17% of its industry peers.
In the last couple of years the Operating Margin of GPI has grown nicely.
With a Gross Margin value of 16.20%, GPI is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
GPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.53% | ||
| PM (TTM) | 2.15% | ||
| GM | 16.2% |
OM growth 3Y-11.42%
OM growth 5Y7.66%
PM growth 3Y-14.84%
PM growth 5Y11.89%
GM growth 3Y-3.52%
GM growth 5Y1.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GPI is creating some value.
Compared to 1 year ago, GPI has less shares outstanding
Compared to 5 years ago, GPI has less shares outstanding
Compared to 1 year ago, GPI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.56 indicates that GPI is not in any danger for bankruptcy at the moment.
The Altman-Z score of GPI (3.56) is better than 79.17% of its industry peers.
GPI has a debt to FCF ratio of 8.59. This is a slightly negative value and a sign of low solvency as GPI would need 8.59 years to pay back of all of its debts.
GPI has a Debt to FCF ratio (8.59) which is in line with its industry peers.
A Debt/Equity ratio of 1.59 is on the high side and indicates that GPI has dependencies on debt financing.
GPI's Debt to Equity ratio of 1.59 is on the low side compared to the rest of the industry. GPI is outperformed by 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 3.56 |
ROIC/WACC0.96
WACC8.81%
2.3 Liquidity
A Current Ratio of 1.05 indicates that GPI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.05, GPI is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
GPI has a Quick Ratio of 1.05. This is a bad value and indicates that GPI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.24, GPI is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.86% over the past year.
GPI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.17% yearly.
GPI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.75%.
Measured over the past years, GPI shows a quite strong growth in Revenue. The Revenue has been growing by 10.60% on average per year.
EPS 1Y (TTM)1.86%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%17.55%
Revenue 1Y (TTM)19.75%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%21.44%
3.2 Future
GPI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.11% yearly.
GPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.26% yearly.
EPS Next Y9.67%
EPS Next 2Y7.67%
EPS Next 3Y7.03%
EPS Next 5Y9.11%
Revenue Next Year14.77%
Revenue Next 2Y9.14%
Revenue Next 3Y7.29%
Revenue Next 5Y6.26%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GPI is valuated reasonably with a Price/Earnings ratio of 10.33.
Based on the Price/Earnings ratio, GPI is valued cheaper than 85.83% of the companies in the same industry.
When comparing the Price/Earnings ratio of GPI to the average of the S&P500 Index (27.29), we can say GPI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.46, the valuation of GPI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 86.67% of the companies listed in the same industry.
GPI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 9.46 |
4.2 Price Multiples
GPI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPI is cheaper than 68.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GPI is valued cheaply inside the industry as 89.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.27 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
GPI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GPI may justify a higher PE ratio.
PEG (NY)1.07
PEG (5Y)0.35
EPS Next 2Y7.67%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
GPI has a yearly dividend return of 0.47%, which is pretty low.
GPI's Dividend Yield is a higher than the industry average which is at 5.63.
Compared to an average S&P500 Dividend Yield of 2.38, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
On average, the dividend of GPI grows each year by 11.18%, which is quite nice.
GPI has been paying a dividend for at least 10 years, so it has a reliable track record.
GPI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.18%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
5.41% of the earnings are spent on dividend by GPI. This is a low number and sustainable payout ratio.
The dividend of GPI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP5.41%
EPS Next 2Y7.67%
EPS Next 3Y7.03%
430.51
-4.59 (-1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.2%
Inst Owner Change-0.36%
Ins Owners2.1%
Ins Owner Change-1.28%
Market Cap5.57B
Analysts78.46
Price Target510.85 (18.66%)
Short Float %7.82%
Short Ratio5.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend1.87
Dividend Growth(5Y)11.18%
DP5.41%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.51%
Min EPS beat(2)3.57%
Max EPS beat(2)7.46%
EPS beat(4)3
Avg EPS beat(4)4.96%
Min EPS beat(4)-0.7%
Max EPS beat(4)9.53%
EPS beat(8)6
Avg EPS beat(8)2.29%
EPS beat(12)10
Avg EPS beat(12)3.38%
EPS beat(16)14
Avg EPS beat(16)4.61%
Revenue beat(2)2
Avg Revenue beat(2)0.42%
Min Revenue beat(2)0.41%
Max Revenue beat(2)0.43%
Revenue beat(4)4
Avg Revenue beat(4)1.87%
Min Revenue beat(4)0.41%
Max Revenue beat(4)4.62%
Revenue beat(8)7
Avg Revenue beat(8)1.39%
Revenue beat(12)11
Avg Revenue beat(12)2.14%
Revenue beat(16)13
Avg Revenue beat(16)1.22%
PT rev (1m)2.33%
PT rev (3m)4.46%
EPS NQ rev (1m)-0.91%
EPS NQ rev (3m)4.25%
EPS NY rev (1m)1.07%
EPS NY rev (3m)4.51%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 9.46 | ||
| P/S | 0.25 | ||
| P/FCF | 9.27 | ||
| P/OCF | 6.43 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.84 |
EPS(TTM)41.66
EY9.68%
EPS(NY)45.53
Fwd EY10.58%
FCF(TTM)46.43
FCFY10.78%
OCF(TTM)66.99
OCFY15.56%
SpS1698.32
BVpS242.35
TBVpS-11.48
PEG (NY)1.07
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 15.09% | ||
| ROCE | 14.31% | ||
| ROIC | 8.43% | ||
| ROICexc | 8.48% | ||
| ROICexgc | 13.48% | ||
| OM | 4.53% | ||
| PM (TTM) | 2.15% | ||
| GM | 16.2% | ||
| FCFM | 2.73% |
ROA(3y)7.79%
ROA(5y)7.62%
ROE(3y)23.65%
ROE(5y)23.85%
ROIC(3y)11.08%
ROIC(5y)11.18%
ROICexc(3y)11.16%
ROICexc(5y)11.27%
ROICexgc(3y)17.41%
ROICexgc(5y)17.34%
ROCE(3y)18.83%
ROCE(5y)18.78%
ROICexcg growth 3Y-15.98%
ROICexcg growth 5Y9.26%
ROICexc growth 3Y-15.53%
ROICexc growth 5Y6.34%
OM growth 3Y-11.42%
OM growth 5Y7.66%
PM growth 3Y-14.84%
PM growth 5Y11.89%
GM growth 3Y-3.52%
GM growth 5Y1.52%
F-Score6
Asset Turnover2.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 8.59 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 223.43% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 77.84% | ||
| Profit Quality | 126.97% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 3.56 |
F-Score6
WACC8.81%
ROIC/WACC0.96
Cap/Depr(3y)197.46%
Cap/Depr(5y)182.1%
Cap/Sales(3y)1.08%
Cap/Sales(5y)1.05%
Profit Quality(3y)43.25%
Profit Quality(5y)118.63%
High Growth Momentum
Growth
EPS 1Y (TTM)1.86%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%17.55%
EPS Next Y9.67%
EPS Next 2Y7.67%
EPS Next 3Y7.03%
EPS Next 5Y9.11%
Revenue 1Y (TTM)19.75%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%21.44%
Revenue Next Year14.77%
Revenue Next 2Y9.14%
Revenue Next 3Y7.29%
Revenue Next 5Y6.26%
EBIT growth 1Y9.03%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year17.6%
EBIT Next 3Y8.17%
EBIT Next 5Y7.17%
FCF growth 1Y110.51%
FCF growth 3Y-32.63%
FCF growth 5Y13.77%
OCF growth 1Y86.59%
OCF growth 3Y-22.5%
OCF growth 5Y9.6%