GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
NYSE:GPI - New York Stock Exchange, Inc. - US3989051095 - Common Stock
Overall GPI gets a fundamental rating of 5 out of 10. We evaluated GPI against 119 industry peers in the Specialty Retail industry. While GPI has a great profitability rating, there are quite some concerns on its financial health. GPI has a correct valuation and a medium growth rate.
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.
GPI had positive earnings in each of the past 5 years.
GPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GPI has a Return On Assets of 5.02%. This is in the better half of the industry: GPI outperforms 67.24% of its industry peers.
GPI's Return On Equity of 16.83% is fine compared to the rest of the industry. GPI outperforms 75.86% of its industry peers.
The Return On Invested Capital of GPI (7.78%) is better than 66.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GPI is in line with the industry average of 12.38%.
The 3 year average ROIC (12.99%) for GPI is well above the current ROIC(7.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | 16.83% | ||
| ROIC | 7.78% |
ROA(3y)9.23%
ROA(5y)7.23%
ROE(3y)27.94%
ROE(5y)23.25%
ROIC(3y)12.99%
ROIC(5y)10.82%
1.3 Margins
With a decent Profit Margin value of 2.65%, GPI is doing good in the industry, outperforming 63.79% of the companies in the same industry.
GPI's Profit Margin has improved in the last couple of years.
GPI has a Operating Margin of 4.69%. This is in the better half of the industry: GPI outperforms 62.93% of its industry peers.
GPI's Operating Margin has improved in the last couple of years.
GPI has a Gross Margin of 16.39%. This is amonst the worse of the industry: GPI underperforms 86.21% of its industry peers.
GPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.69% | ||
| PM (TTM) | 2.65% | ||
| GM | 16.39% |
OM growth 3Y3.83%
OM growth 5Y10.64%
PM growth 3Y8.03%
PM growth 5Y20.17%
GM growth 3Y1.09%
GM growth 5Y2.59%
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.
The number of shares outstanding for GPI has been reduced compared to 1 year ago.
GPI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GPI is higher compared to a year ago.
2.2 Solvency
GPI has an Altman-Z score of 3.26. This indicates that GPI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.26, GPI is in the better half of the industry, outperforming 71.55% of the companies in the same industry.
A Debt/Equity ratio of 1.67 is on the high side and indicates that GPI has dependencies on debt financing.
GPI's Debt to Equity ratio of 1.67 is on the low side compared to the rest of the industry. GPI is outperformed by 68.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.26 |
ROIC/WACC0.83
WACC9.32%
2.3 Liquidity
GPI has a Current Ratio of 1.00. This is a normal value and indicates that GPI is financially healthy and should not expect problems in meeting its short term obligations.
GPI's Current ratio of 1.00 is on the low side compared to the rest of the industry. GPI is outperformed by 76.72% of its industry peers.
A Quick Ratio of 0.24 indicates that GPI may have some problems paying its short term obligations.
With a Quick ratio value of 0.24, GPI is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
GPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.05%.
Measured over the past years, GPI shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.71% on average per year.
The Revenue has grown by 8.05% in the past year. This is quite good.
The Revenue has been growing by 9.03% on average over the past years. This is quite good.
EPS 1Y (TTM)-15.05%
EPS 3Y34.79%
EPS 5Y37.71%
EPS Q2Q%-17.98%
Revenue 1Y (TTM)8.05%
Revenue growth 3Y19.02%
Revenue growth 5Y9.03%
Sales Q2Q%10.97%
3.2 Future
GPI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.72% yearly.
GPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.51% yearly.
EPS Next Y-11.95%
EPS Next 2Y-3.75%
EPS Next 3Y0.13%
EPS Next 5Y2.72%
Revenue Next Year10.06%
Revenue Next 2Y10.88%
Revenue Next 3Y8.62%
Revenue Next 5Y6.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.56, which indicates a very decent valuation of GPI.
Based on the Price/Earnings ratio, GPI is valued cheaply inside the industry as 85.34% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GPI to the average of the S&P500 Index (28.29), we can say GPI is valued rather cheaply.
The Price/Forward Earnings ratio is 10.92, which indicates a very decent valuation of GPI.
Based on the Price/Forward Earnings ratio, GPI is valued cheaper than 81.03% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GPI to the average of the S&P500 Index (24.44), we can say GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
67.24% of the companies in the same industry are more expensive than GPI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
GPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-3.75%
EPS Next 3Y0.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, GPI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.27, GPI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
The dividend of GPI is nicely growing with an annual growth rate of 11.05%!
GPI has paid a dividend for at least 10 years, which is a reliable track record.
GPI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.05%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
5.03% 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.
DP5.03%
EPS Next 2Y-3.75%
EPS Next 3Y0.13%
GROUP 1 AUTOMOTIVE INC
NYSE:GPI (1/21/2025, 5:24:36 PM)
After market: 447.61 0 (0%)447.61
-0.05 (-0.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.75%
Inst Owner Change-1.27%
Ins Owners2.23%
Ins Owner Change-1.93%
Market Cap5.96B
Analysts83.08
Price Target467.16 (4.37%)
Short Float %12.84%
Short Ratio12.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend1.8
Dividend Growth(5Y)11.05%
DP5.03%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.49%
Min EPS beat(2)-0.7%
Max EPS beat(2)3.68%
EPS beat(4)2
Avg EPS beat(4)-1.57%
Min EPS beat(4)-9.89%
Max EPS beat(4)3.68%
EPS beat(8)6
Avg EPS beat(8)1.86%
EPS beat(12)10
Avg EPS beat(12)4.04%
EPS beat(16)13
Avg EPS beat(16)6.51%
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)2.02%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)2.02%
Revenue beat(8)7
Avg Revenue beat(8)2.22%
Revenue beat(12)10
Avg Revenue beat(12)1.27%
Revenue beat(16)12
Avg Revenue beat(16)1.25%
PT rev (1m)1.33%
PT rev (3m)17.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.92 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | 34.76 | ||
| P/B | 2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.89 |
EPS(TTM)38.73
EY8.65%
EPS(NY)40.98
Fwd EY9.15%
FCF(TTM)-2.18
FCFYN/A
OCF(TTM)12.88
OCFY2.88%
SpS1416.54
BVpS223.44
TBVpS-2.24
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | 16.83% | ||
| ROCE | 13.92% | ||
| ROIC | 7.78% | ||
| ROICexc | 7.83% | ||
| ROICexgc | 12.07% | ||
| OM | 4.69% | ||
| PM (TTM) | 2.65% | ||
| GM | 16.39% | ||
| FCFM | N/A |
ROA(3y)9.23%
ROA(5y)7.23%
ROE(3y)27.94%
ROE(5y)23.25%
ROIC(3y)12.99%
ROIC(5y)10.82%
ROICexc(3y)13.07%
ROICexc(5y)10.91%
ROICexgc(3y)20.49%
ROICexgc(5y)16.54%
ROCE(3y)21.16%
ROCE(5y)18.36%
ROICexcg growth 3Y8.6%
ROICexcg growth 5Y11.54%
ROICexc growth 3Y5.68%
ROICexc growth 5Y9.72%
OM growth 3Y3.83%
OM growth 5Y10.64%
PM growth 3Y8.03%
PM growth 5Y20.17%
GM growth 3Y1.09%
GM growth 5Y2.59%
F-Score4
Asset Turnover1.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 191.05% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 4.33 | ||
| Cash Conversion | 17.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 3.26 |
F-Score4
WACC9.32%
ROIC/WACC0.83
Cap/Depr(3y)185.89%
Cap/Depr(5y)192.34%
Cap/Sales(3y)1.02%
Cap/Sales(5y)1.13%
Profit Quality(3y)89.59%
Profit Quality(5y)125.95%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.05%
EPS 3Y34.79%
EPS 5Y37.71%
EPS Q2Q%-17.98%
EPS Next Y-11.95%
EPS Next 2Y-3.75%
EPS Next 3Y0.13%
EPS Next 5Y2.72%
Revenue 1Y (TTM)8.05%
Revenue growth 3Y19.02%
Revenue growth 5Y9.03%
Sales Q2Q%10.97%
Revenue Next Year10.06%
Revenue Next 2Y10.88%
Revenue Next 3Y8.62%
Revenue Next 5Y6.51%
EBIT growth 1Y-12.14%
EBIT growth 3Y23.58%
EBIT growth 5Y20.63%
EBIT Next Year-0.06%
EBIT Next 3Y3.06%
EBIT Next 5Y3.9%
FCF growth 1Y-105.52%
FCF growth 3Y-81.02%
FCF growth 5Y-48.22%
OCF growth 1Y-74.61%
OCF growth 3Y-38.19%
OCF growth 5Y-6.77%