GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - NYSE:GPI - US3989051095 - Common Stock
391.97 USD
+0.18 (+0.05%)
391.97 USD
0 (0%)
Overall GPI gets a fundamental rating of 5 out of 10. We evaluated GPI against 122 industry peers in the Specialty Retail industry. GPI has a medium profitability rating, but doesn't score so well on its financial health evaluation. GPI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year GPI was profitable.
GPI had a positive operating cash flow in the past year.
GPI had positive earnings in each of the past 5 years.
Each year in the past 5 years GPI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.57%, GPI is doing good in the industry, outperforming 63.11% of the companies in the same industry.
The Return On Equity of GPI (12.15%) is better than 68.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.28%, GPI is in the better half of the industry, outperforming 69.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GPI is in line with the industry average of 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.15% | ||
| ROIC | 8.28% |
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
The Profit Margin of GPI (1.65%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GPI has grown nicely.
With a decent Operating Margin value of 4.38%, GPI is doing good in the industry, outperforming 63.11% of the companies in the same industry.
In the last couple of years the Operating Margin of GPI has grown nicely.
GPI has a Gross Margin of 16.09%. This is amonst the worse of the industry: GPI underperforms 84.43% of its industry peers.
GPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 1.65% | ||
| GM | 16.09% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GPI is still creating some value.
GPI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GPI has less shares outstanding
The debt/assets ratio for GPI is higher compared to a year ago.
2.2 Solvency
GPI has an Altman-Z score of 3.51. 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 3.51, GPI is in the better half of the industry, outperforming 77.87% of the companies in the same industry.
The Debt to FCF ratio of GPI is 10.91, which is on the high side as it means it would take GPI, 10.91 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.91, GPI is in line with its industry, outperforming 54.10% of the companies in the same industry.
A Debt/Equity ratio of 1.69 is on the high side and indicates that GPI has dependencies on debt financing.
GPI's Debt to Equity ratio of 1.69 is on the low side compared to the rest of the industry. GPI is outperformed by 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.51 |
ROIC/WACC0.97
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.06 indicates that GPI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.06, GPI is not doing good in the industry: 71.31% of the companies in the same industry are doing better.
A Quick Ratio of 0.25 indicates that GPI may have some problems paying its short term obligations.
GPI's Quick ratio of 0.25 is on the low side compared to the rest of the industry. GPI is outperformed by 86.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
GPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.99%, which is quite good.
Measured over the past years, GPI shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.17% on average per year.
Looking at the last year, GPI shows a quite strong growth in Revenue. The Revenue has grown by 19.45% in the last year.
GPI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.60% yearly.
EPS 1Y (TTM)8.99%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%5.56%
Revenue 1Y (TTM)19.45%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%10.75%
3.2 Future
The Earnings Per Share is expected to grow by 9.25% on average over the next years. This is quite good.
Based on estimates for the next years, GPI will show a small growth in Revenue. The Revenue will grow by 6.54% on average per year.
EPS Next Y8.78%
EPS Next 2Y6.97%
EPS Next 3Y7.54%
EPS Next 5Y9.25%
Revenue Next Year15.28%
Revenue Next 2Y9.44%
Revenue Next 3Y7.27%
Revenue Next 5Y6.54%
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
With a Price/Earnings ratio of 9.29, the valuation of GPI can be described as very reasonable.
GPI's Price/Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 86.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of GPI to the average of the S&P500 Index (25.91), we can say GPI is valued rather cheaply.
The Price/Forward Earnings ratio is 8.72, which indicates a very decent valuation of GPI.
GPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 88.52% of the companies in the same industry.
GPI is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.29 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
GPI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPI is cheaper than 66.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 86.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.29 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
The 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)1.06
PEG (5Y)0.32
EPS Next 2Y6.97%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, GPI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.62, GPI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
On average, the dividend of GPI grows each year by 11.18%, which is quite nice.
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)11.18%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
GPI pays out 6.93% of its income as dividend. This is a sustainable payout ratio.
GPI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP6.93%
EPS Next 2Y6.97%
EPS Next 3Y7.54%
391.97
+0.18 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.2%
Inst Owner Change1.64%
Ins Owners2.1%
Ins Owner Change-1.02%
Market Cap5.07B
Revenue(TTM)22.54B
Net Income(TTM)371.10M
Analysts78.46
Price Target502.71 (28.25%)
Short Float %8.9%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend1.87
Dividend Growth(5Y)11.18%
DP6.93%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.96%
Min EPS beat(2)-3.54%
Max EPS beat(2)7.46%
EPS beat(4)3
Avg EPS beat(4)4.25%
Min EPS beat(4)-3.54%
Max EPS beat(4)9.53%
EPS beat(8)5
Avg EPS beat(8)1.34%
EPS beat(12)9
Avg EPS beat(12)2.65%
EPS beat(16)13
Avg EPS beat(16)4.09%
Revenue beat(2)2
Avg Revenue beat(2)0.81%
Min Revenue beat(2)0.43%
Max Revenue beat(2)1.18%
Revenue beat(4)4
Avg Revenue beat(4)1.66%
Min Revenue beat(4)0.41%
Max Revenue beat(4)4.62%
Revenue beat(8)7
Avg Revenue beat(8)1.11%
Revenue beat(12)11
Avg Revenue beat(12)2.03%
Revenue beat(16)14
Avg Revenue beat(16)1.36%
PT rev (1m)-1.59%
PT rev (3m)1.44%
EPS NQ rev (1m)-6.42%
EPS NQ rev (3m)-3.49%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)3.66%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.29 | ||
| Fwd PE | 8.72 | ||
| P/S | 0.23 | ||
| P/FCF | 10.29 | ||
| P/OCF | 6.52 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.68 |
EPS(TTM)42.21
EY10.77%
EPS(NY)44.93
Fwd EY11.46%
FCF(TTM)38.11
FCFY9.72%
OCF(TTM)60.11
OCFY15.33%
SpS1741.69
BVpS235.94
TBVpS-15.47
PEG (NY)1.06
PEG (5Y)0.32
Graham Number473.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.15% | ||
| ROCE | 13.98% | ||
| ROIC | 8.28% | ||
| ROICexc | 8.31% | ||
| ROICexgc | 13.07% | ||
| OM | 4.38% | ||
| PM (TTM) | 1.65% | ||
| GM | 16.09% | ||
| FCFM | 2.19% |
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%
ROICexgc growth 3Y-15.98%
ROICexgc 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 Turnover2.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Debt/EBITDA | 4.67 | ||
| Cap/Depr | 235.1% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 3.71 | ||
| Cash Conversion | 70.24% | ||
| Profit Quality | 132.88% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 3.51 |
F-Score6
WACC8.57%
ROIC/WACC0.97
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)8.99%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%5.56%
EPS Next Y8.78%
EPS Next 2Y6.97%
EPS Next 3Y7.54%
EPS Next 5Y9.25%
Revenue 1Y (TTM)19.45%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%10.75%
Revenue Next Year15.28%
Revenue Next 2Y9.44%
Revenue Next 3Y7.27%
Revenue Next 5Y6.54%
EBIT growth 1Y9.96%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year17.6%
EBIT Next 3Y8.17%
EBIT Next 5Y7.48%
FCF growth 1Y100.94%
FCF growth 3Y-32.63%
FCF growth 5Y13.77%
OCF growth 1Y74.79%
OCF growth 3Y-22.5%
OCF growth 5Y9.6%
GROUP 1 AUTOMOTIVE INC / GPI FAQ
Can you provide the ChartMill fundamental rating for GROUP 1 AUTOMOTIVE INC?
ChartMill assigns a fundamental rating of 5 / 10 to GPI.
What is the valuation status for GPI stock?
ChartMill assigns a valuation rating of 8 / 10 to GROUP 1 AUTOMOTIVE INC (GPI). This can be considered as Undervalued.
What is the profitability of GPI stock?
GROUP 1 AUTOMOTIVE INC (GPI) has a profitability rating of 6 / 10.
How financially healthy is GROUP 1 AUTOMOTIVE INC?
The financial health rating of GROUP 1 AUTOMOTIVE INC (GPI) is 3 / 10.
Is the dividend of GROUP 1 AUTOMOTIVE INC sustainable?
The dividend rating of GROUP 1 AUTOMOTIVE INC (GPI) is 5 / 10 and the dividend payout ratio is 6.93%.