GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPI - US3989051095 - Common Stock
397.43 USD
-0.87 (-0.22%)
397.43 USD
0 (0%)
GPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. There are concerns on the financial health of GPI while its profitability can be described as average. GPI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year GPI was profitable.
- GPI had a positive operating cash flow in the past year.
- In the past 5 years GPI has always been profitable.
- GPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 3.57%, GPI is doing good in the industry, outperforming 61.48% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.15%, GPI is in the better half of the industry, outperforming 68.03% of the companies in the same industry.
- 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 12.24%.
| 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
- GPI has a Profit Margin (1.65%) which is in line with its industry peers.
- GPI's Profit Margin has improved in the last couple of years.
- GPI has a Operating Margin of 4.38%. This is in the better half of the industry: GPI outperforms 62.30% of its industry peers.
- GPI's Operating Margin has improved in the last couple of years.
- The Gross Margin of GPI (16.09%) is worse than 82.79% of its industry peers.
- In the last couple of years the Gross Margin of GPI has grown nicely.
| 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.
- Compared to 1 year ago, GPI has less shares outstanding
- The number of shares outstanding for GPI has been reduced compared to 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 3.51. 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 79.51% 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.
- With a Debt to FCF ratio value of 10.91, GPI perfoms like the industry average, outperforming 53.28% of the companies in the same industry.
- GPI has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.69, GPI is not doing good in the industry: 67.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.51 |
ROIC/WACC0.92
WACC8.97%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that GPI should not have too much problems paying its short term obligations.
- GPI has a worse Current ratio (1.06) than 69.67% of its industry peers.
- GPI has a Quick Ratio of 1.06. This is a bad value and indicates that GPI is not financially healthy enough and could expect problems in meeting its short term obligations.
- GPI has a worse Quick ratio (0.25) than 85.25% 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.
- The Revenue has grown by 19.45% in the past year. This is quite good.
- 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)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
- GPI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.25% yearly.
- 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 Y8.23%
EPS Next 2Y6.84%
EPS Next 3Y8.02%
EPS Next 5Y9.25%
Revenue Next Year15.58%
Revenue Next 2Y9.28%
Revenue Next 3Y7.11%
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.
- 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 9.42.
- Compared to the rest of the industry, the Price/Earnings ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 89.34% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, GPI is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.87 indicates a reasonable valuation of GPI.
- GPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 89.34% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of GPI to the average of the S&P500 Index (24.12), we can say GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than 72.13% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, GPI is valued cheaply inside the industry as 86.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.18 | ||
| EV/EBITDA | 7.64 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- GPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.14
PEG (5Y)0.32
EPS Next 2Y6.84%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
- GPI has a yearly dividend return of 0.50%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.13, GPI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.50, GPI pays less dividend than the S&P500 average, which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
- The dividend of GPI is nicely growing with an annual growth rate of 11.18%!
- 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
- 6.93% 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.
DP6.93%
EPS Next 2Y6.84%
EPS Next 3Y8.02%
397.43
-0.87 (-0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-04 2026-02-04/amc
Inst Owners101.63%
Inst Owner Change0.21%
Ins Owners2.15%
Ins Owner Change-0.23%
Market Cap5.02B
Revenue(TTM)22.54B
Net Income(TTM)371.10M
Analysts76.92
Price Target476.49 (19.89%)
Short Float %8.39%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend1.87
Dividend Growth(5Y)11.18%
DP6.93%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)-1.78%
PT rev (3m)-6.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.89%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.22 | ||
| P/FCF | 10.18 | ||
| P/OCF | 6.45 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.64 |
EPS(TTM)42.21
EY10.62%
EPS(NY)44.83
Fwd EY11.28%
FCF(TTM)39.04
FCFY9.82%
OCF(TTM)61.58
OCFY15.5%
SpS1784.44
BVpS241.73
TBVpS-15.85
PEG (NY)1.14
PEG (5Y)0.32
Graham Number479.15
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
WACC8.97%
ROIC/WACC0.92
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 Y8.23%
EPS Next 2Y6.84%
EPS Next 3Y8.02%
EPS Next 5Y9.25%
Revenue 1Y (TTM)19.45%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%10.75%
Revenue Next Year15.58%
Revenue Next 2Y9.28%
Revenue Next 3Y7.11%
Revenue Next 5Y6.54%
EBIT growth 1Y9.96%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year16.7%
EBIT Next 3Y7.5%
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.
Can you provide the valuation status for GROUP 1 AUTOMOTIVE INC?
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.
What are the PE and PB ratios of GROUP 1 AUTOMOTIVE INC (GPI) stock?
The Price/Earnings (PE) ratio for GROUP 1 AUTOMOTIVE INC (GPI) is 9.42 and the Price/Book (PB) ratio is 1.64.
How sustainable is the dividend of GROUP 1 AUTOMOTIVE INC (GPI) stock?
The dividend rating of GROUP 1 AUTOMOTIVE INC (GPI) is 5 / 10 and the dividend payout ratio is 6.93%.