GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPI - US3989051095 - Common Stock
407.935 USD
+2.42 (+0.6%)
Overall GPI gets a fundamental rating of 5 out of 10. We evaluated GPI against 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of GPI get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on GPI.
1. Profitability
1.1 Basic Checks
GPI had positive earnings in the past year.
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
GPI has a Return On Assets of 3.57%. This is in the better half of the industry: GPI outperforms 62.81% of its industry peers.
GPI's Return On Equity of 12.15% is fine compared to the rest of the industry. GPI outperforms 68.59% of its industry peers.
The Return On Invested Capital of GPI (8.28%) is better than 68.59% of its industry peers.
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 12.25%.
| 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
With a Profit Margin value of 1.65%, GPI perfoms like the industry average, outperforming 58.68% of the companies in the same industry.
In the last couple of years the Profit Margin of GPI has grown nicely.
GPI has a Operating Margin of 4.38%. This is in the better half of the industry: GPI outperforms 62.81% 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 83.47% 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
GPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GPI has been reduced compared to 1 year ago.
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
An Altman-Z score of 3.52 indicates that GPI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.52, GPI belongs to the top of the industry, outperforming 81.82% 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 56.20% 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.
GPI has a Debt to Equity ratio of 1.69. This is in the lower half of the industry: GPI underperforms 66.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.52 |
ROIC/WACC0.93
WACC8.88%
2.3 Liquidity
A Current Ratio of 1.06 indicates that GPI should not have too much problems paying its short term obligations.
The Current ratio of GPI (1.06) is worse than 69.42% of its industry peers.
A Quick Ratio of 0.25 indicates that GPI may have some problems paying its short term obligations.
GPI has a Quick ratio of 0.25. This is amonst the worse of the industry: GPI underperforms 85.95% 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.
The Earnings Per Share has been growing by 29.17% on average over the past years. This is a very strong growth
Looking at the last year, GPI shows a quite strong growth in Revenue. The Revenue has grown by 19.45% in the last year.
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
Based on estimates for the next years, GPI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.25% on average per year.
GPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.54% yearly.
EPS Next Y7.99%
EPS Next 2Y6.71%
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
The Price/Earnings ratio is 9.66, which indicates a very decent valuation of GPI.
GPI's Price/Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 86.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of GPI to the average of the S&P500 Index (26.34), we can say GPI is valued rather cheaply.
A Price/Forward Earnings ratio of 9.12 indicates a reasonable valuation of GPI.
Based on the Price/Forward Earnings ratio, GPI is valued cheaper than 90.08% of the companies in the same industry.
GPI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than 70.25% 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 85.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.45 | ||
| EV/EBITDA | 7.73 |
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)1.21
PEG (5Y)0.33
EPS Next 2Y6.71%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, GPI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.67, GPI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.49, GPI pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
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 2Y6.71%
EPS Next 3Y8.02%
NYSE:GPI (12/9/2025, 3:00:11 PM)
407.935
+2.42 (+0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.44%
Inst Owner Change-0.13%
Ins Owners2.15%
Ins Owner Change-1.07%
Market Cap5.15B
Revenue(TTM)22.54B
Net Income(TTM)371.10M
Analysts78.57
Price Target485.14 (18.93%)
Short Float %9.01%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)-3.5%
PT rev (3m)-2.82%
EPS NQ rev (1m)1.63%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 9.12 | ||
| P/S | 0.23 | ||
| P/FCF | 10.45 | ||
| P/OCF | 6.62 | ||
| P/B | 1.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.73 |
EPS(TTM)42.21
EY10.35%
EPS(NY)44.71
Fwd EY10.96%
FCF(TTM)39.04
FCFY9.57%
OCF(TTM)61.58
OCFY15.1%
SpS1784.44
BVpS241.73
TBVpS-15.85
PEG (NY)1.21
PEG (5Y)0.33
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 | 3.52 |
F-Score6
WACC8.88%
ROIC/WACC0.93
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 Y7.99%
EPS Next 2Y6.71%
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.
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 4 / 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%.