GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPI - US3989051095 - Common Stock
401.04 USD
-1.89 (-0.47%)
401.04 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to GPI. GPI was compared to 122 industry peers in the Specialty Retail industry. GPI has only an average score on both its financial health and profitability. 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.
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 better Return On Assets (3.57%) than 63.11% of its industry peers.
GPI has a Return On Equity of 12.15%. This is in the better half of the industry: GPI outperforms 68.85% of its industry peers.
GPI has a Return On Invested Capital of 8.28%. This is in the better half of the industry: GPI outperforms 69.67% 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 11.71%.
| 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 59.02% of the companies in the same industry.
GPI's Profit Margin has improved in the last couple of years.
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.
GPI's Operating Margin has improved in the last couple of years.
GPI has a Gross Margin of 16.09%. This is amonst the worse of the industry: GPI underperforms 83.61% 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
GPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GPI has less shares outstanding
GPI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GPI has a worse debt to assets ratio.
2.2 Solvency
GPI has an Altman-Z score of 3.52. This indicates that GPI is financially healthy and has little risk of bankruptcy at the moment.
GPI has a better Altman-Z score (3.52) than 82.79% of its industry peers.
GPI has a debt to FCF ratio of 10.91. This is a negative value and a sign of low solvency as GPI would need 10.91 years to pay back of all of its debts.
GPI has a Debt to FCF ratio (10.91) which is comparable to the rest of the 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 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.52 |
ROIC/WACC0.95
WACC8.71%
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 Current ratio of 1.06. This is in the lower half of the industry: GPI underperforms 68.85% 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's Quick ratio of 0.25 is on the low side compared to the rest of the industry. GPI is outperformed by 85.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.99% 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.
The Revenue has grown by 19.45% in the past year. This is quite good.
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
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.
The Revenue is expected to grow by 6.54% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 9.50 indicates a reasonable valuation of GPI.
Based on the Price/Earnings ratio, GPI is valued cheaply inside the industry as 86.07% of the companies are valued more expensively.
GPI is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.93 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.
The average S&P500 Price/Forward Earnings ratio is at 36.59. GPI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
GPI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPI is cheaper than 68.03% of the companies in the same industry.
86.89% of the companies in the same industry are more expensive than GPI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.52 | ||
| EV/EBITDA | 7.81 |
4.3 Compensation for Growth
GPI's 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)1.08
PEG (5Y)0.33
EPS Next 2Y6.97%
EPS Next 3Y7.54%
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 6.02, GPI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, GPI's dividend is way lower than the S&P500 average.
| 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
GPI pays out 6.93% of its income as dividend. This is a 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 2Y6.97%
EPS Next 3Y7.54%
401.04
-1.89 (-0.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.2%
Inst Owner Change-0.13%
Ins Owners2.1%
Ins Owner Change-1.07%
Market Cap5.07B
Revenue(TTM)22.54B
Net Income(TTM)371.10M
Analysts78.46
Price Target485.14 (20.97%)
Short Float %8.75%
Short Ratio4.67
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-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)-5.03%
PT rev (3m)-2.82%
EPS NQ rev (1m)-4.39%
EPS NQ rev (3m)-3.92%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)2.03%
Revenue NQ rev (3m)2.08%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 8.93 | ||
| P/S | 0.23 | ||
| P/FCF | 10.52 | ||
| P/OCF | 6.67 | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.81 |
EPS(TTM)42.21
EY10.53%
EPS(NY)44.93
Fwd EY11.2%
FCF(TTM)38.11
FCFY9.5%
OCF(TTM)60.11
OCFY14.99%
SpS1741.69
BVpS235.94
TBVpS-15.47
PEG (NY)1.08
PEG (5Y)0.33
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 | 3.52 |
F-Score6
WACC8.71%
ROIC/WACC0.95
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 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%.