GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
NYSE:GPI - New York Stock Exchange, Inc. - US3989051095 - Common Stock - Currency: USD
GPI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. While GPI is still in line with the averages on profitability rating, there are concerns on its financial health. GPI is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years GPI has been profitable.
GPI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.02%, GPI is doing good in the industry, outperforming 67.52% of the companies in the same industry.
With a decent Return On Equity value of 16.83%, GPI is doing good in the industry, outperforming 76.07% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.73%, GPI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | 16.83% | ||
| ROIC | 7.73% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GPI has a better Profit Margin (2.65%) than 64.10% of its industry peers.
In the last couple of years the Profit Margin of GPI has grown nicely.
With a decent Operating Margin value of 4.69%, GPI is doing good in the industry, outperforming 64.10% of the companies in the same industry.
In the last couple of years the Operating Margin of GPI has grown nicely.
Looking at the Gross Margin, with a value of 16.39%, GPI is doing worse than 86.32% of the companies in the same industry.
In the last couple of years the Gross Margin of GPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.69% | ||
| PM (TTM) | 2.65% | ||
| GM | 16.39% |
OM growth 3Y-11.29%
OM growth 5Y7.75%
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 below the Cost of Capital (WACC), which means it is destroying value.
GPI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.27 indicates that GPI is not in any danger for bankruptcy at the moment.
The Altman-Z score of GPI (3.27) is better than 72.65% of its industry peers.
GPI has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.67, GPI is doing worse than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.27 |
ROIC/WACC0.82
WACC9.42%
2.3 Liquidity
A Current Ratio of 1.00 indicates that GPI should not have too much problems paying 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 76.92% of its industry peers.
GPI has a Quick Ratio of 1.00. This is a bad value and indicates that GPI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.24, GPI is not doing good in the industry: 82.05% 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
The earnings per share for GPI have decreased strongly by -11.21% in the last year.
The Earnings Per Share has been growing by 29.17% on average over the past years. This is a very strong growth
GPI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.53%.
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)-11.21%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%5.68%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%23.79%
3.2 Future
Based on estimates for the next years, GPI will show a small growth in Earnings Per Share. The EPS will grow by 6.53% on average per year.
GPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.58% yearly.
EPS Next Y6.22%
EPS Next 2Y9.31%
EPS Next 3Y7.81%
EPS Next 5Y6.53%
Revenue Next Year12.66%
Revenue Next 2Y8.38%
Revenue Next 3Y7.12%
Revenue Next 5Y5.58%
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
Based on the Price/Earnings ratio of 11.49, the valuation of GPI can be described as reasonable.
Based on the Price/Earnings ratio, GPI is valued cheaper than 83.76% of the companies in the same industry.
GPI is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.82, the valuation of GPI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, GPI is valued a bit cheaper than the industry average as 76.07% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GPI to the average of the S&P500 Index (22.68), we can say GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
GPI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPI is cheaper than 64.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of GPI may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)0.39
EPS Next 2Y9.31%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
GPI has a yearly dividend return of 0.41%, which is pretty low.
Compared to an average industry Dividend Yield of 4.31, GPI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.41, GPI pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of GPI is nicely growing with an annual growth rate of 11.05%!
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)11.05%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
GPI pays out 5.03% 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.
DP5.03%
EPS Next 2Y9.31%
EPS Next 3Y7.81%
451.16
-17.26 (-3.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.44%
Inst Owner Change-2.07%
Ins Owners2.38%
Ins Owner Change2.23%
Market Cap6.01B
Analysts81.54
Price Target504.9 (11.91%)
Short Float %10.64%
Short Ratio10.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend1.8
Dividend Growth(5Y)11.05%
DP5.03%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)8.08%
PT rev (3m)14.66%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)1.8%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)1.26%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 10.82 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | 35.04 | ||
| P/B | 2.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.94 |
EPS(TTM)39.27
EY8.7%
EPS(NY)41.71
Fwd EY9.25%
FCF(TTM)-2.18
FCFYN/A
OCF(TTM)12.88
OCFY2.85%
SpS1416.54
BVpS223.44
TBVpS-2.24
PEG (NY)1.85
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | 16.83% | ||
| ROCE | 13.92% | ||
| ROIC | 7.73% | ||
| ROICexc | 7.78% | ||
| ROICexgc | 11.99% | ||
| OM | 4.69% | ||
| PM (TTM) | 2.65% | ||
| GM | 16.39% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-11.29%
OM growth 5Y7.75%
PM growth 3Y-14.84%
PM growth 5Y11.89%
GM growth 3Y-3.52%
GM growth 5Y1.52%
F-Score3
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 | 3.27 |
F-Score3
WACC9.42%
ROIC/WACC0.82
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.21%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%5.68%
EPS Next Y6.22%
EPS Next 2Y9.31%
EPS Next 3Y7.81%
EPS Next 5Y6.53%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%23.79%
Revenue Next Year12.66%
Revenue Next 2Y8.38%
Revenue Next 3Y7.12%
Revenue Next 5Y5.58%
EBIT growth 1Y-12.14%
EBIT growth 3Y1.07%
EBIT growth 5Y19.18%
EBIT Next Year16.03%
EBIT Next 3Y8.68%
EBIT Next 5Y7.29%
FCF growth 1Y-111.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-61.46%
OCF growth 3YN/A
OCF growth 5YN/A