GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
NYSE:GPI - New York Stock Exchange, Inc. - US3989051095 - Common Stock - Currency: USD
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. GPI has a correct valuation and a medium 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.
In the past 5 years GPI has always been profitable.
In the past 5 years GPI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GPI (4.75%) is better than 67.77% of its industry peers.
The Return On Equity of GPI (15.69%) is better than 72.73% of its industry peers.
GPI has a better Return On Invested Capital (8.42%) than 70.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GPI is in line with the industry average of 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 15.69% | ||
| ROIC | 8.42% |
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's Profit Margin of 2.24% is in line compared to the rest of the industry. GPI outperforms 59.50% of its industry peers.
In the last couple of years the Profit Margin of GPI has grown nicely.
GPI's Operating Margin of 4.55% is fine compared to the rest of the industry. GPI outperforms 65.29% of its industry peers.
GPI's Operating Margin has improved in the last couple of years.
GPI has a Gross Margin of 16.17%. This is amonst the worse of the industry: GPI underperforms 85.12% of its industry peers.
In the last couple of years the Gross Margin of GPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.55% | ||
| PM (TTM) | 2.24% | ||
| GM | 16.17% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GPI is creating some value.
GPI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GPI has less shares outstanding
GPI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.58 indicates that GPI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.58, GPI belongs to the top of the industry, outperforming 80.99% of the companies in the same industry.
The Debt to FCF ratio of GPI is 19.31, which is on the high side as it means it would take GPI, 19.31 years of fcf income to pay off all of its debts.
GPI has a Debt to FCF ratio of 19.31. This is comparable to the rest of the industry: GPI outperforms 51.24% of its industry peers.
GPI has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.61, GPI is doing worse than 65.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 19.31 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.96
WACC8.77%
2.3 Liquidity
GPI has a Current Ratio of 1.00. This is a normal value and indicates that GPI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GPI (1.00) is worse than 73.55% of its industry peers.
A Quick Ratio of 0.27 indicates that GPI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.27, GPI is doing worse than 79.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The earnings per share for GPI have decreased by -6.75% 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
The Revenue has grown by 15.13% 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)-6.75%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%7.03%
Revenue 1Y (TTM)15.13%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%23.15%
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 9.56% on average per year.
Based on estimates for the next years, GPI will show a small growth in Revenue. The Revenue will grow by 6.26% on average per year.
EPS Next Y5.39%
EPS Next 2Y6.1%
EPS Next 3Y7.23%
EPS Next 5Y9.56%
Revenue Next Year13.8%
Revenue Next 2Y8.53%
Revenue Next 3Y7.4%
Revenue Next 5Y6.26%
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
A Price/Earnings ratio of 11.95 indicates a reasonable valuation of GPI.
Based on the Price/Earnings ratio, GPI is valued cheaper than 83.47% of the companies in the same industry.
GPI is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.79, which indicates a very decent valuation of GPI.
Based on the Price/Forward Earnings ratio, GPI is valued cheaply inside the industry as 80.17% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than the industry average as 65.29% of the companies are valued more expensively.
68.59% 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 | 24 | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GPI does not grow enough to justify the current Price/Earnings ratio.
GPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.22
PEG (5Y)0.41
EPS Next 2Y6.1%
EPS Next 3Y7.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, GPI is not a good candidate for dividend investing.
GPI's Dividend Yield is a higher than the industry average which is at 4.99.
Compared to an average S&P500 Dividend Yield of 2.37, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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
5.41% of the earnings are spent on dividend by GPI. This is a low number and sustainable payout ratio.
GPI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP5.41%
EPS Next 2Y6.1%
EPS Next 3Y7.23%
477.22
-2.91 (-0.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners102.09%
Inst Owner Change0%
Ins Owners2.15%
Ins Owner Change-0.55%
Market Cap6.17B
Analysts78.57
Price Target489.02 (2.47%)
Short Float %7.86%
Short Ratio6.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend1.87
Dividend Growth(5Y)11.18%
DP5.41%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.55%
Min EPS beat(2)3.57%
Max EPS beat(2)9.53%
EPS beat(4)3
Avg EPS beat(4)4.02%
Min EPS beat(4)-0.7%
Max EPS beat(4)9.53%
EPS beat(8)6
Avg EPS beat(8)1.96%
EPS beat(12)10
Avg EPS beat(12)3.56%
EPS beat(16)14
Avg EPS beat(16)6.04%
Revenue beat(2)2
Avg Revenue beat(2)2.51%
Min Revenue beat(2)0.41%
Max Revenue beat(2)4.62%
Revenue beat(4)3
Avg Revenue beat(4)1.44%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)4.62%
Revenue beat(8)7
Avg Revenue beat(8)1.77%
Revenue beat(12)11
Avg Revenue beat(12)2.18%
Revenue beat(16)13
Avg Revenue beat(16)1.73%
PT rev (1m)3.13%
PT rev (3m)-4.85%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 10.79 | ||
| P/S | 0.29 | ||
| P/FCF | 24 | ||
| P/OCF | 12.56 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.33 |
EPS(TTM)39.94
EY8.37%
EPS(NY)44.21
Fwd EY9.26%
FCF(TTM)19.88
FCFY4.17%
OCF(TTM)37.99
OCFY7.96%
SpS1621.74
BVpS231.44
TBVpS-2.54
PEG (NY)2.22
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 15.69% | ||
| ROCE | 14.96% | ||
| ROIC | 8.42% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 13.21% | ||
| OM | 4.55% | ||
| PM (TTM) | 2.24% | ||
| GM | 16.17% | ||
| FCFM | 1.23% |
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%
ROICexcg growth 3Y-15.98%
ROICexcg 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-Score5
Asset Turnover2.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 19.31 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 197.39% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 3.82 | ||
| Cash Conversion | 45.77% | ||
| Profit Quality | 54.76% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 3.58 |
F-Score5
WACC8.77%
ROIC/WACC0.96
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)-6.75%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%7.03%
EPS Next Y5.39%
EPS Next 2Y6.1%
EPS Next 3Y7.23%
EPS Next 5Y9.56%
Revenue 1Y (TTM)15.13%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%23.15%
Revenue Next Year13.8%
Revenue Next 2Y8.53%
Revenue Next 3Y7.4%
Revenue Next 5Y6.26%
EBIT growth 1Y-0.16%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year15.25%
EBIT Next 3Y7.43%
EBIT Next 5Y7.19%
FCF growth 1Y-25.48%
FCF growth 3Y-32.63%
FCF growth 5Y13.77%
OCF growth 1Y-2.23%
OCF growth 3Y-22.5%
OCF growth 5Y9.6%