GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
NYSE:GPI • US3989051095
333.185 USD
-2.82 (-0.84%)
Last: Feb 13, 2026, 02:54 PM
GPI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. There are concerns on the financial health of GPI while its profitability can be described as average. 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.
- In the past year GPI had a positive cash flow from operations.
- GPI had positive earnings in each of the past 5 years.
- Of the past 5 years GPI 4 years had a positive operating cash flow.
1.2 Ratios
- GPI's Return On Assets of 3.57% is fine compared to the rest of the industry. GPI outperforms 61.67% of its industry peers.
- Looking at the Return On Equity, with a value of 12.15%, GPI is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
- GPI has a better Return On Invested Capital (8.10%) than 69.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.15% | ||
| ROIC | 8.1% |
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
- Looking at the Profit Margin, with a value of 1.65%, GPI is in line with its industry, outperforming 58.33% of the companies in the same industry.
- In the last couple of years the Profit Margin of GPI has declined.
- With a decent Operating Margin value of 4.38%, GPI is doing good in the industry, outperforming 63.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of GPI has declined.
- GPI's Gross Margin of 16.09% is on the low side compared to the rest of the industry. GPI is outperformed by 82.50% of its industry peers.
- In the last couple of years the Gross Margin of GPI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 1.65% | ||
| GM | 16.09% |
OM growth 3Y-14.9%
OM growth 5Y-2.77%
PM growth 3Y-31.85%
PM growth 5Y-11.37%
GM growth 3Y-4.25%
GM growth 5Y-0.38%
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
- GPI has an Altman-Z score of 3.44. This indicates that GPI is financially healthy and has little risk of bankruptcy at the moment.
- GPI's Altman-Z score of 3.44 is fine compared to the rest of the industry. GPI outperforms 78.33% 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's Debt to FCF ratio of 10.91 is in line compared to the rest of the industry. GPI outperforms 52.50% of its industry peers.
- A Debt/Equity ratio of 1.69 is on the high side and indicates that GPI has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.69, GPI is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.91
WACC8.86%
2.3 Liquidity
- GPI has a Current Ratio of 1.06. This is a normal value and indicates that GPI is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.06, GPI is not doing good in the industry: 68.33% of the companies in the same industry are doing better.
- 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 Quick ratio of 0.25. This is amonst the worse of the industry: GPI underperforms 85.00% 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 been growing slightly by 3.67% over the past year.
- The Earnings Per Share has been growing by 17.65% on average over the past years. This is quite good.
- The Revenue has grown by 13.23% 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 16.32% yearly.
EPS 1Y (TTM)3.67%
EPS 3Y-3.84%
EPS 5Y17.65%
EPS Q2Q%-14.94%
Revenue 1Y (TTM)13.23%
Revenue growth 3Y11.64%
Revenue growth 5Y16.32%
Sales Q2Q%0.61%
3.2 Future
- The Earnings Per Share is expected to grow by 10.70% on average over the next years. This is quite good.
- Based on estimates for the next years, GPI will show a small growth in Revenue. The Revenue will grow by 4.49% on average per year.
EPS Next Y8.16%
EPS Next 2Y8.73%
EPS Next 3Y10.64%
EPS Next 5Y10.7%
Revenue Next Year3%
Revenue Next 2Y3.36%
Revenue Next 3Y3.04%
Revenue Next 5Y4.49%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
- The Price/Earnings ratio is 8.18, which indicates a very decent valuation of GPI.
- 93.33% of the companies in the same industry are more expensive than GPI, based on the Price/Earnings ratio.
- GPI is valuated cheaply when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 7.57, which indicates a rather cheap valuation of GPI.
- 95.00% of the companies in the same industry are more expensive than GPI, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.69, GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
- GPI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPI is cheaper than 77.50% of the companies in the same industry.
- GPI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GPI is cheaper than 85.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.53 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
- GPI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1
PEG (5Y)0.46
EPS Next 2Y8.73%
EPS Next 3Y10.64%
5. Dividend
5.1 Amount
- GPI has a yearly dividend return of 0.59%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.26, GPI pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.80, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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
- 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 2Y8.73%
EPS Next 3Y10.64%
NYSE:GPI (2/13/2026, 2:54:00 PM)
333.185
-2.82 (-0.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-22 2026-04-22
Inst Owners101.63%
Inst Owner Change197.22%
Ins Owners2.15%
Ins Owner Change-0.14%
Market Cap4.21B
Revenue(TTM)22.57B
Net Income(TTM)371.10M
Analysts76.92
Price Target473.03 (41.97%)
Short Float %9.32%
Short Ratio6.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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)-0.73%
PT rev (3m)-5.91%
EPS NQ rev (1m)-5.15%
EPS NQ rev (3m)-3.6%
EPS NY rev (1m)-1.77%
EPS NY rev (3m)-2.01%
Revenue NQ rev (1m)-2.93%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 7.57 | ||
| P/S | 0.19 | ||
| P/FCF | 8.53 | ||
| P/OCF | 5.41 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.93 |
EPS(TTM)40.71
EY12.22%
EPS(NY)44.03
Fwd EY13.22%
FCF(TTM)39.04
FCFY11.72%
OCF(TTM)61.58
OCFY18.48%
SpS1784.44
BVpS241.73
TBVpS-15.85
PEG (NY)1
PEG (5Y)0.46
Graham Number470.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.15% | ||
| ROCE | 13.98% | ||
| ROIC | 8.1% | ||
| ROICexc | 8.13% | ||
| ROICexgc | 12.78% | ||
| OM | 4.38% | ||
| PM (TTM) | 1.65% | ||
| GM | 16.09% | ||
| FCFM | 2.19% |
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-14.9%
OM growth 5Y-2.77%
PM growth 3Y-31.85%
PM growth 5Y-11.37%
GM growth 3Y-4.25%
GM growth 5Y-0.38%
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 | 3.44 |
F-Score6
WACC8.86%
ROIC/WACC0.91
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)3.67%
EPS 3Y-3.84%
EPS 5Y17.65%
EPS Q2Q%-14.94%
EPS Next Y8.16%
EPS Next 2Y8.73%
EPS Next 3Y10.64%
EPS Next 5Y10.7%
Revenue 1Y (TTM)13.23%
Revenue growth 3Y11.64%
Revenue growth 5Y16.32%
Sales Q2Q%0.61%
Revenue Next Year3%
Revenue Next 2Y3.36%
Revenue Next 3Y3.04%
Revenue Next 5Y4.49%
EBIT growth 1Y9.96%
EBIT growth 3Y-4.99%
EBIT growth 5Y13.1%
EBIT Next Year13.92%
EBIT Next 3Y8.42%
EBIT Next 5Y7.78%
FCF growth 1Y1794.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y353.53%
OCF growth 3YN/A
OCF growth 5YN/A
GROUP 1 AUTOMOTIVE INC / GPI FAQ
Can you provide the ChartMill fundamental rating for GROUP 1 AUTOMOTIVE INC?
ChartMill assigns a fundamental rating of 4 / 10 to GPI.
Can you provide the valuation status for GROUP 1 AUTOMOTIVE INC?
ChartMill assigns a valuation rating of 7 / 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 4 / 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 8.18 and the Price/Book (PB) ratio is 1.38.
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%.