GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:GPI • US3989051095
338.4 USD
-7.88 (-2.28%)
At close: Feb 9, 2026
338.4 USD
0 (0%)
After Hours: 2/9/2026, 8:04:52 PM
Overall GPI gets a fundamental rating of 4 out of 10. We evaluated GPI 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. GPI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
- Of the past 5 years GPI 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of GPI (3.57%) is better than 61.67% of its industry peers.
- With a decent Return On Equity value of 12.15%, GPI is doing good in the industry, outperforming 67.50% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.10%, GPI is in the better half of the industry, outperforming 69.17% of the companies in the same industry.
| 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
- GPI has a Profit Margin (1.65%) which is comparable to the rest of the industry.
- GPI's Profit Margin has declined in the last couple of years.
- GPI has a better Operating Margin (4.38%) than 63.33% of its industry peers.
- In the last couple of years the Operating Margin of GPI has declined.
- GPI has a Gross Margin of 16.09%. This is amonst the worse of the industry: GPI underperforms 82.50% of its industry peers.
- GPI's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GPI 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 3.46. This indicates that GPI is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.46, GPI is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
- 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 of 10.91. This is comparable 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.
- 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.91
WACC8.91%
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.
- GPI has a worse Current ratio (1.06) than 69.17% of its industry peers.
- A Quick Ratio of 0.25 indicates that GPI may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.25, GPI is doing worse than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
- GPI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.67%.
- GPI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.65% yearly.
- Looking at the last year, GPI shows a quite strong growth in Revenue. The Revenue has grown by 13.23% in the last year.
- The Revenue has been growing by 16.32% on average over the past years. This is quite good.
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
- GPI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.70% yearly.
- The Revenue is expected to grow by 4.49% on average over the next years.
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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- GPI is valuated reasonably with a Price/Earnings ratio of 8.31.
- GPI's Price/Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 92.50% of the companies in the same industry.
- GPI is valuated cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
- GPI is valuated cheaply with a Price/Forward Earnings ratio of 7.69.
- 95.83% 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 27.86, GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 7.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than 78.33% of the companies in the same industry.
- 86.67% 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 | 8.67 | ||
| EV/EBITDA | 7.05 |
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)1.02
PEG (5Y)0.47
EPS Next 2Y8.73%
EPS Next 3Y10.64%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.59%, GPI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.26, GPI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.59, GPI pays less dividend than the S&P500 average, which is at 1.80.
| 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
- GPI pays out 6.93% of its income as dividend. This is a sustainable payout ratio.
- GPI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP6.93%
EPS Next 2Y8.73%
EPS Next 3Y10.64%
338.4
-7.88 (-2.28%)
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 Cap4.27B
Revenue(TTM)22.57B
Net Income(TTM)371.10M
Analysts76.92
Price Target473.03 (39.78%)
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 | 8.31 | ||
| Fwd PE | 7.69 | ||
| P/S | 0.19 | ||
| P/FCF | 8.67 | ||
| P/OCF | 5.49 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.05 |
EPS(TTM)40.71
EY12.03%
EPS(NY)44.03
Fwd EY13.01%
FCF(TTM)39.04
FCFY11.54%
OCF(TTM)61.58
OCFY18.2%
SpS1784.44
BVpS241.73
TBVpS-15.85
PEG (NY)1.02
PEG (5Y)0.47
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 | 3.46 |
F-Score6
WACC8.91%
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 8.31 and the Price/Book (PB) ratio is 1.4.
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%.