GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPI - US3989051095 - Common Stock
409.83 USD
+0.98 (+0.24%)
409.83 USD
0 (0%)
GPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. GPI has an average financial health and profitability rating. GPI is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
GPI had positive earnings in the past year.
GPI had a positive operating cash flow in the past year.
Each year in the past 5 years GPI has been profitable.
GPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.57%, GPI is doing good in the industry, outperforming 62.30% of the companies in the same industry.
The Return On Equity of GPI (12.15%) is better than 68.03% 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.
Measured over the past 3 years, the Average Return On Invested Capital for GPI is in line with the industry average of 12.16%.
| 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
GPI has a Profit Margin (1.65%) which is in line with its industry peers.
In the last couple of years the Profit Margin of GPI has grown nicely.
GPI has a Operating Margin of 4.38%. This is in the better half of the industry: GPI outperforms 62.30% of its industry peers.
In the last couple of years the Operating Margin of GPI has grown nicely.
GPI has a worse Gross Margin (16.09%) than 83.61% of its industry peers.
In the last couple of years the Gross Margin of GPI has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GPI is still creating some value.
The number of shares outstanding for GPI has been reduced compared to 1 year ago.
The number of shares outstanding for GPI has been reduced compared to 5 years ago.
GPI has a worse debt/assets ratio than last year.
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 Altman-Z score of 3.52. This is amongst the best in the industry. GPI outperforms 80.33% 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.
With a Debt to FCF ratio value of 10.91, GPI perfoms like the industry average, outperforming 54.92% of the companies in the same industry.
GPI has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GPI (1.69) is worse than 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.52 |
ROIC/WACC0.93
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.06 indicates that GPI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, GPI is doing worse than 70.49% of the companies in the same industry.
A Quick Ratio of 0.25 indicates that GPI may have some problems paying its short term obligations.
With a Quick ratio value of 0.25, GPI is not doing good in the industry: 86.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
GPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.99%, which is quite good.
Measured over the past years, GPI shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.17% on average per year.
GPI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.45%.
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)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
GPI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.25% yearly.
Based on estimates for the next years, GPI will show a small growth in Revenue. The Revenue will grow by 6.54% on average per year.
EPS Next Y7.99%
EPS Next 2Y6.71%
EPS Next 3Y8.02%
EPS Next 5Y9.25%
Revenue Next Year15.58%
Revenue Next 2Y9.28%
Revenue Next 3Y7.11%
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.
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
The Price/Earnings ratio is 9.71, which indicates a very decent valuation of GPI.
Based on the Price/Earnings ratio, GPI is valued cheaply inside the industry as 87.70% of the companies are valued more expensively.
GPI is valuated cheaply when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.17, the valuation of GPI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 90.98% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.66, GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 9.17 |
4.2 Price Multiples
GPI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPI is cheaper than 69.67% 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 84.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.5 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
The 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)1.21
PEG (5Y)0.33
EPS Next 2Y6.71%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
GPI has a yearly dividend return of 0.47%, which is pretty low.
Compared to an average industry Dividend Yield of 1.84, GPI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.47, GPI pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
On average, the dividend of GPI grows each year by 11.18%, which is quite nice.
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)11.18%
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 2Y6.71%
EPS Next 3Y8.02%
409.83
+0.98 (+0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.44%
Inst Owner Change-0.13%
Ins Owners2.15%
Ins Owner Change-0.06%
Market Cap5.18B
Revenue(TTM)22.54B
Net Income(TTM)371.10M
Analysts78.57
Price Target485.14 (18.38%)
Short Float %8.47%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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)-3.5%
PT rev (3m)-4.4%
EPS NQ rev (1m)1.63%
EPS NQ rev (3m)-4.44%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 9.17 | ||
| P/S | 0.23 | ||
| P/FCF | 10.5 | ||
| P/OCF | 6.65 | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.76 |
EPS(TTM)42.21
EY10.3%
EPS(NY)44.71
Fwd EY10.91%
FCF(TTM)39.04
FCFY9.53%
OCF(TTM)61.58
OCFY15.03%
SpS1784.44
BVpS241.73
TBVpS-15.85
PEG (NY)1.21
PEG (5Y)0.33
Graham Number479.15
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
WACC8.91%
ROIC/WACC0.93
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 Y7.99%
EPS Next 2Y6.71%
EPS Next 3Y8.02%
EPS Next 5Y9.25%
Revenue 1Y (TTM)19.45%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%10.75%
Revenue Next Year15.58%
Revenue Next 2Y9.28%
Revenue Next 3Y7.11%
Revenue Next 5Y6.54%
EBIT growth 1Y9.96%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year16.7%
EBIT Next 3Y7.5%
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%.