GROUP 1 AUTOMOTIVE INC (GPI) Fundamental Analysis & Valuation
NYSE:GPI • US3989051095
Current stock price
323.96 USD
-3.04 (-0.93%)
At close:
323.96 USD
0 (0%)
After Hours:
This GPI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. GPI Profitability Analysis
1.1 Basic Checks
- In the past year GPI was profitable.
- GPI had a positive operating cash flow in the past year.
- Each year in the past 5 years GPI has been profitable.
- Each year in the past 5 years GPI had a positive operating cash flow.
1.2 Ratios
- GPI's Return On Assets of 3.10% is fine compared to the rest of the industry. GPI outperforms 61.29% of its industry peers.
- GPI's Return On Equity of 11.52% is fine compared to the rest of the industry. GPI outperforms 68.55% of its industry peers.
- GPI has a better Return On Invested Capital (7.41%) than 68.55% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GPI is below the industry average of 13.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 11.52% | ||
| ROIC | 7.41% |
ROA(3y)5.21%
ROA(5y)7.15%
ROE(3y)16.62%
ROE(5y)22.35%
ROIC(3y)8.64%
ROIC(5y)10.66%
1.3 Margins
- GPI has a Profit Margin (1.42%) which is in line with its industry peers.
- GPI's Profit Margin has declined in the last couple of years.
- GPI has a Operating Margin of 3.95%. This is in the better half of the industry: GPI outperforms 64.52% of its industry peers.
- GPI's Operating Margin has declined in the last couple of years.
- GPI has a worse Gross Margin (16.05%) than 80.65% 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 | 3.95% | ||
| PM (TTM) | 1.42% | ||
| GM | 16.05% |
OM growth 3Y-17.13%
OM growth 5Y-4.31%
PM growth 3Y-31.85%
PM growth 5Y-11.37%
GM growth 3Y-4.25%
GM growth 5Y-0.38%
2. GPI Health Analysis
2.1 Basic Checks
- GPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for GPI has been reduced compared to 1 year ago.
- Compared to 5 years ago, GPI has less shares outstanding
- The debt/assets ratio for GPI is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.40 indicates that GPI is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.40, GPI is doing good in the industry, outperforming 78.23% of the companies in the same industry.
- The Debt to FCF ratio of GPI is 13.23, which is on the high side as it means it would take GPI, 13.23 years of fcf income to pay off all of its debts.
- GPI has a Debt to FCF ratio (13.23) which is in line with its industry peers.
- A Debt/Equity ratio of 1.92 is on the high side and indicates that GPI has dependencies on debt financing.
- GPI's Debt to Equity ratio of 1.92 is on the low side compared to the rest of the industry. GPI is outperformed by 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 13.23 | ||
| Altman-Z | 3.4 |
ROIC/WACC1.24
WACC5.98%
2.3 Liquidity
- GPI has a Current Ratio of 1.08. 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 1.08, GPI is not doing good in the industry: 66.94% of the companies in the same industry are doing better.
- GPI has a Quick Ratio of 1.08. 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's Quick ratio of 0.27 is on the low side compared to the rest of the industry. GPI is outperformed by 76.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.27 |
3. GPI Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 3.67% over the past year.
- GPI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.65% yearly.
- The Revenue has grown by 13.23% in the past year. This is quite good.
- 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
- Based on estimates for the next years, GPI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.43% on average per year.
- GPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.34% yearly.
EPS Next Y5.33%
EPS Next 2Y8.12%
EPS Next 3Y9.45%
EPS Next 5Y10.43%
Revenue Next Year2.6%
Revenue Next 2Y2.84%
Revenue Next 3Y2.79%
Revenue Next 5Y3.34%
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. GPI Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 7.96, the valuation of GPI can be described as very cheap.
- Based on the Price/Earnings ratio, GPI is valued cheaper than 91.94% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.21, GPI is valued rather cheaply.
- GPI is valuated cheaply with a Price/Forward Earnings ratio of 7.56.
- GPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 91.94% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of GPI to the average of the S&P500 Index (23.10), we can say GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
- GPI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPI is cheaper than 70.16% 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 82.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.1 | ||
| EV/EBITDA | 7.48 |
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)1.49
PEG (5Y)0.45
EPS Next 2Y8.12%
EPS Next 3Y9.45%
5. GPI Dividend Analysis
5.1 Amount
- GPI has a yearly dividend return of 0.68%, which is pretty low.
- GPI's Dividend Yield is a higher than the industry average which is at 3.06.
- Compared to an average S&P500 Dividend Yield of 1.89, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
- On average, the dividend of GPI grows each year by 27.52%, which is quite nice.
- GPI has been paying a dividend for at least 10 years, so it has a reliable track record.
- As GPI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)27.52%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 7.97% 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.
DP7.97%
EPS Next 2Y8.12%
EPS Next 3Y9.45%
GPI Fundamentals: All Metrics, Ratios and Statistics
323.96
-3.04 (-0.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-29 2026-04-29
Inst Owners101.5%
Inst Owner Change0%
Ins Owners2.43%
Ins Owner Change0.46%
Market Cap3.86B
Revenue(TTM)22.57B
Net Income(TTM)321.30M
Analysts81.33
Price Target467.93 (44.44%)
Short Float %9.14%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend2.02
Dividend Growth(5Y)27.52%
DP7.97%
Div Incr Years5
Div Non Decr Years5
Ex-Date03-02 2026-03-02 (0.55)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.83%
Min EPS beat(2)-10.12%
Max EPS beat(2)-3.54%
EPS beat(4)2
Avg EPS beat(4)-0.66%
Min EPS beat(4)-10.12%
Max EPS beat(4)7.46%
EPS beat(8)5
Avg EPS beat(8)1.31%
EPS beat(12)8
Avg EPS beat(12)1.74%
EPS beat(16)12
Avg EPS beat(16)3.2%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)1.18%
Revenue beat(4)3
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)1.18%
Revenue beat(8)6
Avg Revenue beat(8)0.89%
Revenue beat(12)10
Avg Revenue beat(12)1.65%
Revenue beat(16)14
Avg Revenue beat(16)1.7%
PT rev (1m)-2.69%
PT rev (3m)-1.8%
EPS NQ rev (1m)-2.27%
EPS NQ rev (3m)-7.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.34%
Revenue NQ rev (1m)-1.78%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 7.56 | ||
| P/S | 0.17 | ||
| P/FCF | 9.1 | ||
| P/OCF | 5.56 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.48 |
EPS(TTM)40.71
EY12.57%
EPS(NY)42.88
Fwd EY13.24%
FCF(TTM)35.58
FCFY10.98%
OCF(TTM)58.21
OCFY17.97%
SpS1891.99
BVpS233.79
TBVpS-29.3
PEG (NY)1.49
PEG (5Y)0.45
Graham Number462.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 11.52% | ||
| ROCE | 12.82% | ||
| ROIC | 7.41% | ||
| ROICexc | 7.43% | ||
| ROICexgc | 11.54% | ||
| OM | 3.95% | ||
| PM (TTM) | 1.42% | ||
| GM | 16.05% | ||
| FCFM | 1.88% |
ROA(3y)5.21%
ROA(5y)7.15%
ROE(3y)16.62%
ROE(5y)22.35%
ROIC(3y)8.64%
ROIC(5y)10.66%
ROICexc(3y)8.69%
ROICexc(5y)10.72%
ROICexgc(3y)13.38%
ROICexgc(5y)16.77%
ROCE(3y)15.29%
ROCE(5y)18.13%
ROICexgc growth 3Y-19.95%
ROICexgc growth 5Y-1.61%
ROICexc growth 3Y-19.28%
ROICexc growth 5Y-3.6%
OM growth 3Y-17.13%
OM growth 5Y-4.31%
PM growth 3Y-31.85%
PM growth 5Y-11.37%
GM growth 3Y-4.25%
GM growth 5Y-0.38%
F-Score6
Asset Turnover2.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 13.23 | ||
| Debt/EBITDA | 5.29 | ||
| Cap/Depr | 222.96% | ||
| Cap/Sales | 1.2% | ||
| Interest Coverage | 3.32 | ||
| Cash Conversion | 68.65% | ||
| Profit Quality | 132.12% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 3.4 |
F-Score6
WACC5.98%
ROIC/WACC1.24
Cap/Depr(3y)213.73%
Cap/Depr(5y)199.47%
Cap/Sales(3y)1.15%
Cap/Sales(5y)1.1%
Profit Quality(3y)67.61%
Profit Quality(5y)94.16%
High Growth Momentum
Growth
EPS 1Y (TTM)3.67%
EPS 3Y-3.84%
EPS 5Y17.65%
EPS Q2Q%-14.94%
EPS Next Y5.33%
EPS Next 2Y8.12%
EPS Next 3Y9.45%
EPS Next 5Y10.43%
Revenue 1Y (TTM)13.23%
Revenue growth 3Y11.64%
Revenue growth 5Y16.32%
Sales Q2Q%0.61%
Revenue Next Year2.6%
Revenue Next 2Y2.84%
Revenue Next 3Y2.79%
Revenue Next 5Y3.34%
EBIT growth 1Y-3.41%
EBIT growth 3Y-7.48%
EBIT growth 5Y11.31%
EBIT Next Year9.72%
EBIT Next 3Y7.62%
EBIT Next 5Y7.82%
FCF growth 1Y24.41%
FCF growth 3Y-0.46%
FCF growth 5Y-9.58%
OCF growth 1Y18.45%
OCF growth 3Y5.83%
OCF growth 5Y-2.92%
GROUP 1 AUTOMOTIVE INC / GPI Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for GROUP 1 AUTOMOTIVE INC?
ChartMill assigns a fundamental rating of 5 / 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.
How profitable is GROUP 1 AUTOMOTIVE INC (GPI) stock?
GROUP 1 AUTOMOTIVE INC (GPI) has a profitability rating of 5 / 10.
How financially healthy is GROUP 1 AUTOMOTIVE INC?
The financial health rating of GROUP 1 AUTOMOTIVE INC (GPI) is 3 / 10.
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 7.97%.