GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - NYSE:GPI - US3989051095 - Common Stock
383.22 USD
-8.69 (-2.22%)
382.5 USD
-0.72 (-0.19%)
GPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In the past 5 years GPI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.57%, GPI is doing good in the industry, outperforming 63.11% of the companies in the same industry.
GPI has a better Return On Equity (12.15%) than 68.85% of its industry peers.
GPI's Return On Invested Capital of 8.28% is fine compared to the rest 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 11.81%.
| 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
Looking at the Profit Margin, with a value of 1.65%, GPI is in line with its industry, outperforming 57.38% of the companies in the same industry.
GPI's Profit Margin has improved in the last couple of years.
GPI has a better Operating Margin (4.38%) than 63.11% 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 84.43% of its industry peers.
GPI's Gross Margin has improved in the last couple of years.
| 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
GPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 3.51 indicates that GPI is not in any danger for bankruptcy at the moment.
GPI has a better Altman-Z score (3.51) than 78.69% of its industry peers.
The Debt to FCF ratio of GPI is 10.91, which is on the high side as it means it would take GPI, 10.91 years of fcf income to pay off 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 54.10% of its industry peers.
GPI has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
GPI has a Debt to Equity ratio of 1.69. This is in the lower half of the industry: GPI underperforms 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.51 |
ROIC/WACC0.97
WACC8.57%
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.
The Current ratio of GPI (1.06) is worse than 70.49% of its industry peers.
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.
The Revenue has grown by 19.45% in the past year. This is quite good.
The Revenue has been growing by 10.60% on average over the past years. This is quite good.
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 Y8.78%
EPS Next 2Y6.97%
EPS Next 3Y7.54%
EPS Next 5Y9.25%
Revenue Next Year15.28%
Revenue Next 2Y9.44%
Revenue Next 3Y7.27%
Revenue Next 5Y6.54%
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
Based on the Price/Earnings ratio of 9.08, the valuation of GPI can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 86.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.56, GPI is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.53, the valuation of GPI can be described as very reasonable.
88.52% of the companies in the same industry are more expensive than GPI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.62. GPI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than 66.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 85.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.06 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
GPI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GPI may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)0.31
EPS Next 2Y6.97%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
GPI has a yearly dividend return of 0.51%, which is pretty low.
Compared to an average industry Dividend Yield of 5.49, GPI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of GPI is nicely growing with an annual growth rate of 11.18%!
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
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 2Y6.97%
EPS Next 3Y7.54%
383.22
-8.69 (-2.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.2%
Inst Owner Change0.56%
Ins Owners2.1%
Ins Owner Change-2.18%
Market Cap4.96B
Revenue(TTM)22.54B
Net Income(TTM)371.10M
Analysts78.46
Price Target502.71 (31.18%)
Short Float %8.9%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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)-1.59%
PT rev (3m)1.44%
EPS NQ rev (1m)-6.97%
EPS NQ rev (3m)-3.49%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)3.66%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 8.53 | ||
| P/S | 0.22 | ||
| P/FCF | 10.06 | ||
| P/OCF | 6.38 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.68 |
EPS(TTM)42.21
EY11.01%
EPS(NY)44.93
Fwd EY11.73%
FCF(TTM)38.11
FCFY9.94%
OCF(TTM)60.11
OCFY15.69%
SpS1741.69
BVpS235.94
TBVpS-15.47
PEG (NY)1.03
PEG (5Y)0.31
Graham Number473.37
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 | 3.51 |
F-Score6
WACC8.57%
ROIC/WACC0.97
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 Y8.78%
EPS Next 2Y6.97%
EPS Next 3Y7.54%
EPS Next 5Y9.25%
Revenue 1Y (TTM)19.45%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%10.75%
Revenue Next Year15.28%
Revenue Next 2Y9.44%
Revenue Next 3Y7.27%
Revenue Next 5Y6.54%
EBIT growth 1Y9.96%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year17.6%
EBIT Next 3Y8.17%
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 3 / 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%.