GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:GPI • US3989051095
346.28 USD
+5.55 (+1.63%)
At close: Feb 6, 2026
346.28 USD
0 (0%)
After Hours: 2/6/2026, 8:04:00 PM
We assign a fundamental rating of 4 out of 10 to GPI. GPI was compared to 120 industry peers in the Specialty Retail industry. While GPI is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- In the past 5 years GPI has always been profitable.
- 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 61.98% of its industry peers.
- With a decent Return On Equity value of 12.15%, GPI is doing good in the industry, outperforming 67.77% of the companies in the same industry.
- The Return On Invested Capital of GPI (8.10%) is better than 69.42% 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
- With a Profit Margin value of 1.65%, GPI perfoms like the industry average, outperforming 57.85% of the companies in the same industry.
- GPI's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 4.38%, GPI is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- GPI's Operating Margin has declined in the last couple of years.
- The Gross Margin of GPI (16.09%) is worse than 82.64% 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
- 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 3.46. 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 79.34% of the companies in the same industry.
- 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 has a Debt to FCF ratio (10.91) which is in line with its industry peers.
- GPI has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.69, GPI is doing worse than 66.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.91
WACC8.88%
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 69.42% of the companies in the same industry.
- 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.
- With a Quick ratio value of 0.25, GPI is not doing good in the industry: 85.12% 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 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.
- GPI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.23%.
- Measured over the past years, GPI shows a quite strong growth in Revenue. The Revenue has been growing by 16.32% on average per year.
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 10.70% on average per year.
- 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
- 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
- Based on the Price/Earnings ratio of 8.51, the valuation of GPI can be described as reasonable.
- Based on the Price/Earnings ratio, GPI is valued cheaper than 92.56% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GPI to the average of the S&P500 Index (27.93), we can say GPI is valued rather cheaply.
- GPI is valuated cheaply with a Price/Forward Earnings ratio of 7.86.
- Based on the Price/Forward Earnings ratio, GPI is valued cheaper than 95.87% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 27.77. GPI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 7.86 |
4.2 Price Multiples
- 77.69% of the companies in the same industry are more expensive than GPI, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, GPI is valued cheaply inside the industry as 86.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.87 | ||
| 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)1.04
PEG (5Y)0.48
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 1.81.
| 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 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.
- 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%
346.28
+5.55 (+1.63%)
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 Cap4.37B
Revenue(TTM)22.57B
Net Income(TTM)371.10M
Analysts76.92
Price Target473.03 (36.6%)
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 | 8.51 | ||
| Fwd PE | 7.86 | ||
| P/S | 0.19 | ||
| P/FCF | 8.87 | ||
| P/OCF | 5.62 | ||
| P/B | 1.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.05 |
EPS(TTM)40.71
EY11.76%
EPS(NY)44.03
Fwd EY12.72%
FCF(TTM)39.04
FCFY11.27%
OCF(TTM)61.58
OCFY17.78%
SpS1784.44
BVpS241.73
TBVpS-15.85
PEG (NY)1.04
PEG (5Y)0.48
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
WACC8.88%
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 8.51 and the Price/Book (PB) ratio is 1.43.
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%.