GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
NYSE:GPI - New York Stock Exchange, Inc. - US3989051095 - Common Stock - Currency: USD
GPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. GPI has an average financial health and profitability rating. GPI has a correct valuation and a medium growth rate.
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.
GPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GPI has a better Return On Assets (4.96%) than 67.77% of its industry peers.
With a decent Return On Equity value of 16.39%, GPI is doing good in the industry, outperforming 74.38% of the companies in the same industry.
GPI has a Return On Invested Capital of 8.22%. This is in the better half of the industry: GPI outperforms 70.25% of its industry peers.
GPI had an Average Return On Invested Capital over the past 3 years of 11.08%. This is below the industry average of 13.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 16.39% | ||
| ROIC | 8.22% |
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 of 2.45%. This is in the better half of the industry: GPI outperforms 62.81% of its industry peers.
In the last couple of years the Profit Margin of GPI has grown nicely.
GPI has a better Operating Margin (4.63%) than 64.46% of its industry peers.
In the last couple of years the Operating Margin of GPI has grown nicely.
Looking at the Gross Margin, with a value of 16.26%, GPI is doing worse than 85.95% of the companies in the same industry.
In the last couple of years the Gross Margin of GPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.63% | ||
| PM (TTM) | 2.45% | ||
| GM | 16.26% |
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.
The number of shares outstanding for GPI has been reduced compared to 1 year ago.
GPI has less shares outstanding than it did 5 years ago.
GPI has a worse debt/assets ratio than last year.
2.2 Solvency
GPI has an Altman-Z score of 3.40. This indicates that GPI is financially healthy and has little risk of bankruptcy at the moment.
GPI's Altman-Z score of 3.40 is amongst the best of the industry. GPI outperforms 80.17% of its industry peers.
The Debt to FCF ratio of GPI is 14.46, which is on the high side as it means it would take GPI, 14.46 years of fcf income to pay off all of its debts.
GPI has a Debt to FCF ratio (14.46) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.60 is on the high side and indicates that GPI has dependencies on debt financing.
With a Debt to Equity ratio value of 1.60, GPI is not doing good in the industry: 66.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 14.46 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.97
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.03 indicates that GPI should not have too much problems paying its short term obligations.
GPI has a worse Current ratio (1.03) than 73.55% of its industry peers.
GPI has a Quick Ratio of 1.03. 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: 80.99% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
GPI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.82%.
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 11.53% in the past year. This is quite good.
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)-6.82%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%6.72%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%23.15%
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 8.68% yearly.
The Revenue is expected to grow by 6.03% on average over the next years.
EPS Next Y5.22%
EPS Next 2Y7.56%
EPS Next 3Y7.04%
EPS Next 5Y8.68%
Revenue Next Year13.44%
Revenue Next 2Y8.83%
Revenue Next 3Y7.06%
Revenue Next 5Y6.03%
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
A Price/Earnings ratio of 10.15 indicates a reasonable valuation of GPI.
Compared to the rest of the industry, the Price/Earnings ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 81.82% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GPI to the average of the S&P500 Index (28.78), we can say GPI is valued rather cheaply.
A Price/Forward Earnings ratio of 8.91 indicates a reasonable valuation of GPI.
Based on the Price/Forward Earnings ratio, GPI is valued cheaper than 80.17% of the companies in the same industry.
GPI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 8.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than 61.98% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPI indicates a somewhat cheap valuation: GPI is cheaper than 71.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.48 | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)0.35
EPS Next 2Y7.56%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
GPI has a yearly dividend return of 0.47%, which is pretty low.
GPI's Dividend Yield is a higher than the industry average which is at 5.39.
Compared to an average S&P500 Dividend Yield of 2.46, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of GPI is nicely growing with an annual growth rate of 11.18%!
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
5.17% 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.
DP5.17%
EPS Next 2Y7.56%
EPS Next 3Y7.04%
NYSE:GPI (4/28/2025, 11:45:54 AM)
404.925
-1.66 (-0.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.44%
Inst Owner Change1.25%
Ins Owners2.38%
Ins Owner Change-1.03%
Market Cap5.28B
Analysts81.54
Price Target487.39 (20.37%)
Short Float %9.34%
Short Ratio6.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend1.87
Dividend Growth(5Y)11.18%
DP5.17%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.41%
Min EPS beat(2)-0.7%
Max EPS beat(2)9.53%
EPS beat(4)3
Avg EPS beat(4)3.28%
Min EPS beat(4)-0.7%
Max EPS beat(4)9.53%
EPS beat(8)6
Avg EPS beat(8)2.94%
EPS beat(12)10
Avg EPS beat(12)4.49%
EPS beat(16)14
Avg EPS beat(16)7.34%
Revenue beat(2)2
Avg Revenue beat(2)3.32%
Min Revenue beat(2)2.02%
Max Revenue beat(2)4.62%
Revenue beat(4)3
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)4.62%
Revenue beat(8)7
Avg Revenue beat(8)2.39%
Revenue beat(12)11
Avg Revenue beat(12)2.21%
Revenue beat(16)13
Avg Revenue beat(16)2.15%
PT rev (1m)-3.66%
PT rev (3m)4.33%
EPS NQ rev (1m)1.04%
EPS NQ rev (3m)5.14%
EPS NY rev (1m)-1.35%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 8.91 | ||
| P/S | 0.26 | ||
| P/FCF | 15.48 | ||
| P/OCF | 9.01 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.9 |
EPS(TTM)39.91
EY9.86%
EPS(NY)45.43
Fwd EY11.22%
FCF(TTM)26.17
FCFY6.46%
OCF(TTM)44.96
OCFY11.1%
SpS1528.7
BVpS228.09
TBVpS-2.43
PEG (NY)1.94
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 16.39% | ||
| ROCE | 14.34% | ||
| ROIC | 8.22% | ||
| ROICexc | 8.26% | ||
| ROICexgc | 12.84% | ||
| OM | 4.63% | ||
| PM (TTM) | 2.45% | ||
| GM | 16.26% | ||
| FCFM | 1.71% |
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%
ROICexcg growth 3Y-15.98%
ROICexcg 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-Score4
Asset Turnover2.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 14.46 | ||
| Debt/EBITDA | 4.6 | ||
| Cap/Depr | 216.71% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 4.12 | ||
| Cash Conversion | 56.64% | ||
| Profit Quality | 69.99% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 3.4 |
F-Score4
WACC8.5%
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)-6.82%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%6.72%
EPS Next Y5.22%
EPS Next 2Y7.56%
EPS Next 3Y7.04%
EPS Next 5Y8.68%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%23.15%
Revenue Next Year13.44%
Revenue Next 2Y8.83%
Revenue Next 3Y7.06%
Revenue Next 5Y6.03%
EBIT growth 1Y-6.41%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year16.26%
EBIT Next 3Y6.45%
EBIT Next 5Y6.95%
FCF growth 1Y7008.33%
FCF growth 3Y-32.63%
FCF growth 5Y13.77%
OCF growth 1Y208.25%
OCF growth 3Y-22.5%
OCF growth 5Y9.6%