GROUP 1 AUTOMOTIVE INC (GPI) Fundamental Analysis & Valuation

NYSE:GPI • US3989051095

Current stock price

325.18 USD
-6.33 (-1.91%)
At close:
325.18 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.

5

1. GPI Profitability Analysis

1.1 Basic Checks

  • In the past year GPI was profitable.
  • In the past year GPI had a positive cash flow from operations.
  • In the past 5 years GPI has always been profitable.
  • GPI had a positive operating cash flow in each of the past 5 years.
GPI Yearly Net Income VS EBIT VS OCF VS FCFGPI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

1.2 Ratios

  • GPI has a Return On Assets of 3.10%. This is in the better half of the industry: GPI outperforms 61.79% of its industry peers.
  • GPI has a Return On Equity of 11.52%. This is in the better half of the industry: GPI outperforms 68.29% of its industry peers.
  • GPI has a Return On Invested Capital of 7.41%. This is in the better half of the industry: GPI outperforms 69.11% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for GPI is below the industry average of 13.27%.
Industry RankSector 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%
GPI Yearly ROA, ROE, ROICGPI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • GPI has a Profit Margin of 1.42%. This is comparable to the rest of the industry: GPI outperforms 54.47% of its industry peers.
  • In the last couple of years the Profit Margin of GPI has declined.
  • GPI has a better Operating Margin (3.95%) than 63.41% of its industry peers.
  • In the last couple of years the Operating Margin of GPI has declined.
  • With a Gross Margin value of 16.05%, GPI is not doing good in the industry: 82.11% of the companies in the same industry are doing better.
  • GPI's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
GPI Yearly Profit, Operating, Gross MarginsGPI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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4

2. GPI Health Analysis

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.
  • GPI has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, GPI has a worse debt to assets ratio.
GPI Yearly Shares OutstandingGPI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M
GPI Yearly Total Debt VS Total AssetsGPI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 3.40 indicates that GPI is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 3.40, GPI belongs to the best of the industry, outperforming 81.30% 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.
  • GPI has a Debt/Equity ratio of 1.92. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.92, GPI is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.92
Debt/FCF 13.23
Altman-Z 3.4
ROIC/WACC1.23
WACC6.04%
GPI Yearly LT Debt VS Equity VS FCFGPI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.08 indicates that GPI should not have too much problems paying its short term obligations.
  • The Current ratio of GPI (1.08) is worse than 68.29% of its industry peers.
  • A Quick Ratio of 0.27 indicates that GPI may have some problems paying its short term obligations.
  • GPI has a Quick ratio of 0.27. This is in the lower half of the industry: GPI underperforms 76.42% of its industry peers.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.27
GPI Yearly Current Assets VS Current LiabilitesGPI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • 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 10.43% 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 Year2.68%
Revenue Next 2Y3.11%
Revenue Next 3Y2.85%
Revenue Next 5Y3.34%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
GPI Yearly Revenue VS EstimatesGPI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
GPI Yearly EPS VS EstimatesGPI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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7

4. GPI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 7.99, the valuation of GPI can be described as very cheap.
  • 91.06% of the companies in the same industry are more expensive than GPI, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of GPI to the average of the S&P500 Index (24.89), we can say GPI is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 7.58, the valuation of GPI can be described as very cheap.
  • GPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 91.87% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of GPI to the average of the S&P500 Index (22.19), we can say GPI is valued rather cheaply.
Industry RankSector Rank
PE 7.99
Fwd PE 7.58
GPI Price Earnings VS Forward Price EarningsGPI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • 69.11% 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 cheaper than 83.74% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.14
EV/EBITDA 7.46
GPI Per share dataGPI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 500 1K 1.5K

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.5
PEG (5Y)0.45
EPS Next 2Y8.12%
EPS Next 3Y9.45%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. GPI Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.66%, GPI is not a good candidate for dividend investing.
  • The stock price of GPI dropped by -20.21% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 2.75, GPI pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, GPI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.66%

5.2 History

  • The dividend of GPI is nicely growing with an annual growth rate of 27.52%!
  • 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)27.52%
Div Incr Years4
Div Non Decr Years4
GPI Yearly Dividends per shareGPI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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 Yearly Income VS Free CF VS DividendGPI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B
GPI Dividend Payout.GPI Dividend Payout, showing the Payout Ratio.GPI Dividend Payout.PayoutRetained Earnings

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GPI Fundamentals: All Metrics, Ratios and Statistics

GROUP 1 AUTOMOTIVE INC

NYSE:GPI (3/27/2026, 8:22:31 PM)

After market: 325.18 0 (0%)

325.18

-6.33 (-1.91%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)01-29
Earnings (Next)04-22
Inst Owners101.5%
Inst Owner Change195.14%
Ins Owners2.43%
Ins Owner Change0.46%
Market Cap3.88B
Revenue(TTM)22.57B
Net Income(TTM)321.30M
Analysts78.57
Price Target467.93 (43.9%)
Short Float %8.45%
Short Ratio5.37
Dividend
Industry RankSector Rank
Dividend Yield 0.66%
Yearly Dividend2.02
Dividend Growth(5Y)27.52%
DP7.97%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-02
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)0.63%
EPS NQ rev (3m)-4.55%
EPS NY rev (1m)-2.62%
EPS NY rev (3m)-4.34%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-1%
Valuation
Industry RankSector Rank
PE 7.99
Fwd PE 7.58
P/S 0.17
P/FCF 9.14
P/OCF 5.59
P/B 1.39
P/tB N/A
EV/EBITDA 7.46
EPS(TTM)40.71
EY12.52%
EPS(NY)42.88
Fwd EY13.19%
FCF(TTM)35.58
FCFY10.94%
OCF(TTM)58.21
OCFY17.9%
SpS1891.99
BVpS233.79
TBVpS-29.3
PEG (NY)1.5
PEG (5Y)0.45
Graham Number462.76
Profitability
Industry RankSector 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 RankSector 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
WACC6.04%
ROIC/WACC1.23
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 Year2.68%
Revenue Next 2Y3.11%
Revenue Next 3Y2.85%
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.


What is the profitability of GPI stock?

GROUP 1 AUTOMOTIVE INC (GPI) has a profitability rating of 5 / 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 7.99 and the Price/Book (PB) ratio is 1.39.


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%.