GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - NYSE:GPI - US3989051095 - Common Stock
452.55 USD
-5.9 (-1.29%)
Overall GPI gets a fundamental rating of 5 out of 10. We evaluated GPI against 121 industry peers in the Specialty Retail industry. GPI scores excellent on profitability, but 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.
GPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.63%, GPI is doing good in the industry, outperforming 66.12% of the companies in the same industry.
GPI's Return On Equity of 15.09% is fine compared to the rest of the industry. GPI outperforms 74.38% of its industry peers.
With a decent Return On Invested Capital value of 8.43%, GPI is doing good in the industry, outperforming 71.90% of the companies in the same industry.
GPI had an Average Return On Invested Capital over the past 3 years of 11.08%. This is in line with the industry average of 12.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 15.09% | ||
| ROIC | 8.43% |
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
The Profit Margin of GPI (2.15%) is better than 60.33% of its industry peers.
GPI's Profit Margin has improved in the last couple of years.
The Operating Margin of GPI (4.53%) is better than 66.12% of its industry peers.
GPI's Operating Margin has improved in the last couple of years.
GPI's Gross Margin of 16.20% is on the low side compared to the rest of the industry. GPI is outperformed by 84.30% of its industry peers.
In the last couple of years the Gross Margin of GPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.53% | ||
| PM (TTM) | 2.15% | ||
| GM | 16.2% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GPI is creating some value.
Compared to 1 year ago, GPI has less shares outstanding
GPI has less shares outstanding than it did 5 years ago.
GPI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.59 indicates that GPI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.59, GPI is in the better half of the industry, outperforming 78.51% of the companies in the same industry.
GPI has a debt to FCF ratio of 8.59. This is a slightly negative value and a sign of low solvency as GPI would need 8.59 years to pay back of all of its debts.
GPI's Debt to FCF ratio of 8.59 is in line compared to the rest of the industry. GPI outperforms 59.50% of its industry peers.
A Debt/Equity ratio of 1.59 is on the high side and indicates that GPI has dependencies on debt financing.
GPI has a worse Debt to Equity ratio (1.59) than 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 3.59 |
ROIC/WACC0.94
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.05 indicates that GPI should not have too much problems paying its short term obligations.
The Current ratio of GPI (1.05) is worse than 71.07% of its industry peers.
GPI has a Quick Ratio of 1.05. This is a bad value and indicates that GPI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.24, GPI is doing worse than 85.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
GPI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.86%.
GPI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.17% yearly.
The Revenue has grown by 19.75% 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)1.86%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%17.55%
Revenue 1Y (TTM)19.75%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%21.44%
3.2 Future
The Earnings Per Share is expected to grow by 9.11% on average over the next years. This is quite good.
GPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.26% yearly.
EPS Next Y8.51%
EPS Next 2Y6.94%
EPS Next 3Y7.03%
EPS Next 5Y9.11%
Revenue Next Year14.63%
Revenue Next 2Y9.08%
Revenue Next 3Y7.29%
Revenue Next 5Y6.26%
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
With a Price/Earnings ratio of 10.86, the valuation of GPI can be described as very reasonable.
84.30% of the companies in the same industry are more expensive than GPI, based on the Price/Earnings ratio.
GPI is valuated cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
GPI is valuated reasonably with a Price/Forward Earnings ratio of 10.08.
Based on the Price/Forward Earnings ratio, GPI is valued cheaper than 83.47% of the companies in the same industry.
GPI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
GPI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPI is cheaper than 68.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GPI is valued cheaply inside the industry as 87.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.75 | ||
| EV/EBITDA | 8.17 |
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)1.28
PEG (5Y)0.37
EPS Next 2Y6.94%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
GPI has a yearly dividend return of 0.41%, which is pretty low.
Compared to an average industry Dividend Yield of 5.21, GPI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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 5.41% 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.
DP5.41%
EPS Next 2Y6.94%
EPS Next 3Y7.03%
NYSE:GPI (9/16/2025, 12:00:46 PM)
452.55
-5.9 (-1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change-5.05%
Ins Owners2.1%
Ins Owner Change-1.28%
Market Cap5.86B
Analysts77.14
Price Target507.45 (12.13%)
Short Float %7.7%
Short Ratio5.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend1.87
Dividend Growth(5Y)11.18%
DP5.41%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.51%
Min EPS beat(2)3.57%
Max EPS beat(2)7.46%
EPS beat(4)3
Avg EPS beat(4)4.96%
Min EPS beat(4)-0.7%
Max EPS beat(4)9.53%
EPS beat(8)6
Avg EPS beat(8)2.29%
EPS beat(12)10
Avg EPS beat(12)3.38%
EPS beat(16)14
Avg EPS beat(16)4.61%
Revenue beat(2)2
Avg Revenue beat(2)0.42%
Min Revenue beat(2)0.41%
Max Revenue beat(2)0.43%
Revenue beat(4)4
Avg Revenue beat(4)1.87%
Min Revenue beat(4)0.41%
Max Revenue beat(4)4.62%
Revenue beat(8)7
Avg Revenue beat(8)1.39%
Revenue beat(12)11
Avg Revenue beat(12)2.14%
Revenue beat(16)13
Avg Revenue beat(16)1.22%
PT rev (1m)2.4%
PT rev (3m)5.5%
EPS NQ rev (1m)3.81%
EPS NQ rev (3m)5.35%
EPS NY rev (1m)3.4%
EPS NY rev (3m)3.53%
Revenue NQ rev (1m)1.58%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 10.08 | ||
| P/S | 0.27 | ||
| P/FCF | 9.75 | ||
| P/OCF | 6.76 | ||
| P/B | 1.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.17 |
EPS(TTM)41.66
EY9.21%
EPS(NY)44.91
Fwd EY9.92%
FCF(TTM)46.43
FCFY10.26%
OCF(TTM)66.99
OCFY14.8%
SpS1698.32
BVpS242.35
TBVpS-11.48
PEG (NY)1.28
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 15.09% | ||
| ROCE | 14.31% | ||
| ROIC | 8.43% | ||
| ROICexc | 8.48% | ||
| ROICexgc | 13.48% | ||
| OM | 4.53% | ||
| PM (TTM) | 2.15% | ||
| GM | 16.2% | ||
| FCFM | 2.73% |
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-Score6
Asset Turnover2.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 8.59 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 223.43% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 77.84% | ||
| Profit Quality | 126.97% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 3.59 |
F-Score6
WACC8.98%
ROIC/WACC0.94
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)1.86%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%17.55%
EPS Next Y8.51%
EPS Next 2Y6.94%
EPS Next 3Y7.03%
EPS Next 5Y9.11%
Revenue 1Y (TTM)19.75%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%21.44%
Revenue Next Year14.63%
Revenue Next 2Y9.08%
Revenue Next 3Y7.29%
Revenue Next 5Y6.26%
EBIT growth 1Y9.03%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year16.7%
EBIT Next 3Y7.43%
EBIT Next 5Y7.17%
FCF growth 1Y110.51%
FCF growth 3Y-32.63%
FCF growth 5Y13.77%
OCF growth 1Y86.59%
OCF growth 3Y-22.5%
OCF growth 5Y9.6%