GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPI - US3989051095 - Common Stock
404.21 USD
-4.14 (-1.01%)
404.21 USD
0 (0%)
Taking everything into account, GPI scores 5 out of 10 in our fundamental rating. GPI was compared to 122 industry peers in the Specialty Retail industry. GPI has an average financial health and profitability rating. 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.
In the past year GPI had a positive cash flow from operations.
GPI had positive earnings in each of the past 5 years.
Each year in the past 5 years GPI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GPI (3.57%) is better than 63.11% of its industry peers.
GPI has a better Return On Equity (12.15%) than 68.85% of its industry peers.
The Return On Invested Capital of GPI (8.28%) is better than 69.67% of its industry peers.
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 11.71%.
| 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
GPI has a Profit Margin of 1.65%. This is comparable to the rest of the industry: GPI outperforms 59.02% of its industry peers.
GPI's Profit Margin has improved in the last couple of years.
GPI has a Operating Margin of 4.38%. This is in the better half of the industry: GPI outperforms 63.11% of its industry peers.
GPI's Operating Margin has improved in the last couple of years.
GPI's Gross Margin of 16.09% is on the low side compared to the rest of the industry. GPI is outperformed by 83.61% of its industry peers.
In the last couple of years the Gross Margin of GPI has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GPI is still creating some value.
GPI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GPI has been reduced compared to 5 years ago.
The debt/assets ratio for GPI is higher compared to a year ago.
2.2 Solvency
GPI has an Altman-Z score of 3.52. This indicates that GPI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.52, GPI belongs to the best of the industry, outperforming 82.79% 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.
A Debt/Equity ratio of 1.69 is on the high side and indicates that GPI has dependencies on debt financing.
The Debt to Equity ratio of GPI (1.69) is worse than 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.52 |
ROIC/WACC0.95
WACC8.7%
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.
GPI has a worse Current ratio (1.06) than 68.85% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.25, GPI is doing worse than 85.25% of the companies in the same industry.
| 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.
Looking at the last year, GPI shows a quite strong growth in Revenue. The Revenue has grown by 19.45% in the last year.
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.
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 9.58, the valuation of GPI can be described as very reasonable.
GPI's Price/Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 86.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, GPI is valued rather cheaply.
A Price/Forward Earnings ratio of 9.00 indicates a reasonable valuation of GPI.
GPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 89.34% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. GPI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than 71.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GPI is valued cheaply inside the industry as 86.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.35 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
The 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)1.09
PEG (5Y)0.33
EPS Next 2Y6.97%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, GPI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.64, GPI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
6.93% 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.
DP6.93%
EPS Next 2Y6.97%
EPS Next 3Y7.54%
404.21
-4.14 (-1.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.44%
Inst Owner Change-0.13%
Ins Owners2.15%
Ins Owner Change-1.07%
Market Cap5.11B
Revenue(TTM)22.54B
Net Income(TTM)371.10M
Analysts78.57
Price Target485.14 (20.02%)
Short Float %9.01%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)-3.5%
PT rev (3m)-2.82%
EPS NQ rev (1m)-3.69%
EPS NQ rev (3m)-3.22%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)1.68%
Revenue NQ rev (3m)2.08%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 9 | ||
| P/S | 0.23 | ||
| P/FCF | 10.35 | ||
| P/OCF | 6.56 | ||
| P/B | 1.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.76 |
EPS(TTM)42.21
EY10.44%
EPS(NY)44.93
Fwd EY11.12%
FCF(TTM)39.04
FCFY9.66%
OCF(TTM)61.58
OCFY15.24%
SpS1784.44
BVpS241.73
TBVpS-15.85
PEG (NY)1.09
PEG (5Y)0.33
Graham Number479.15
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 | 3.52 |
F-Score6
WACC8.7%
ROIC/WACC0.95
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 4 / 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%.