GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:GPI • US3989051095
354.26 USD
-8.9 (-2.45%)
At close: Jan 30, 2026
354 USD
-0.26 (-0.07%)
After Hours: 1/30/2026, 8:04:00 PM
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. There are concerns on the financial health of GPI while its profitability can be described as average. GPI is cheap, but on the other hand it scores bad on growth.
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.
- Of the past 5 years GPI 4 years were profitable.
- Of the past 5 years GPI 4 years had a positive operating cash flow.
1.2 Ratios
- GPI has a Return On Assets of 3.57%. This is in the better half of the industry: GPI outperforms 61.48% of its industry peers.
- GPI has a Return On Equity of 12.15%. This is in the better half of the industry: GPI outperforms 68.03% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.28%, GPI is in the better half of the industry, outperforming 69.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for GPI is in line with the industry average of 12.24%.
| 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
- With a Profit Margin value of 1.65%, GPI perfoms like the industry average, outperforming 58.20% of the companies in the same industry.
- GPI's Profit Margin has improved in the last couple of years.
- The Operating Margin of GPI (4.38%) is better than 62.30% 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 16.09%, GPI is doing worse than 82.79% of the companies in the same industry.
- GPI's Gross Margin has improved in the last couple of years.
| 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.
- There is no outstanding debt for GPI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- GPI has an Altman-Z score of 3.47. This indicates that GPI is financially healthy and has little risk of bankruptcy at the moment.
- GPI has a better Altman-Z score (3.47) than 80.33% of its industry peers.
- 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 of 10.91. This is comparable to the rest of the industry: GPI outperforms 53.28% of its industry peers.
- A Debt/Equity ratio of 1.69 is on the high side and indicates that GPI has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.69, GPI is not doing good in the industry: 67.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.47 |
ROIC/WACC0.93
WACC8.86%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that GPI should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.06, GPI is not doing good in the industry: 69.67% of the companies in the same industry are doing better.
- A Quick Ratio of 0.25 indicates that GPI may have some problems paying its short term obligations.
- GPI has a worse Quick ratio (0.25) than 85.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.54% over the past year.
- The Earnings Per Share has been growing by 17.62% on average over the past years. This is quite good.
EPS 1Y (TTM)3.54%
EPS 3Y-3.88%
EPS 5Y17.62%
EPS Q2Q%-15.44%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 10.73% on average per year.
- GPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y9.44%
EPS Next 2Y10.33%
EPS Next 3Y11.45%
EPS Next 5Y10.73%
Revenue Next Year3.3%
Revenue Next 2Y3.33%
Revenue Next 3Y4.77%
Revenue Next 5Y4.48%
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.
4. Valuation
4.1 Price/Earnings Ratio
- GPI is valuated reasonably with a Price/Earnings ratio of 8.71.
- Based on the Price/Earnings ratio, GPI is valued cheaper than 91.80% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GPI to the average of the S&P500 Index (28.30), we can say GPI is valued rather cheaply.
- The Price/Forward Earnings ratio is 7.96, which indicates a rather cheap valuation of GPI.
- Based on the Price/Forward Earnings ratio, GPI is valued cheaper than 93.44% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of GPI to the average of the S&P500 Index (25.57), we can say GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 7.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than 73.77% of the companies in the same industry.
- 86.07% of the companies in the same industry are more expensive than GPI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.07 | ||
| EV/EBITDA | 7.24 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- GPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.92
PEG (5Y)0.49
EPS Next 2Y10.33%
EPS Next 3Y11.45%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.55%, GPI is not a good candidate for dividend investing.
- GPI's Dividend Yield is a higher than the industry average which is at 2.15.
- Compared to an average S&P500 Dividend Yield of 1.82, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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
- GPI pays out 6.93% 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.
DP6.93%
EPS Next 2Y10.33%
EPS Next 3Y11.45%
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.
Can you provide the valuation status for GROUP 1 AUTOMOTIVE INC?
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.
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 8.71 and the Price/Book (PB) ratio is 1.47.
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%.