GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPI - US3989051095 - Common Stock
395.06 USD
-2.04 (-0.51%)
395.06 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to GPI. GPI was compared to 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of GPI get a neutral evaluation. Nothing too spectacular is happening here. GPI may be a bit undervalued, certainly considering the very reasonable score 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.
- Each year in the past 5 years GPI has been profitable.
- In the past 5 years GPI always reported a positive cash flow from operatings.
1.2 Ratios
- GPI's Return On Assets of 3.57% is fine compared to the rest of the industry. GPI outperforms 61.16% of its industry peers.
- With a decent Return On Equity value of 12.15%, GPI is doing good in the industry, outperforming 67.77% of the companies in the same industry.
- GPI has a Return On Invested Capital of 8.28%. This is in the better half of the industry: GPI outperforms 69.42% 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 12.37%.
| 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 (1.65%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of GPI has grown nicely.
- Looking at the Operating Margin, with a value of 4.38%, GPI is in the better half of the industry, outperforming 61.98% of the companies in the same industry.
- 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 82.64% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GPI is creating some value.
- The number of shares outstanding for GPI has been reduced compared to 1 year ago.
- Compared to 5 years ago, GPI has less shares outstanding
- The debt/assets ratio for GPI is higher compared to a year ago.
2.2 Solvency
- GPI has an Altman-Z score of 3.51. This indicates that GPI is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of GPI (3.51) is better than 80.17% 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's Debt to FCF ratio of 10.91 is in line compared to the rest of the industry. GPI outperforms 53.72% 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.
- GPI's Debt to Equity ratio of 1.69 is on the low side compared to the rest of the industry. GPI is outperformed by 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.51 |
ROIC/WACC0.92
WACC8.97%
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's Current ratio of 1.06 is on the low side compared to the rest of the industry. GPI is outperformed by 69.42% 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.
- With a Quick ratio value of 0.25, GPI is not doing good in the industry: 85.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.99% over the past year.
- The Earnings Per Share has been growing by 29.17% on average over the past years. This is a very strong growth
- GPI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.45%.
- 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.
- GPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.54% yearly.
EPS Next Y8.23%
EPS Next 2Y6.84%
EPS Next 3Y8.02%
EPS Next 5Y9.25%
Revenue Next Year15.4%
Revenue Next 2Y9.2%
Revenue Next 3Y7.11%
Revenue Next 5Y6.54%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- GPI is valuated reasonably with a Price/Earnings ratio of 9.36.
- Compared to the rest of the industry, the Price/Earnings ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 90.08% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. GPI is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 8.81, the valuation of GPI can be described as reasonable.
- 90.91% of the companies in the same industry are more expensive than GPI, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of GPI to the average of the S&P500 Index (24.29), we can say GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 8.81 |
4.2 Price Multiples
- 74.38% of the companies in the same industry are more expensive than GPI, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 85.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.12 | ||
| EV/EBITDA | 7.61 |
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)1.14
PEG (5Y)0.32
EPS Next 2Y6.84%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.50%, GPI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.08, GPI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.50, GPI pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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.
- GPI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP6.93%
EPS Next 2Y6.84%
EPS Next 3Y8.02%
395.06
-2.04 (-0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)01-29 2026-01-29/amc
Inst Owners101.63%
Inst Owner Change0.01%
Ins Owners2.15%
Ins Owner Change-0.23%
Market Cap4.99B
Revenue(TTM)22.54B
Net Income(TTM)371.10M
Analysts76.92
Price Target476.49 (20.61%)
Short Float %8.39%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend1.87
Dividend Growth(5Y)11.18%
DP6.93%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)-1.78%
PT rev (3m)-6.73%
EPS NQ rev (1m)-1.81%
EPS NQ rev (3m)-7.16%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 8.81 | ||
| P/S | 0.22 | ||
| P/FCF | 10.12 | ||
| P/OCF | 6.42 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.61 |
EPS(TTM)42.21
EY10.68%
EPS(NY)44.83
Fwd EY11.35%
FCF(TTM)39.04
FCFY9.88%
OCF(TTM)61.58
OCFY15.59%
SpS1784.44
BVpS241.73
TBVpS-15.85
PEG (NY)1.14
PEG (5Y)0.32
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 | 3.51 |
F-Score6
WACC8.97%
ROIC/WACC0.92
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 Y8.23%
EPS Next 2Y6.84%
EPS Next 3Y8.02%
EPS Next 5Y9.25%
Revenue 1Y (TTM)19.45%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%10.75%
Revenue Next Year15.4%
Revenue Next 2Y9.2%
Revenue Next 3Y7.11%
Revenue Next 5Y6.54%
EBIT growth 1Y9.96%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year16.7%
EBIT Next 3Y7.5%
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.
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 9.36 and the Price/Book (PB) ratio is 1.63.
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%.