GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
NYSE:GPI • US3989051095
325.74 USD
-8.64 (-2.58%)
At close: Feb 27, 2026
325.74 USD
0 (0%)
After Hours: 2/27/2026, 8:07:34 PM
GPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. GPI has a medium profitability rating, but doesn't score so well on its financial health evaluation. GPI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year GPI was profitable.
- 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 4 of the past 5 years.
1.2 Ratios
- GPI's Return On Assets of 3.57% is fine compared to the rest of the industry. GPI outperforms 63.41% of its industry peers.
- GPI has a Return On Equity of 12.15%. This is in the better half of the industry: GPI outperforms 68.29% of its industry peers.
- With a decent Return On Invested Capital value of 8.10%, GPI is doing good in the industry, outperforming 71.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.15% | ||
| ROIC | 8.1% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- GPI has a Profit Margin (1.65%) which is in line with its industry peers.
- GPI's Profit Margin has declined in the last couple of years.
- GPI's Operating Margin of 4.38% is fine compared to the rest of the industry. GPI outperforms 64.23% of its industry peers.
- In the last couple of years the Operating Margin of GPI has declined.
- GPI has a worse Gross Margin (16.09%) than 81.30% of its industry peers.
- In the last couple of years the Gross Margin of GPI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 1.65% | ||
| GM | 16.09% |
OM growth 3Y-14.9%
OM growth 5Y-2.77%
PM growth 3Y-31.85%
PM growth 5Y-11.37%
GM growth 3Y-4.25%
GM growth 5Y-0.38%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GPI is destroying value.
- GPI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 3.42 indicates that GPI is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.42, GPI is in the better half of the industry, outperforming 76.42% of the companies in the same industry.
- GPI has a debt to FCF ratio of 10.91. This is a negative value and a sign of low solvency as GPI would need 10.91 years to pay back of all of its debts.
- GPI has a Debt to FCF ratio (10.91) which is in line with its industry peers.
- GPI has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.69, GPI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.42 |
ROIC/WACC0.92
WACC8.77%
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.
- The Current ratio of GPI (1.06) is worse than 68.29% 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 82.93% of the companies in the same industry.
| 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 3.67% over the past year.
- Measured over the past years, GPI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.65% on average per year.
- GPI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.23%.
- The Revenue has been growing by 16.32% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 9.63% on average over the next years. This is quite good.
- Based on estimates for the next years, GPI will show a small growth in Revenue. The Revenue will grow by 2.72% on average per year.
EPS Next Y8.16%
EPS Next 2Y8.73%
EPS Next 3Y10.64%
EPS Next 5Y9.63%
Revenue Next Year3.05%
Revenue Next 2Y3.4%
Revenue Next 3Y3.11%
Revenue Next 5Y2.72%
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.
- 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
- Based on the Price/Earnings ratio of 8.00, the valuation of GPI can be described as reasonable.
- Based on the Price/Earnings ratio, GPI is valued cheaply inside the industry as 94.31% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of GPI to the average of the S&P500 Index (27.07), we can say GPI is valued rather cheaply.
- GPI is valuated cheaply with a Price/Forward Earnings ratio of 7.40.
- Based on the Price/Forward Earnings ratio, GPI is valued cheaper than 94.31% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 7.4 |
4.2 Price Multiples
- 80.49% 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 86.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.95 | ||
| EV/EBITDA | 6.64 |
4.3 Compensation for Growth
- GPI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.98
PEG (5Y)0.45
EPS Next 2Y8.73%
EPS Next 3Y10.64%
5. Dividend
5.1 Amount
- GPI has a yearly dividend return of 0.66%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.33, GPI pays a bit more dividend than its industry peers.
- 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 | 0.66% |
5.2 History
- On average, the dividend of GPI grows each year by 11.18%, which is quite nice.
- 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 2Y8.73%
EPS Next 3Y10.64%
325.74
-8.64 (-2.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-22 2026-04-22
Inst Owners101.63%
Inst Owner Change195.2%
Ins Owners2.15%
Ins Owner Change0.46%
Market Cap3.92B
Revenue(TTM)22.57B
Net Income(TTM)371.10M
Analysts77.14
Price Target480.86 (47.62%)
Short Float %9.27%
Short Ratio5.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend1.87
Dividend Growth(5Y)11.18%
DP6.93%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-02 2026-03-02 (0.55)
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)0.92%
PT rev (3m)-0.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.3%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-2.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 7.4 | ||
| P/S | 0.17 | ||
| P/FCF | 7.95 | ||
| P/OCF | 5.04 | ||
| P/B | 1.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.64 |
EPS(TTM)40.71
EY12.5%
EPS(NY)44.03
Fwd EY13.52%
FCF(TTM)40.96
FCFY12.57%
OCF(TTM)64.6
OCFY19.83%
SpS1871.89
BVpS253.58
TBVpS-16.63
PEG (NY)0.98
PEG (5Y)0.45
Graham Number481.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.15% | ||
| ROCE | 13.98% | ||
| ROIC | 8.1% | ||
| ROICexc | 8.13% | ||
| ROICexgc | 12.78% | ||
| OM | 4.38% | ||
| PM (TTM) | 1.65% | ||
| GM | 16.09% | ||
| FCFM | 2.19% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-14.9%
OM growth 5Y-2.77%
PM growth 3Y-31.85%
PM growth 5Y-11.37%
GM growth 3Y-4.25%
GM growth 5Y-0.38%
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 | 3.42 |
F-Score6
WACC8.77%
ROIC/WACC0.92
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.67%
EPS 3Y-3.84%
EPS 5Y17.65%
EPS Q2Q%-14.94%
EPS Next Y8.16%
EPS Next 2Y8.73%
EPS Next 3Y10.64%
EPS Next 5Y9.63%
Revenue 1Y (TTM)13.23%
Revenue growth 3Y11.64%
Revenue growth 5Y16.32%
Sales Q2Q%0.61%
Revenue Next Year3.05%
Revenue Next 2Y3.4%
Revenue Next 3Y3.11%
Revenue Next 5Y2.72%
EBIT growth 1Y9.96%
EBIT growth 3Y-4.99%
EBIT growth 5Y13.1%
EBIT Next Year10.78%
EBIT Next 3Y7.47%
EBIT Next 5Y8.27%
FCF growth 1Y1794.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y353.53%
OCF growth 3YN/A
OCF growth 5YN/A
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 4 / 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 and the Price/Book (PB) ratio is 1.28.
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%.