GROUP 1 AUTOMOTIVE INC (GPI)
US3989051095 - Common Stock
Overall GPI gets a fundamental rating of 5 out of 10. We evaluated GPI against 125 industry peers in the Specialty Retail industry. While GPI belongs to the best of the industry regarding profitability, there are concerns on its financial health. GPI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GPI was profitable.
In the past year GPI had a positive cash flow from operations.
In the past 5 years GPI has always been profitable.
Each year in the past 5 years GPI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.78%, GPI is in the better half of the industry, outperforming 72.80% of the companies in the same industry.
With a decent Return On Equity value of 20.81%, GPI is doing good in the industry, outperforming 79.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.78%, GPI is in the better half of the industry, outperforming 74.40% 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 14.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 20.81% | ||
| ROIC | 9.78% |
ROA(3y)9.23%
ROA(5y)7.23%
ROE(3y)27.94%
ROE(5y)23.25%
ROIC(3y)12.99%
ROIC(5y)10.82%
1.3 Margins
GPI has a better Profit Margin (3.17%) than 66.40% of its industry peers.
In the last couple of years the Profit Margin of GPI has grown nicely.
Looking at the Operating Margin, with a value of 5.25%, GPI is in the better half of the industry, outperforming 65.60% 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 16.66%, GPI is doing worse than 85.60% of the companies in the same industry.
GPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.25% | ||
| PM (TTM) | 3.17% | ||
| GM | 16.66% |
OM growth 3Y3.83%
OM growth 5Y10.64%
PM growth 3Y8.03%
PM growth 5Y20.17%
GM growth 3Y1.09%
GM growth 5Y2.59%
2. Health
2.1 Basic Checks
GPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GPI has less shares outstanding than it did 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 3.59. This indicates that GPI is financially healthy and has little risk of bankruptcy at the moment.
GPI has a Altman-Z score of 3.59. This is in the better half of the industry: GPI outperforms 77.60% of its industry peers.
The Debt to FCF ratio of GPI is 47.86, which is on the high side as it means it would take GPI, 47.86 years of fcf income to pay off all of its debts.
GPI's Debt to FCF ratio of 47.86 is in line compared to the rest of the industry. GPI outperforms 45.60% of its industry peers.
A Debt/Equity ratio of 1.46 is on the high side and indicates that GPI has dependencies on debt financing.
GPI has a Debt to Equity ratio of 1.46. This is in the lower half of the industry: GPI underperforms 63.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 47.86 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.13
WACC8.63%
2.3 Liquidity
GPI has a Current Ratio of 1.04. 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 (1.04) is worse than 76.80% of its industry peers.
A Quick Ratio of 0.27 indicates that GPI may have some problems paying its short term obligations.
GPI has a Quick ratio of 0.27. This is in the lower half of the industry: GPI underperforms 77.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
GPI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.46%.
The Earnings Per Share has been growing by 37.71% on average over the past years. This is a very strong growth
The Revenue has grown by 10.34% in the past year. This is quite good.
The Revenue has been growing by 9.03% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.46%
EPS 3Y34.79%
EPS 5Y37.71%
EPS Q2Q%-12.81%
Revenue 1Y (TTM)10.34%
Revenue growth 3Y19.02%
Revenue growth 5Y9.03%
Sales Q2Q%8.24%
3.2 Future
The Earnings Per Share is expected to grow by 1.52% on average over the next years.
Based on estimates for the next years, GPI will show a small growth in Revenue. The Revenue will grow by 6.12% on average per year.
EPS Next Y-10.38%
EPS Next 2Y-4.77%
EPS Next 3Y0.2%
EPS Next 5Y1.52%
Revenue Next Year9.31%
Revenue Next 2Y8.96%
Revenue Next 3Y8.59%
Revenue Next 5Y6.12%
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
Based on the Price/Earnings ratio of 7.26, the valuation of GPI can be described as very cheap.
99.20% of the companies in the same industry are more expensive than GPI, based on the Price/Earnings ratio.
GPI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.05.
GPI is valuated cheaply with a Price/Forward Earnings ratio of 7.75.
91.20% 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 (20.07), we can say GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 7.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than 76.80% of the companies in the same industry.
GPI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.92 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
The decent profitability rating of GPI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-4.77%
EPS Next 3Y0.2%
5. Dividend
5.1 Amount
GPI has a yearly dividend return of 0.60%, which is pretty low.
Compared to an average industry Dividend Yield of 3.34, GPI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.60, GPI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
On average, the dividend of GPI grows each year by 11.05%, 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)11.05%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
4.37% 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.
DP4.37%
EPS Next 2Y-4.77%
EPS Next 3Y0.2%
GROUP 1 AUTOMOTIVE INC
NYSE:GPI (5/31/2024, 7:04:00 PM)
After market: 310.98 0 (0%)310.98
+3.25 (+1.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 7.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 20.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.25% | ||
| PM (TTM) | 3.17% | ||
| GM | 16.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-6.46%
EPS 3Y34.79%
EPS 5Y
EPS Q2Q%
EPS Next Y-10.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.34%
Revenue growth 3Y19.02%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y