GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPI - US3989051095 - Common Stock
402.38 USD
+2.51 (+0.63%)
402.38 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to GPI. GPI was compared to 122 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 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.
Each year in the past 5 years GPI has been profitable.
GPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.57%, GPI is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
The Return On Equity of GPI (12.15%) is better 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 (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.
GPI's Operating Margin of 4.38% is fine compared to the rest of the industry. GPI outperforms 63.11% of its industry peers.
In the last couple of years the Operating Margin of GPI has grown nicely.
GPI has a Gross Margin of 16.09%. This is amonst the worse of the industry: GPI underperforms 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.
Compared to 1 year ago, GPI has less shares outstanding
GPI has less shares outstanding than it did 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 3.51. 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 81.97% 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.
The Debt to FCF ratio of GPI (10.91) is comparable to the rest of the industry.
GPI has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
GPI has a worse Debt to Equity ratio (1.69) than 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.51 |
ROIC/WACC0.96
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.06 indicates that GPI should not have too much problems paying its short term obligations.
The Current ratio of GPI (1.06) is worse 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.
GPI has a Quick ratio of 0.25. This is amonst the worse of the industry: GPI underperforms 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 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
The Revenue has grown by 19.45% in the past year. This is quite good.
Measured over the past years, GPI shows a quite strong growth in Revenue. The Revenue has been growing by 10.60% on average per year.
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
Based on estimates for the next years, GPI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.25% on average per year.
The Revenue is expected to grow by 6.54% on average over the next years.
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.
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 9.53, the valuation of GPI can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 85.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, GPI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.96, the valuation of GPI can be described as reasonable.
88.52% 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 (36.22), we can say GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
GPI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPI is cheaper than 68.85% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 87.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.31 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GPI has a very decent profitability rating, which 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
GPI has a yearly dividend return of 0.50%, which is pretty low.
GPI's Dividend Yield is a higher than the industry average which is at 5.64.
With a Dividend Yield of 0.50, GPI pays less dividend than the S&P500 average, which is at 2.32.
| 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 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 2Y6.97%
EPS Next 3Y7.54%
402.38
+2.51 (+0.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.2%
Inst Owner Change-0.13%
Ins Owners2.1%
Ins Owner Change-1.07%
Market Cap5.08B
Revenue(TTM)22.54B
Net Income(TTM)371.10M
Analysts78.46
Price Target485.14 (20.57%)
Short Float %9.01%
Short Ratio4.65
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-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 | 9.53 | ||
| Fwd PE | 8.96 | ||
| P/S | 0.23 | ||
| P/FCF | 10.31 | ||
| P/OCF | 6.53 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.69 |
EPS(TTM)42.21
EY10.49%
EPS(NY)44.93
Fwd EY11.17%
FCF(TTM)39.04
FCFY9.7%
OCF(TTM)61.58
OCFY15.3%
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 | 3.51 |
F-Score6
WACC8.66%
ROIC/WACC0.96
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%.