GROUP 1 AUTOMOTIVE INC (GPI)
US3989051095 - Common Stock
Overall GPI gets a fundamental rating of 5 out of 10. We evaluated GPI against 126 industry peers in the Specialty Retail industry. While GPI has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GPI.
1. Profitability
1.1 Basic Checks
GPI had positive earnings in the past year.
In the past year GPI had a positive cash flow from operations.
In the past 5 years GPI has always been profitable.
GPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GPI (7.55%) is better than 73.81% of its industry peers.
GPI has a Return On Equity of 21.95%. This is in the better half of the industry: GPI outperforms 77.78% of its industry peers.
GPI has a Return On Invested Capital of 10.94%. This is in the better half of the industry: GPI outperforms 76.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GPI is in line with the industry average of 13.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.55% | ||
| ROE | 21.95% | ||
| ROIC | 10.94% |
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 Profit Margin of 3.28%. This is in the better half of the industry: GPI outperforms 65.87% of its industry peers.
GPI's Profit Margin has improved in the last couple of years.
GPI has a Operating Margin of 5.51%. This is in the better half of the industry: GPI outperforms 65.08% of its industry peers.
In the last couple of years the Operating Margin of GPI has grown nicely.
With a Gross Margin value of 16.90%, GPI is not doing good in the industry: 84.13% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of GPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.51% | ||
| PM (TTM) | 3.28% | ||
| GM | 16.9% |
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
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.
GPI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.90 indicates that GPI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.90, GPI belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
GPI has a debt to FCF ratio of 763.38. This is a negative value and a sign of low solvency as GPI would need 763.38 years to pay back of all of its debts.
GPI has a Debt to FCF ratio (763.38) which is comparable to the rest of the industry.
GPI has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
GPI has a Debt to Equity ratio of 1.33. This is in the lower half of the industry: GPI underperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 763.38 | ||
| Altman-Z | 3.9 |
ROIC/WACC1.35
WACC8.11%
2.3 Liquidity
A Current Ratio of 1.11 indicates that GPI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.11, GPI is doing worse than 75.40% of the companies in the same industry.
GPI has a Quick Ratio of 1.11. 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 0.33, GPI is doing worse than 74.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
GPI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.39%.
GPI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.71% yearly.
GPI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.18%.
GPI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.03% yearly.
EPS 1Y (TTM)-3.39%
EPS 3Y34.79%
EPS 5Y37.71%
EPS growth Q2Q-12.52%
Revenue 1Y (TTM)10.18%
Revenue growth 3Y19.02%
Revenue growth 5Y9.03%
Revenue growth Q2Q10.1%
3.2 Future
Based on estimates for the next years, GPI will show a decrease in Earnings Per Share. The EPS will decrease by -3.68% on average per year.
The Revenue is expected to grow by 2.11% on average over the next years.
EPS Next Y-10.53%
EPS Next 2Y-4.81%
EPS Next 3Y-2.36%
EPS Next 5Y-3.68%
Revenue Next Year4.12%
Revenue Next 2Y3.43%
Revenue Next 3Y3.49%
Revenue Next 5Y2.11%
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
GPI is valuated cheaply with a Price/Earnings ratio of 6.78.
GPI's Price/Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.25, GPI is valued rather cheaply.
The Price/Forward Earnings ratio is 7.57, which indicates a rather cheap valuation of GPI.
96.03% 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 (21.67), we can say GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.78 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 81.75% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GPI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 843.56 | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
GPI has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as GPI's earnings are expected to decrease with -2.36% in the coming years.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-4.81%
EPS Next 3Y-2.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, GPI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.51, GPI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
On average, the dividend of GPI grows each year by 11.05%, which is quite nice.
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)11.05%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
4.29% of the earnings are spent on dividend by GPI. This is a low number and sustainable payout ratio.
DP4.29%
EPS Next 2Y-4.81%
EPS Next 3Y-2.36%
GROUP 1 AUTOMOTIVE INC
NYSE:GPI (4/24/2024, 7:06:11 PM)
After market: 299.71 0 (0%)299.71
+20.21 (+7.23%)
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 Cap4.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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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 | 6.78 | ||
| Fwd PE | 7.57 | ||
| 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)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.55% | ||
| ROE | 21.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.51% | ||
| PM (TTM) | 3.28% | ||
| GM | 16.9% | ||
| 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 Turnover2.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.33 | ||
| 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)
Growth
EPS 1Y (TTM)-3.39%
EPS 3Y34.79%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.18%
Revenue growth 3Y19.02%
Revenue growth 5Y
Revenue growth 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