GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - NYSE:GPI - US3989051095 - Common Stock
454 USD
-2.3 (-0.5%)
GPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. While GPI has a great profitability rating, there are quite some concerns on its financial health. GPI is valued quite cheap, while showing a decent growth score. This is a good 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
GPI's Return On Assets of 4.63% is fine compared to the rest of the industry. GPI outperforms 66.39% of its industry peers.
With a decent Return On Equity value of 15.09%, GPI is doing good in the industry, outperforming 74.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.43%, GPI is in the better half of the industry, outperforming 71.31% of the companies in the same industry.
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 12.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 15.09% | ||
| ROIC | 8.43% |
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
The Profit Margin of GPI (2.15%) is better than 60.66% of its industry peers.
In the last couple of years the Profit Margin of GPI has grown nicely.
The Operating Margin of GPI (4.53%) is better than 66.39% of its industry peers.
GPI's Operating Margin has improved in the last couple of years.
GPI has a worse Gross Margin (16.20%) than 84.43% of its industry peers.
GPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.53% | ||
| PM (TTM) | 2.15% | ||
| GM | 16.2% |
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
GPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GPI has been reduced compared to 1 year ago.
GPI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GPI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.59 indicates that GPI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.59, GPI is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
The Debt to FCF ratio of GPI is 8.59, which is on the high side as it means it would take GPI, 8.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.59, GPI is in line with its industry, outperforming 59.02% of the companies in the same industry.
GPI has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
GPI's Debt to Equity ratio of 1.59 is on the low side compared to the rest of the industry. GPI is outperformed by 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 3.59 |
ROIC/WACC0.94
WACC8.95%
2.3 Liquidity
A Current Ratio of 1.05 indicates that GPI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.05, GPI is not doing good in the industry: 71.31% of the companies in the same industry are doing better.
A Quick Ratio of 0.24 indicates that GPI may have some problems paying its short term obligations.
GPI has a worse Quick ratio (0.24) than 86.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.86% 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 19.75%.
GPI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.60% yearly.
EPS 1Y (TTM)1.86%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%17.55%
Revenue 1Y (TTM)19.75%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%21.44%
3.2 Future
The Earnings Per Share is expected to grow by 9.11% on average over the next years. This is quite good.
GPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.26% yearly.
EPS Next Y8.51%
EPS Next 2Y6.94%
EPS Next 3Y7.03%
EPS Next 5Y9.11%
Revenue Next Year14.63%
Revenue Next 2Y9.08%
Revenue Next 3Y7.29%
Revenue Next 5Y6.26%
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 10.90, the valuation of GPI can be described as reasonable.
Based on the Price/Earnings ratio, GPI is valued cheaply inside the industry as 84.43% of the companies are valued more expensively.
GPI is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.11 indicates a reasonable valuation of GPI.
Based on the Price/Forward Earnings ratio, GPI is valued cheaply inside the industry as 81.97% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. GPI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than the industry average as 67.21% of the companies are valued more expensively.
GPI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GPI is cheaper than 87.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.78 | ||
| EV/EBITDA | 8.14 |
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)1.28
PEG (5Y)0.37
EPS Next 2Y6.94%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
GPI has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 5.22, GPI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.43, GPI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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 5.41% 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.
DP5.41%
EPS Next 2Y6.94%
EPS Next 3Y7.03%
NYSE:GPI (9/22/2025, 10:26:56 AM)
454
-2.3 (-0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change-5.05%
Ins Owners2.1%
Ins Owner Change-1.28%
Market Cap5.87B
Analysts77.14
Price Target507.45 (11.77%)
Short Float %7.7%
Short Ratio5.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend1.87
Dividend Growth(5Y)11.18%
DP5.41%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.51%
Min EPS beat(2)3.57%
Max EPS beat(2)7.46%
EPS beat(4)3
Avg EPS beat(4)4.96%
Min EPS beat(4)-0.7%
Max EPS beat(4)9.53%
EPS beat(8)6
Avg EPS beat(8)2.29%
EPS beat(12)10
Avg EPS beat(12)3.38%
EPS beat(16)14
Avg EPS beat(16)4.61%
Revenue beat(2)2
Avg Revenue beat(2)0.42%
Min Revenue beat(2)0.41%
Max Revenue beat(2)0.43%
Revenue beat(4)4
Avg Revenue beat(4)1.87%
Min Revenue beat(4)0.41%
Max Revenue beat(4)4.62%
Revenue beat(8)7
Avg Revenue beat(8)1.39%
Revenue beat(12)11
Avg Revenue beat(12)2.14%
Revenue beat(16)13
Avg Revenue beat(16)1.22%
PT rev (1m)2.4%
PT rev (3m)3.77%
EPS NQ rev (1m)1.97%
EPS NQ rev (3m)5.35%
EPS NY rev (1m)0%
EPS NY rev (3m)2.95%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.11 | ||
| P/S | 0.27 | ||
| P/FCF | 9.78 | ||
| P/OCF | 6.78 | ||
| P/B | 1.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.14 |
EPS(TTM)41.66
EY9.18%
EPS(NY)44.91
Fwd EY9.89%
FCF(TTM)46.43
FCFY10.23%
OCF(TTM)66.99
OCFY14.76%
SpS1698.32
BVpS242.35
TBVpS-11.48
PEG (NY)1.28
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 15.09% | ||
| ROCE | 14.31% | ||
| ROIC | 8.43% | ||
| ROICexc | 8.48% | ||
| ROICexgc | 13.48% | ||
| OM | 4.53% | ||
| PM (TTM) | 2.15% | ||
| GM | 16.2% | ||
| FCFM | 2.73% |
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%
ROICexcg growth 3Y-15.98%
ROICexcg 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 Turnover2.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 8.59 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 223.43% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 77.84% | ||
| Profit Quality | 126.97% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 3.59 |
F-Score6
WACC8.95%
ROIC/WACC0.94
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)1.86%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%17.55%
EPS Next Y8.51%
EPS Next 2Y6.94%
EPS Next 3Y7.03%
EPS Next 5Y9.11%
Revenue 1Y (TTM)19.75%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%21.44%
Revenue Next Year14.63%
Revenue Next 2Y9.08%
Revenue Next 3Y7.29%
Revenue Next 5Y6.26%
EBIT growth 1Y9.03%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year16.7%
EBIT Next 3Y7.43%
EBIT Next 5Y7.17%
FCF growth 1Y110.51%
FCF growth 3Y-32.63%
FCF growth 5Y13.77%
OCF growth 1Y86.59%
OCF growth 3Y-22.5%
OCF growth 5Y9.6%