GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
NYSE:GPI - US3989051095 - Common Stock
464.78 USD
-12.9 (-2.7%)
464.78 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to GPI. GPI was compared to 123 industry peers in the Specialty Retail industry. GPI has an excellent profitability rating, but there are 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
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.
In the past 5 years GPI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.63%, GPI is doing good in the industry, outperforming 65.85% of the companies in the same industry.
The Return On Equity of GPI (15.09%) is better than 73.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.43%, GPI is in the better half of the industry, outperforming 71.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GPI is in line with the industry average of 12.10%.
| 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
With a decent Profit Margin value of 2.15%, GPI is doing good in the industry, outperforming 60.98% of the companies in the same industry.
GPI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 4.53%, GPI is doing good in the industry, outperforming 65.04% of the companies in the same industry.
GPI's Operating Margin has improved in the last couple of years.
GPI's Gross Margin of 16.20% is on the low side compared to the rest of the industry. GPI is outperformed by 83.74% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GPI is still creating some value.
The number of shares outstanding for GPI has been reduced compared to 1 year ago.
The number of shares outstanding for GPI has been reduced compared to 5 years ago.
Compared to 1 year ago, GPI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.60 indicates that GPI is not in any danger for bankruptcy at the moment.
The Altman-Z score of GPI (3.60) is better than 78.05% of its industry peers.
GPI has a debt to FCF ratio of 8.59. This is a slightly negative value and a sign of low solvency as GPI would need 8.59 years to pay back of all of its debts.
GPI has a Debt to FCF ratio (8.59) which is in line with its industry peers.
GPI has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GPI (1.59) is worse than 67.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 3.6 |
ROIC/WACC0.97
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.05 indicates that GPI should not have too much problems paying its short term obligations.
GPI has a worse Current ratio (1.05) than 69.92% of its industry peers.
GPI has a Quick Ratio of 1.05. 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 worse Quick ratio (0.24) than 83.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
GPI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.86%.
Measured over the past years, GPI shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.17% on average per year.
The Revenue has grown by 19.75% 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)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
GPI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.11% yearly.
The Revenue is expected to grow by 6.26% on average over the next years.
EPS Next Y8.51%
EPS Next 2Y6.94%
EPS Next 3Y7.03%
EPS Next 5Y9.11%
Revenue Next Year14.13%
Revenue Next 2Y8.65%
Revenue Next 3Y7.29%
Revenue Next 5Y6.26%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.16, 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 84.55% of the companies listed in the same industry.
GPI is valuated cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.35, which indicates a very decent valuation of GPI.
82.93% of the companies in the same industry are more expensive than GPI, based on the Price/Forward Earnings ratio.
GPI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
68.29% 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 cheaply inside the industry as 86.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.01 | ||
| EV/EBITDA | 8.24 |
4.3 Compensation for Growth
GPI's 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)1.31
PEG (5Y)0.38
EPS Next 2Y6.94%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
GPI has a yearly dividend return of 0.41%, which is pretty low.
GPI's Dividend Yield is a higher than the industry average which is at 5.41.
Compared to an average S&P500 Dividend Yield of 2.32, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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 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%
464.78
-12.9 (-2.7%)
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-3.73%
Market Cap6.01B
Analysts77.14
Price Target499.22 (7.41%)
Short Float %7.89%
Short Ratio5.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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)2.09%
PT rev (3m)5.29%
EPS NQ rev (1m)1.8%
EPS NQ rev (3m)-1.74%
EPS NY rev (1m)3.4%
EPS NY rev (3m)3.53%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.35 | ||
| P/S | 0.27 | ||
| P/FCF | 10.01 | ||
| P/OCF | 6.94 | ||
| P/B | 1.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.24 |
EPS(TTM)41.66
EY8.96%
EPS(NY)44.91
Fwd EY9.66%
FCF(TTM)46.43
FCFY9.99%
OCF(TTM)66.99
OCFY14.41%
SpS1698.32
BVpS242.35
TBVpS-11.48
PEG (NY)1.31
PEG (5Y)0.38
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 | 3.6 |
F-Score6
WACC8.72%
ROIC/WACC0.97
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 Year14.13%
Revenue Next 2Y8.65%
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 5Y7.19%
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%