GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
NYSE:GPI - New York Stock Exchange, Inc. - US3989051095 - Common Stock - Currency: USD
Taking everything into account, GPI scores 5 out of 10 in our fundamental rating. GPI was compared to 123 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 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.
In the past year GPI had a positive cash flow from operations.
GPI had positive earnings in each of the past 5 years.
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 4.63%, GPI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
GPI's Return On Equity of 15.09% is fine compared to the rest of the industry. GPI outperforms 73.98% of its industry peers.
The Return On Invested Capital of GPI (8.43%) is better than 71.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GPI is in line with the industry average of 12.08%.
| 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
GPI has a Profit Margin of 2.15%. This is in the better half of the industry: GPI outperforms 60.98% of its industry peers.
In the last couple of years the Profit Margin of GPI has grown nicely.
GPI has a better Operating Margin (4.53%) than 65.04% of its industry peers.
GPI's Operating Margin has improved in the last couple of years.
The Gross Margin of GPI (16.20%) is worse than 84.55% of its industry peers.
In the last couple of years the Gross Margin of GPI has grown nicely.
| 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.
Compared to 1 year ago, GPI has less shares outstanding
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
An Altman-Z score of 3.55 indicates that GPI is not in any danger for bankruptcy at the moment.
GPI's Altman-Z score of 3.55 is fine compared to the rest of the industry. GPI outperforms 78.86% of its industry peers.
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.
With a Debt to FCF ratio value of 8.59, GPI perfoms like the industry average, outperforming 57.72% 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 has a worse Debt to Equity ratio (1.59) than 64.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.03
WACC8.17%
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.
A Quick Ratio of 0.24 indicates that GPI may have some problems paying its short term obligations.
The Quick ratio of GPI (0.24) is worse than 82.11% 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%.
GPI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.17% yearly.
The Revenue has grown by 19.75% in the past year. This is quite good.
The Revenue has been growing by 10.60% on average over the past years. This is quite good.
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 9.56% 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 Y4.94%
EPS Next 2Y6.02%
EPS Next 3Y6.87%
EPS Next 5Y9.56%
Revenue Next Year13.46%
Revenue Next 2Y8.42%
Revenue Next 3Y7.22%
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.
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 reasonably with a Price/Earnings ratio of 10.16.
84.55% 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 27.03.
Based on the Price/Forward Earnings ratio of 9.59, the valuation of GPI can be described as reasonable.
Based on the Price/Forward Earnings ratio, GPI is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
GPI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than GPI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 83.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.11 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)0.35
EPS Next 2Y6.02%
EPS Next 3Y6.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, GPI is not a good candidate for dividend investing.
GPI's Dividend Yield is a higher than the industry average which is at 5.04.
With a Dividend Yield of 0.47, GPI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of GPI is nicely growing with an annual growth rate of 11.18%!
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)11.18%
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.
The dividend of GPI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP5.41%
EPS Next 2Y6.02%
EPS Next 3Y6.87%
423.18
+3.16 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners102.09%
Inst Owner Change0.07%
Ins Owners2.15%
Ins Owner Change-2.83%
Market Cap5.48B
Analysts78.57
Price Target489.02 (15.56%)
Short Float %7.78%
Short Ratio5.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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)0%
PT rev (3m)0.33%
EPS NQ rev (1m)1.35%
EPS NQ rev (3m)-3.48%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.25 | ||
| P/FCF | 9.11 | ||
| P/OCF | 6.32 | ||
| P/B | 1.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.72 |
EPS(TTM)41.66
EY9.84%
EPS(NY)44.14
Fwd EY10.43%
FCF(TTM)46.43
FCFY10.97%
OCF(TTM)66.99
OCFY15.83%
SpS1698.32
BVpS242.35
TBVpS-11.48
PEG (NY)2.06
PEG (5Y)0.35
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 | 3.55 |
F-Score6
WACC8.17%
ROIC/WACC1.03
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 Y4.94%
EPS Next 2Y6.02%
EPS Next 3Y6.87%
EPS Next 5Y9.56%
Revenue 1Y (TTM)19.75%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%21.44%
Revenue Next Year13.46%
Revenue Next 2Y8.42%
Revenue Next 3Y7.22%
Revenue Next 5Y6.26%
EBIT growth 1Y9.03%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year15.25%
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%