GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
NYSE:GPI - New York Stock Exchange, Inc. - US3989051095 - Common Stock - Currency: USD
GPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. GPI has only an average score on both its financial health and profitability. GPI is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years GPI had a positive operating cash flow.
1.2 Ratios
GPI has a Return On Assets of 4.75%. This is in the better half of the industry: GPI outperforms 67.77% of its industry peers.
Looking at the Return On Equity, with a value of 15.69%, GPI is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.42%, GPI is doing good in the industry, outperforming 70.25% 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 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 15.69% | ||
| ROIC | 8.42% |
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 2.24%. This is comparable to the rest of the industry: GPI outperforms 59.50% of its industry peers.
In the last couple of years the Profit Margin of GPI has grown nicely.
GPI has a better Operating Margin (4.55%) than 65.29% of its industry peers.
GPI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.17%, GPI is doing worse than 85.12% of the companies in the same industry.
GPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.55% | ||
| PM (TTM) | 2.24% | ||
| GM | 16.17% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GPI is creating some value.
GPI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GPI has less shares outstanding
Compared to 1 year ago, GPI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.58 indicates that GPI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.58, GPI belongs to the best of the industry, outperforming 80.99% of the companies in the same industry.
GPI has a debt to FCF ratio of 19.31. This is a negative value and a sign of low solvency as GPI would need 19.31 years to pay back of all of its debts.
GPI's Debt to FCF ratio of 19.31 is in line compared to the rest of the industry. GPI outperforms 51.24% of its industry peers.
GPI has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.61, GPI is doing worse than 65.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 19.31 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.95
WACC8.82%
2.3 Liquidity
GPI has a Current Ratio of 1.00. This is a normal value and indicates that GPI is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.00, GPI is not doing good in the industry: 73.55% of the companies in the same industry are doing better.
GPI has a Quick Ratio of 1.00. 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 (0.27) than 79.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
GPI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.75%.
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.
GPI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.13%.
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)-6.75%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%7.03%
Revenue 1Y (TTM)15.13%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%23.15%
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 Y5.39%
EPS Next 2Y6.1%
EPS Next 3Y7.23%
EPS Next 5Y9.56%
Revenue Next Year13.8%
Revenue Next 2Y8.53%
Revenue Next 3Y7.4%
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 11.95, the valuation of GPI can be described as reasonable.
GPI's Price/Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 83.47% of the companies in the same industry.
GPI is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.79 indicates a reasonable valuation of GPI.
GPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 80.17% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GPI to the average of the S&P500 Index (21.76), we can say GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
65.29% 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 a bit cheaper than the industry average as 68.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24 | ||
| EV/EBITDA | 8.33 |
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)2.22
PEG (5Y)0.41
EPS Next 2Y6.1%
EPS Next 3Y7.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, GPI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.86, GPI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
On average, the dividend of GPI grows each year by 11.18%, 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)11.18%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
5.41% of the earnings are spent on dividend by GPI. This is a low number and 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 2Y6.1%
EPS Next 3Y7.23%
477.22
-2.91 (-0.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners102.09%
Inst Owner Change0%
Ins Owners2.15%
Ins Owner Change-0.55%
Market Cap6.17B
Analysts78.57
Price Target489.02 (2.47%)
Short Float %7.86%
Short Ratio6.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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)6.55%
Min EPS beat(2)3.57%
Max EPS beat(2)9.53%
EPS beat(4)3
Avg EPS beat(4)4.02%
Min EPS beat(4)-0.7%
Max EPS beat(4)9.53%
EPS beat(8)6
Avg EPS beat(8)1.96%
EPS beat(12)10
Avg EPS beat(12)3.56%
EPS beat(16)14
Avg EPS beat(16)6.04%
Revenue beat(2)2
Avg Revenue beat(2)2.51%
Min Revenue beat(2)0.41%
Max Revenue beat(2)4.62%
Revenue beat(4)3
Avg Revenue beat(4)1.44%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)4.62%
Revenue beat(8)7
Avg Revenue beat(8)1.77%
Revenue beat(12)11
Avg Revenue beat(12)2.18%
Revenue beat(16)13
Avg Revenue beat(16)1.73%
PT rev (1m)3.13%
PT rev (3m)-4.85%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 10.79 | ||
| P/S | 0.29 | ||
| P/FCF | 24 | ||
| P/OCF | 12.56 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.33 |
EPS(TTM)39.94
EY8.37%
EPS(NY)44.21
Fwd EY9.26%
FCF(TTM)19.88
FCFY4.17%
OCF(TTM)37.99
OCFY7.96%
SpS1621.74
BVpS231.44
TBVpS-2.54
PEG (NY)2.22
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 15.69% | ||
| ROCE | 14.96% | ||
| ROIC | 8.42% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 13.21% | ||
| OM | 4.55% | ||
| PM (TTM) | 2.24% | ||
| GM | 16.17% | ||
| FCFM | 1.23% |
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-Score5
Asset Turnover2.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 19.31 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 197.39% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 3.82 | ||
| Cash Conversion | 45.77% | ||
| Profit Quality | 54.76% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 3.58 |
F-Score5
WACC8.82%
ROIC/WACC0.95
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)-6.75%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%7.03%
EPS Next Y5.39%
EPS Next 2Y6.1%
EPS Next 3Y7.23%
EPS Next 5Y9.56%
Revenue 1Y (TTM)15.13%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%23.15%
Revenue Next Year13.8%
Revenue Next 2Y8.53%
Revenue Next 3Y7.4%
Revenue Next 5Y6.26%
EBIT growth 1Y-0.16%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year15.25%
EBIT Next 3Y7.43%
EBIT Next 5Y7.19%
FCF growth 1Y-25.48%
FCF growth 3Y-32.63%
FCF growth 5Y13.77%
OCF growth 1Y-2.23%
OCF growth 3Y-22.5%
OCF growth 5Y9.6%