GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
NYSE:GPI - New York Stock Exchange, Inc. - US3989051095 - Common Stock - Currency: USD
Overall GPI gets a fundamental rating of 5 out of 10. We evaluated GPI against 121 industry peers in the Specialty Retail industry. GPI scores excellent on profitability, but there are concerns on its financial health. 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.
GPI had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 4.96%, GPI is doing good in the industry, outperforming 67.77% of the companies in the same industry.
GPI's Return On Equity of 16.39% is fine compared to the rest of the industry. GPI outperforms 74.38% of its industry peers.
GPI's Return On Invested Capital of 8.22% is fine compared to the rest of the industry. GPI outperforms 70.25% of its industry peers.
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 13.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 16.39% | ||
| ROIC | 8.22% |
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 2.45%. This is in the better half of the industry: GPI outperforms 62.81% of its industry peers.
GPI's Profit Margin has improved in the last couple of years.
GPI has a Operating Margin of 4.63%. This is in the better half of the industry: GPI outperforms 64.46% of its industry peers.
GPI's Operating Margin has improved in the last couple of years.
GPI has a worse Gross Margin (16.26%) than 85.95% of its industry peers.
In the last couple of years the Gross Margin of GPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.63% | ||
| PM (TTM) | 2.45% | ||
| GM | 16.26% |
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.
GPI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GPI has been reduced compared to 5 years ago.
The debt/assets ratio for GPI is higher compared to a year ago.
2.2 Solvency
GPI has an Altman-Z score of 3.40. This indicates that GPI is financially healthy and has little risk of bankruptcy at the moment.
GPI has a Altman-Z score of 3.40. This is in the better half of the industry: GPI outperforms 78.51% of its industry peers.
The Debt to FCF ratio of GPI is 14.46, which is on the high side as it means it would take GPI, 14.46 years of fcf income to pay off all of its debts.
GPI's Debt to FCF ratio of 14.46 is in line compared to the rest of the industry. GPI outperforms 48.76% of its industry peers.
GPI has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.60, GPI is not doing good in the industry: 66.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 14.46 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.96
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.03 indicates that GPI should not have too much problems paying its short term obligations.
GPI has a worse Current ratio (1.03) than 73.55% of its industry peers.
A Quick Ratio of 0.25 indicates that GPI may have some problems paying its short term obligations.
GPI's Quick ratio of 0.25 is on the low side compared to the rest of the industry. GPI is outperformed by 80.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
GPI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.82%.
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 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)-6.82%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%6.72%
Revenue 1Y (TTM)15.13%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%23.15%
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 8.68% yearly.
Based on estimates for the next years, GPI will show a small growth in Revenue. The Revenue will grow by 6.03% on average per year.
EPS Next Y5.22%
EPS Next 2Y7.56%
EPS Next 3Y7.04%
EPS Next 5Y8.68%
Revenue Next Year13.44%
Revenue Next 2Y8.83%
Revenue Next 3Y7.06%
Revenue Next 5Y6.03%
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
With a Price/Earnings ratio of 10.33, the valuation of GPI can be described as very reasonable.
81.82% of the companies in the same industry are more expensive than GPI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GPI to the average of the S&P500 Index (28.10), we can say GPI is valued rather cheaply.
The Price/Forward Earnings ratio is 9.07, which indicates a very decent valuation of GPI.
Based on the Price/Forward Earnings ratio, GPI is valued a bit cheaper than the industry average as 76.86% of the companies are valued more expensively.
GPI is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 9.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than the industry average as 62.81% of the companies are valued more expensively.
71.07% of the companies in the same industry are more expensive than GPI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 7.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GPI does not grow enough to justify the current Price/Earnings ratio.
GPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.98
PEG (5Y)0.35
EPS Next 2Y7.56%
EPS Next 3Y7.04%
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 5.47.
Compared to an average S&P500 Dividend Yield of 2.43, GPI's dividend is way lower than the S&P500 average.
| 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 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
5.17% of the earnings are spent on dividend by GPI. This is a low number and sustainable payout ratio.
GPI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP5.17%
EPS Next 2Y7.56%
EPS Next 3Y7.04%
NYSE:GPI (5/6/2025, 12:35:22 PM)
412.28
+0.47 (+0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.44%
Inst Owner Change-0.57%
Ins Owners2.38%
Ins Owner Change-1.29%
Market Cap5.33B
Analysts83.08
Price Target487.39 (18.22%)
Short Float %8.02%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend1.87
Dividend Growth(5Y)11.18%
DP5.17%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.41%
Min EPS beat(2)-0.7%
Max EPS beat(2)9.53%
EPS beat(4)3
Avg EPS beat(4)3.28%
Min EPS beat(4)-0.7%
Max EPS beat(4)9.53%
EPS beat(8)6
Avg EPS beat(8)2.94%
EPS beat(12)10
Avg EPS beat(12)4.49%
EPS beat(16)14
Avg EPS beat(16)7.34%
Revenue beat(2)2
Avg Revenue beat(2)3.32%
Min Revenue beat(2)2.02%
Max Revenue beat(2)4.62%
Revenue beat(4)3
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)4.62%
Revenue beat(8)7
Avg Revenue beat(8)2.39%
Revenue beat(12)11
Avg Revenue beat(12)2.21%
Revenue beat(16)13
Avg Revenue beat(16)2.15%
PT rev (1m)-5.16%
PT rev (3m)1.3%
EPS NQ rev (1m)1.04%
EPS NQ rev (3m)0.89%
EPS NY rev (1m)-1.35%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 9.07 | ||
| P/S | 0.27 | ||
| P/FCF | 15.62 | ||
| P/OCF | 9.09 | ||
| P/B | 1.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.93 |
EPS(TTM)39.91
EY9.68%
EPS(NY)45.43
Fwd EY11.02%
FCF(TTM)26.39
FCFY6.4%
OCF(TTM)45.34
OCFY11%
SpS1541.71
BVpS230.03
TBVpS-2.45
PEG (NY)1.98
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 16.39% | ||
| ROCE | 14.34% | ||
| ROIC | 8.22% | ||
| ROICexc | 8.26% | ||
| ROICexgc | 12.84% | ||
| OM | 4.63% | ||
| PM (TTM) | 2.45% | ||
| GM | 16.26% | ||
| FCFM | 1.71% |
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-Score4
Asset Turnover2.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 14.46 | ||
| Debt/EBITDA | 4.6 | ||
| Cap/Depr | 216.71% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 4.12 | ||
| Cash Conversion | 56.64% | ||
| Profit Quality | 69.99% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 3.4 |
F-Score4
WACC8.57%
ROIC/WACC0.96
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)-6.82%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%6.72%
EPS Next Y5.22%
EPS Next 2Y7.56%
EPS Next 3Y7.04%
EPS Next 5Y8.68%
Revenue 1Y (TTM)15.13%
Revenue growth 3Y13.92%
Revenue growth 5Y10.6%
Sales Q2Q%23.15%
Revenue Next Year13.44%
Revenue Next 2Y8.83%
Revenue Next 3Y7.06%
Revenue Next 5Y6.03%
EBIT growth 1Y-6.41%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year16.26%
EBIT Next 3Y6.45%
EBIT Next 5Y6.95%
FCF growth 1Y7008.33%
FCF growth 3Y-32.63%
FCF growth 5Y13.77%
OCF growth 1Y208.25%
OCF growth 3Y-22.5%
OCF growth 5Y9.6%