GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA - NYSE:GPI - US3989051095 - Common Stock
439.94 USD
+16.05 (+3.79%)
472.35 USD
+32.41 (+7.37%)
GPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. While GPI is still in line with the averages on profitability rating, there are concerns on its financial health. GPI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
GPI had positive earnings in each of the past 5 years.
Each year in the past 5 years GPI had a positive operating cash flow.
1.2 Ratios
GPI's Return On Assets of 4.63% is fine compared to the rest of the industry. GPI outperforms 65.83% of its industry peers.
GPI has a better Return On Equity (15.09%) than 74.17% of its industry peers.
GPI has a better Return On Invested Capital (8.43%) than 70.83% 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 12.17%.
| 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
Looking at the Profit Margin, with a value of 2.15%, GPI is in line with its industry, outperforming 60.00% of the companies in the same industry.
GPI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.53%, GPI is in the better half of the industry, outperforming 64.17% of the companies in the same industry.
In the last couple of years the Operating Margin of GPI has grown nicely.
GPI's Gross Margin of 16.20% is on the low side compared to the rest of the industry. GPI is outperformed by 85.00% 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 3.55 indicates that GPI is not in any danger for bankruptcy at the moment.
GPI has a better Altman-Z score (3.55) than 80.00% 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.
GPI's Debt to FCF ratio of 8.59 is in line compared to the rest of the industry. GPI outperforms 57.50% of its industry peers.
A Debt/Equity ratio of 1.59 is on the high side and indicates that GPI has dependencies on debt financing.
GPI has a Debt to Equity ratio of 1.59. This is in the lower half of the industry: GPI underperforms 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 3.55 |
ROIC/WACC0.96
WACC8.8%
2.3 Liquidity
GPI has a Current Ratio of 1.05. This is a normal value and indicates that GPI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GPI (1.05) is worse than 70.83% 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 86.67% 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.
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.
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
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.
GPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.26% yearly.
EPS Next Y9.67%
EPS Next 2Y7.67%
EPS Next 3Y7.03%
EPS Next 5Y9.11%
Revenue Next Year14.77%
Revenue Next 2Y9.14%
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
The Price/Earnings ratio is 10.56, which indicates a very decent valuation of GPI.
86.67% 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 (27.50), we can say GPI is valued rather cheaply.
A Price/Forward Earnings ratio of 9.66 indicates a reasonable valuation of GPI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. GPI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
GPI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPI is cheaper than 70.00% of the companies in the same industry.
GPI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GPI is cheaper than 88.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.48 | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
GPI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.09
PEG (5Y)0.36
EPS Next 2Y7.67%
EPS Next 3Y7.03%
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 5.63.
Compared to an average S&P500 Dividend Yield of 2.44, GPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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
5.41% 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.
DP5.41%
EPS Next 2Y7.67%
EPS Next 3Y7.03%
439.94
+16.05 (+3.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.2%
Inst Owner Change-0.36%
Ins Owners2.1%
Ins Owner Change-1.28%
Market Cap5.69B
Analysts78.46
Price Target510.85 (16.12%)
Short Float %7.82%
Short Ratio5.72
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)2.33%
PT rev (3m)4.46%
EPS NQ rev (1m)-0.91%
EPS NQ rev (3m)4.25%
EPS NY rev (1m)1.07%
EPS NY rev (3m)4.51%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 9.66 | ||
| P/S | 0.26 | ||
| P/FCF | 9.48 | ||
| P/OCF | 6.57 | ||
| P/B | 1.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.77 |
EPS(TTM)41.66
EY9.47%
EPS(NY)45.53
Fwd EY10.35%
FCF(TTM)46.43
FCFY10.55%
OCF(TTM)66.99
OCFY15.23%
SpS1698.32
BVpS242.35
TBVpS-11.48
PEG (NY)1.09
PEG (5Y)0.36
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
WACC8.8%
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)1.86%
EPS 3Y3.87%
EPS 5Y29.17%
EPS Q2Q%17.55%
EPS Next Y9.67%
EPS Next 2Y7.67%
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 Year14.77%
Revenue Next 2Y9.14%
Revenue Next 3Y7.29%
Revenue Next 5Y6.26%
EBIT growth 1Y9.03%
EBIT growth 3Y0.92%
EBIT growth 5Y19.07%
EBIT Next Year17.6%
EBIT Next 3Y8.17%
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%