GROUP 1 AUTOMOTIVE INC (GPI) Fundamental Analysis & Valuation
NYSE:GPI • US3989051095
318.84 USD
-5.35 (-1.65%)
At close: Mar 6, 2026
318.84 USD
0 (0%)
After Hours: 3/6/2026, 8:23:06 PM
This GPI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 5 out of 10 to GPI. GPI was compared to 123 industry peers in the Specialty Retail industry. There are concerns on the financial health of GPI while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on GPI.
1. GPI Profitability Analysis
1.1 Basic Checks
- In the past year GPI was profitable.
- GPI had a positive operating cash flow in the past year.
- Each year in the past 5 years GPI has been profitable.
- Of the past 5 years GPI 4 years had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.57%, GPI is doing good in the industry, outperforming 63.41% of the companies in the same industry.
- GPI's Return On Equity of 12.15% is fine compared to the rest of the industry. GPI outperforms 68.29% of its industry peers.
- The Return On Invested Capital of GPI (8.10%) is better than 71.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.15% | ||
| ROIC | 8.1% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- GPI has a Profit Margin (1.65%) which is comparable to the rest of the industry.
- GPI's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 4.38%, GPI is in the better half of the industry, outperforming 64.23% of the companies in the same industry.
- GPI's Operating Margin has declined in the last couple of years.
- The Gross Margin of GPI (16.09%) is worse than 81.30% of its industry peers.
- In the last couple of years the Gross Margin of GPI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 1.65% | ||
| GM | 16.09% |
OM growth 3Y-14.9%
OM growth 5Y-2.77%
PM growth 3Y-31.85%
PM growth 5Y-11.37%
GM growth 3Y-4.25%
GM growth 5Y-0.38%
2. GPI Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GPI is destroying value.
- There is no outstanding debt for GPI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 3.42 indicates that GPI is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.42, GPI is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
- GPI has a debt to FCF ratio of 10.91. This is a negative value and a sign of low solvency as GPI would need 10.91 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 10.91, GPI is in line with its industry, outperforming 54.47% of the companies in the same industry.
- GPI has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of GPI (1.69) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.42 |
ROIC/WACC0.91
WACC8.89%
2.3 Liquidity
- GPI has a Current Ratio of 1.06. This is a normal value and indicates that GPI is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.06, GPI is doing worse than 69.11% of the companies in the same industry.
- GPI has a Quick Ratio of 1.06. This is a bad value and indicates that GPI is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of GPI (0.25) is worse than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.25 |
3. GPI Growth Analysis
3.1 Past
- GPI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.67%.
- GPI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.65% yearly.
- Looking at the last year, GPI shows a quite strong growth in Revenue. The Revenue has grown by 13.23% in the last year.
- The Revenue has been growing by 16.32% on average over the past years. This is quite good.
EPS 1Y (TTM)3.67%
EPS 3Y-3.84%
EPS 5Y17.65%
EPS Q2Q%-14.94%
Revenue 1Y (TTM)13.23%
Revenue growth 3Y11.64%
Revenue growth 5Y16.32%
Sales Q2Q%0.61%
3.2 Future
- The Earnings Per Share is expected to grow by 9.63% 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 2.72% yearly.
EPS Next Y8.16%
EPS Next 2Y8.73%
EPS Next 3Y10.64%
EPS Next 5Y9.63%
Revenue Next Year3.05%
Revenue Next 2Y3.4%
Revenue Next 3Y3.11%
Revenue Next 5Y2.72%
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. GPI Valuation Analysis
4.1 Price/Earnings Ratio
- GPI is valuated cheaply with a Price/Earnings ratio of 7.83.
- GPI's Price/Earnings ratio is rather cheap when compared to the industry. GPI is cheaper than 92.68% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.29, GPI is valued rather cheaply.
- GPI is valuated cheaply with a Price/Forward Earnings ratio of 7.24.
- 94.31% of the companies in the same industry are more expensive than GPI, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than the industry average as 76.42% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, GPI is valued cheaper than 86.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.96
PEG (5Y)0.44
EPS Next 2Y8.73%
EPS Next 3Y10.64%
5. GPI Dividend Analysis
5.1 Amount
- GPI has a yearly dividend return of 0.66%, which is pretty low.
- The stock price of GPI dropped by -21.12% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 2.30, GPI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.66, GPI pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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 6.93% 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.
DP6.93%
EPS Next 2Y8.73%
EPS Next 3Y10.64%
GPI Fundamentals: All Metrics, Ratios and Statistics
318.84
-5.35 (-1.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-22 2026-04-22
Inst Owners101.63%
Inst Owner Change195.2%
Ins Owners2.15%
Ins Owner Change0.46%
Market Cap3.84B
Revenue(TTM)22.57B
Net Income(TTM)371.10M
Analysts77.14
Price Target480.86 (50.82%)
Short Float %8.21%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend1.87
Dividend Growth(5Y)11.18%
DP6.93%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-02 2026-03-02 (0.55)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.96%
Min EPS beat(2)-3.54%
Max EPS beat(2)7.46%
EPS beat(4)3
Avg EPS beat(4)4.25%
Min EPS beat(4)-3.54%
Max EPS beat(4)9.53%
EPS beat(8)5
Avg EPS beat(8)1.34%
EPS beat(12)9
Avg EPS beat(12)2.65%
EPS beat(16)13
Avg EPS beat(16)4.09%
Revenue beat(2)2
Avg Revenue beat(2)0.81%
Min Revenue beat(2)0.43%
Max Revenue beat(2)1.18%
Revenue beat(4)4
Avg Revenue beat(4)1.66%
Min Revenue beat(4)0.41%
Max Revenue beat(4)4.62%
Revenue beat(8)7
Avg Revenue beat(8)1.11%
Revenue beat(12)11
Avg Revenue beat(12)2.03%
Revenue beat(16)14
Avg Revenue beat(16)1.36%
PT rev (1m)0.92%
PT rev (3m)-0.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.3%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-2.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.17 | ||
| P/FCF | 7.79 | ||
| P/OCF | 4.94 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.63 |
EPS(TTM)40.71
EY12.77%
EPS(NY)44.03
Fwd EY13.81%
FCF(TTM)40.96
FCFY12.85%
OCF(TTM)64.6
OCFY20.26%
SpS1871.89
BVpS253.58
TBVpS-16.63
PEG (NY)0.96
PEG (5Y)0.44
Graham Number481.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.15% | ||
| ROCE | 13.98% | ||
| ROIC | 8.1% | ||
| ROICexc | 8.13% | ||
| ROICexgc | 12.78% | ||
| OM | 4.38% | ||
| PM (TTM) | 1.65% | ||
| GM | 16.09% | ||
| FCFM | 2.19% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-14.9%
OM growth 5Y-2.77%
PM growth 3Y-31.85%
PM growth 5Y-11.37%
GM growth 3Y-4.25%
GM growth 5Y-0.38%
F-Score6
Asset Turnover2.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Debt/EBITDA | 4.67 | ||
| Cap/Depr | 235.1% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 3.71 | ||
| Cash Conversion | 70.24% | ||
| Profit Quality | 132.88% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 3.42 |
F-Score6
WACC8.89%
ROIC/WACC0.91
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.67%
EPS 3Y-3.84%
EPS 5Y17.65%
EPS Q2Q%-14.94%
EPS Next Y8.16%
EPS Next 2Y8.73%
EPS Next 3Y10.64%
EPS Next 5Y9.63%
Revenue 1Y (TTM)13.23%
Revenue growth 3Y11.64%
Revenue growth 5Y16.32%
Sales Q2Q%0.61%
Revenue Next Year3.05%
Revenue Next 2Y3.4%
Revenue Next 3Y3.11%
Revenue Next 5Y2.72%
EBIT growth 1Y9.96%
EBIT growth 3Y-4.99%
EBIT growth 5Y13.1%
EBIT Next Year10.78%
EBIT Next 3Y7.47%
EBIT Next 5Y8.27%
FCF growth 1Y1794.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y353.53%
OCF growth 3YN/A
OCF growth 5YN/A
GROUP 1 AUTOMOTIVE INC / GPI FAQ
Can you provide the ChartMill fundamental rating for GROUP 1 AUTOMOTIVE INC?
ChartMill assigns a fundamental rating of 5 / 10 to GPI.
Can you provide the valuation status for GROUP 1 AUTOMOTIVE INC?
ChartMill assigns a valuation rating of 8 / 10 to GROUP 1 AUTOMOTIVE INC (GPI). This can be considered as Undervalued.
What is the profitability of GPI stock?
GROUP 1 AUTOMOTIVE INC (GPI) has a profitability rating of 4 / 10.
What are the PE and PB ratios of GROUP 1 AUTOMOTIVE INC (GPI) stock?
The Price/Earnings (PE) ratio for GROUP 1 AUTOMOTIVE INC (GPI) is 7.83 and the Price/Book (PB) ratio is 1.26.
How sustainable is the dividend of GROUP 1 AUTOMOTIVE INC (GPI) stock?
The dividend rating of GROUP 1 AUTOMOTIVE INC (GPI) is 5 / 10 and the dividend payout ratio is 6.93%.