GROUP 1 AUTOMOTIVE INC (GPI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:GPI • US3989051095
363.16 USD
-33.25 (-8.39%)
At close: Jan 29, 2026
363.1 USD
-0.06 (-0.02%)
Pre-Market: 1/30/2026, 8:01:54 AM
GPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. GPI has a medium profitability rating, but doesn't score so well on its financial health evaluation. GPI is valued quite cheap, but it does not seem to be growing.
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.
- Of the past 5 years GPI 4 years were 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 61.48% of the companies in the same industry.
- GPI has a better Return On Equity (12.15%) than 68.03% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.28%, GPI is in the better half of the industry, outperforming 69.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for GPI is in line with the industry average of 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.15% | ||
| ROIC | 8.28% |
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 (1.65%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of GPI has grown nicely.
- The Operating Margin of GPI (4.38%) is better than 62.30% of its industry peers.
- In the last couple of years the Operating Margin of GPI has grown nicely.
- With a Gross Margin value of 16.09%, GPI is not doing good in the industry: 82.79% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of GPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 1.65% | ||
| GM | 16.09% |
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 3.47 indicates that GPI is not in any danger for bankruptcy at the moment.
- The Altman-Z score of GPI (3.47) is better than 80.33% of its industry peers.
- The Debt to FCF ratio of GPI is 10.91, which is on the high side as it means it would take GPI, 10.91 years of fcf income to pay off 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 53.28% of the companies in the same industry.
- A Debt/Equity ratio of 1.69 is on the high side and indicates that GPI has dependencies on debt financing.
- GPI has a Debt to Equity ratio of 1.69. This is in the lower half of the industry: GPI underperforms 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 3.47 |
ROIC/WACC0.93
WACC8.9%
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.
- With a Current ratio value of 1.06, GPI is not doing good in the industry: 69.67% of the companies in the same industry are doing better.
- 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.
- GPI has a Quick ratio of 0.25. This is amonst the worse of the industry: GPI underperforms 85.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
- GPI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.54%.
- Measured over the past years, GPI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.62% on average per year.
EPS 1Y (TTM)3.54%
EPS 3Y-3.88%
EPS 5Y17.62%
EPS Q2Q%-15.44%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.61%
3.2 Future
- The Earnings Per Share is expected to grow by 10.73% 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 4.48% yearly.
EPS Next Y9.44%
EPS Next 2Y10.33%
EPS Next 3Y11.45%
EPS Next 5Y10.73%
Revenue Next Year3.3%
Revenue Next 2Y3.33%
Revenue Next 3Y4.77%
Revenue Next 5Y4.48%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 8.93 indicates a reasonable valuation of GPI.
- 91.80% of the companies in the same industry are more expensive than GPI, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.39. GPI is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 8.16, the valuation of GPI can be described as reasonable.
- 93.44% 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 25.72, GPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 8.16 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than the industry average as 73.77% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPI indicates a rather cheap valuation: GPI is cheaper than 86.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.3 | ||
| EV/EBITDA | 7.24 |
4.3 Compensation for Growth
- GPI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- GPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)0.51
EPS Next 2Y10.33%
EPS Next 3Y11.45%
5. Dividend
5.1 Amount
- GPI has a yearly dividend return of 0.55%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.15, GPI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.55, GPI pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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
- 6.93% 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.
DP6.93%
EPS Next 2Y10.33%
EPS Next 3Y11.45%
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 6 / 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 8.93 and the Price/Book (PB) ratio is 1.5.
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%.