Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry. More Details
Undervalued with solid track record.
Share Price & News
How has Group 1 Automotive's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GPI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: GPI's weekly volatility (6%) has been stable over the past year.
7 Day Return
US Specialty Retail
1 Year Return
US Specialty Retail
Return vs Industry: GPI exceeded the US Specialty Retail industry which returned 63.1% over the past year.
Return vs Market: GPI exceeded the US Market which returned 35.9% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Group 1 Automotive's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StThese 4 Measures Indicate That Group 1 Automotive (NYSE:GPI) Is Using Debt Reasonably Well
3 weeks ago | Simply Wall StReturn Trends At Group 1 Automotive (NYSE:GPI) Aren't Appealing
1 month ago | Simply Wall StHave Insiders Sold Group 1 Automotive, Inc. (NYSE:GPI) Shares Recently?
Is Group 1 Automotive undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GPI ($173.74) is trading below our estimate of fair value ($217.45)
Significantly Below Fair Value: GPI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GPI is good value based on its PE Ratio (6.1x) compared to the US Specialty Retail industry average (13.6x).
PE vs Market: GPI is good value based on its PE Ratio (6.1x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: GPI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: GPI is good value based on its PB Ratio (1.9x) compared to the US Specialty Retail industry average (3.2x).
How is Group 1 Automotive forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GPI's earnings are forecast to decline over the next 3 years (-11% per year).
Earnings vs Market: GPI's earnings are forecast to decline over the next 3 years (-11% per year).
High Growth Earnings: GPI's earnings are forecast to decline over the next 3 years.
Revenue vs Market: GPI's revenue (5% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: GPI's revenue (5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GPI's Return on Equity is forecast to be low in 3 years time (14.9%).
How has Group 1 Automotive performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GPI has high quality earnings.
Growing Profit Margin: GPI's current net profit margins (4%) are higher than last year (1.3%).
Past Earnings Growth Analysis
Earnings Trend: GPI's earnings have grown significantly by 21.5% per year over the past 5 years.
Accelerating Growth: GPI's earnings growth over the past year (261.6%) exceeds its 5-year average (21.5% per year).
Earnings vs Industry: GPI earnings growth over the past year (261.6%) exceeded the Specialty Retail industry 157.5%.
Return on Equity
High ROE: Whilst GPI's Return on Equity (32.94%) is high, this metric is skewed due to their high level of debt.
How is Group 1 Automotive's financial position?
Financial Position Analysis
Short Term Liabilities: GPI's short term assets ($1.9B) exceed its short term liabilities ($1.7B).
Long Term Liabilities: GPI's short term assets ($1.9B) exceed its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: GPI's debt to equity ratio (138.8%) is considered high.
Reducing Debt: GPI's debt to equity ratio has reduced from 335.9% to 138.8% over the past 5 years.
Debt Coverage: GPI's debt is well covered by operating cash flow (45.7%).
Interest Coverage: GPI's interest payments on its debt are well covered by EBIT (8.7x coverage).
What is Group 1 Automotive current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GPI's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: GPI's dividend (0.76%) is low compared to the top 25% of dividend payers in the US market (3.55%).
Stability and Growth of Payments
Stable Dividend: GPI's dividend payments have been volatile in the past 10 years.
Growing Dividend: GPI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (2.1%), GPI's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GPI's dividends in 3 years are forecast to be thoroughly covered by earnings (5.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Earl Hesterberg (67 yo)
Mr. Earl J. Hesterberg, Jr., has been the President and Chief Executive Officer of Group 1 Automotive Inc. since April 9, 2005. Mr. Hesterberg served as a Group Vice President of North America Marketing, S...
CEO Compensation Analysis
Compensation vs Market: Earl's total compensation ($USD7.30M) is above average for companies of similar size in the US market ($USD5.32M).
Compensation vs Earnings: Earl's compensation has been consistent with company performance over the past year.
Experienced Management: GPI's management team is seasoned and experienced (14.6 years average tenure).
Experienced Board: GPI's board of directors are considered experienced (4.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GPI insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Group 1 Automotive, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Group 1 Automotive, Inc.
- Ticker: GPI
- Exchange: NYSE
- Founded: 1995
- Industry: Automotive Retail
- Sector: Retail
- Market Cap: US$3.048b
- Shares outstanding: 17.54m
- Website: https://www.group1auto.com
Number of Employees
- Group 1 Automotive, Inc.
- 800 Gessner
- Suite 500
- United States
Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contra...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/01 22:11|
|End of Day Share Price||2021/07/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.