Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry.
Very undervalued with proven 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's share price has been volatile over the past 3 months.
7 Day Return
US Specialty Retail
1 Year Return
US Specialty Retail
Return vs Industry: GPI underperformed the US Specialty Retail industry which returned -29.6% over the past year.
Return vs Market: GPI underperformed the US Market which returned -13.6% over the past year.
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
2 weeks ago | Simply Wall StIntroducing Group 1 Automotive (NYSE:GPI), The Stock That Slid 53% In The Last Five Years
4 weeks ago | Simply Wall StDo You Know What Group 1 Automotive, Inc.'s (NYSE:GPI) P/E Ratio Means?
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 ($37.98) is trading below our estimate of fair value ($68.65)
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 (4.1x) compared to the Specialty Retail industry average (7.2x).
PE vs Market: GPI is good value based on its PE Ratio (4.1x) compared to the US market (12.9x).
Price to Earnings Growth Ratio
PEG Ratio: GPI is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: GPI is good value based on its PB Ratio (0.5x) compared to the US Specialty Retail industry average (0.8x).
How is Group 1 Automotive forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GPI's forecast earnings growth (12.2% per year) is above the savings rate (1.7%).
Earnings vs Market: GPI's earnings (12.2% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: GPI's earnings are forecast to grow, but not significantly.
Revenue vs Market: GPI's revenue is expected to decline over the next 3 years (-0.1% per year).
High Growth Revenue: GPI's revenue is forecast to decline over the next 3 years (-0.1% 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 (11.1%).
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 (1.4%) are higher than last year (1.3%).
Past Earnings Growth Analysis
Earnings Trend: GPI's earnings have grown by 13.6% per year over the past 5 years.
Accelerating Growth: GPI's earnings growth over the past year (10%) is below its 5-year average (13.6% per year).
Earnings vs Industry: GPI earnings growth over the past year (10%) exceeded the Specialty Retail industry 6.9%.
Return on Equity
High ROE: GPI's Return on Equity (13.9%) is considered low.
How is Group 1 Automotive's financial position?
Financial Position Analysis
Short Term Liabilities: GPI's short term assets ($2.5B) exceed its short term liabilities ($2.4B).
Long Term Liabilities: GPI's short term assets ($2.5B) exceed its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: GPI's debt to equity ratio (240.5%) is considered high.
Reducing Debt: GPI's debt to equity ratio has reduced from 255.2% to 240.5% over the past 5 years.
Debt Coverage: GPI's debt is not well covered by operating cash flow (12.3%).
Interest Coverage: GPI's interest payments on its debt are not well covered by EBIT (3x coverage).
Inventory Level: GPI has a high level of physical assets or inventory.
Debt Coverage by Assets: GPI's debt is not covered by short term assets (assets are 0.8x debt).
What is Group 1 Automotive's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GPI's dividend (3.16%) is higher than the bottom 25% of dividend payers in the US market (2%).
High Dividend: GPI's dividend (3.16%) is low compared to the top 25% of dividend payers in the US market (5.56%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, GPI has been paying a dividend for less than 10 years.
Growing Dividend: GPI's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (12.1%), GPI's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GPI's dividends in 3 years are forecast to be thoroughly covered by earnings (11.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Earl Hesterberg (65yo)
Mr. Earl J. Hesterberg, Jr., has been the President and Chief Executive Officer of Group 1 Automotive Inc. since April 9, 2005. Mr. Hesterberg served as a Group Vice President of North America Marketing, S ...
CEO Compensation Analysis
Compensation vs Market: Earl's total compensation ($USD6.90M) is above average for companies of similar size in the US market ($USD3.20M).
Compensation vs Earnings: Earl's compensation has increased by more than 20% in the past year.
|Senior VP & CFO||14.33yrs||US$2.58m||0.53% $3.3m|
|Senior Vice President of Manufacturer Relations||8.25yrs||US$1.78m||0.25% $1.6m|
|Senior Vice President of Human Resources||4.17yrs||US$2.14m||0.20% $1.2m|
|President of US & Brazilian Operations||2.92yrs||US$2.60m||0.35% $2.2m|
|Manager of Investor Relations||no data||no data||no data|
|Senior VP & General Counsel||13.33yrs||US$1.30m||0.24% $1.5m|
|Chief Financial Officer of Northeast Region||14.17yrs||no data||no data|
|Chief Financial Officer of Southeast Region||14.17yrs||no data||no data|
|Chief Financial Officer of South Central Region||14.17yrs||no data||no data|
Experienced Management: GPI's management team is seasoned and experienced (14.2 years average tenure).
|Regional Vice President of Brazil & Director||7.17yrs||no data||1.2% $7.6m|
|Independent Director||18.92yrs||US$267.60k||0.29% $1.8m|
|Independent Director||3.42yrs||US$254.10k||0.061% $387.8k|
|Independent Director||20.42yrs||US$412.26k||0.32% $2.0m|
|Non-Executive Chairman||2.92yrs||US$496.83k||0.27% $1.7m|
|Independent Director||3.17yrs||US$269.76k||0.047% $297.2k|
|Director||0.67yr||no data||0.016% $103.9k|
|Independent Director||5.67yrs||US$252.61k||0.067% $423.3k|
|Independent Director||1.58yrs||US$81.50k||0.025% $155.9k|
Experienced Board: GPI's board of directors are considered experienced (4.5 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$631.364m
- Shares outstanding: 17.70m
- Website: https://www.group1auto.com
Number of Employees
- Group 1 Automotive, Inc.
- 800 Gessner
- Suite 500
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|GPI||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Oct 1997|
|GAV||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 1997|
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 insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. It operates primarily in the metropolitan areas in 15 states in the United States; 33 towns in the United Kingdom; and 3 states in Brazil. As of February 5, 2020, the company owned and operated 186 automotive dealerships, 242 franchises, and 49 collision centers that offer 31 brands of automobiles. Group 1 Automotive, Inc. was founded in 1995 and is headquartered in Houston, Texas.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/04 00:26|
|End of Day Share Price||2020/04/03 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.