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GPI

Group 1 AutomotiveNYSE:GPI Stock Report

Last Price

US$170.83

Market Cap

US$3.0b

7D

-6.9%

1Y

9.3%

Updated

21 Jan, 2022

Data

Company Financials +
GPI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health4/6
Dividends3/6

GPI Stock Overview

Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry.

Group 1 Automotive Competitors

O'Reilly Automotive

NasdaqGS:ORLY

US$42.8b

AutoZone

NYSE:AZO

US$40.1b

Carvana

NYSE:CVNA

US$25.9b

Advance Auto Parts

NYSE:AAP

US$14.0b

Price History & Performance

Summary of all time highs, changes and price drops for Group 1 Automotive
Historical stock prices
Current Share PriceUS$170.83
52 Week HighUS$212.23
52 Week LowUS$130.30
Beta1.7
1 Month Change-9.08%
3 Month Change-14.80%
1 Year Change9.28%
3 Year Change182.93%
5 Year Change115.42%
Change since IPO1,253.11%

Recent News & Updates

Jan 08
Is Now The Time To Put Group 1 Automotive (NYSE:GPI) On Your Watchlist?

Is Now The Time To Put Group 1 Automotive (NYSE:GPI) On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Dec 20

Group 1 Automotive: An Excellent Play On The Automotive Space

Group 1 Automotive has done well to grow its business in recent years, with revenue and cash flows climbing to all-time highs. After a tough 2020, growth resumed this year, with management intent on creating further value for shareholders. Shares of the company are also trading on the cheap, making it a great prospect for long-term investors to consider.

Nov 23
Group 1 Automotive's (NYSE:GPI) Upcoming Dividend Will Be Larger Than Last Year's

Group 1 Automotive's (NYSE:GPI) Upcoming Dividend Will Be Larger Than Last Year's

Group 1 Automotive, Inc.'s ( NYSE:GPI ) dividend will be increasing to US$0.35 on 15th of December. This takes the...

Nov 12
Group 1 Automotive, Inc.'s (NYSE:GPI) Intrinsic Value Is Potentially 33% Above Its Share Price

Group 1 Automotive, Inc.'s (NYSE:GPI) Intrinsic Value Is Potentially 33% Above Its Share Price

Today we will run through one way of estimating the intrinsic value of Group 1 Automotive, Inc. ( NYSE:GPI ) by taking...

Shareholder Returns

GPIUS Specialty RetailUS Market
7D-6.9%-6.8%-6.1%
1Y9.3%-8.4%4.2%

Return vs Industry: GPI exceeded the US Specialty Retail industry which returned -6% over the past year.

Return vs Market: GPI exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is GPI's price volatile compared to industry and market?
GPI volatility
GPI Average Weekly Movement6.4%
Specialty Retail Industry Average Movement7.5%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
199512,337Earl Hesterberghttps://www.group1auto.com

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 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.

Group 1 Automotive Fundamentals Summary

How do Group 1 Automotive's earnings and revenue compare to its market cap?
GPI fundamental statistics
Market CapUS$2.99b
Earnings (TTM)US$545.80m
Revenue (TTM)US$13.21b

5.5x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GPI income statement (TTM)
RevenueUS$13.21b
Cost of RevenueUS$10.92b
Gross ProfitUS$2.29b
ExpensesUS$1.74b
EarningsUS$545.80m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)31.22
Gross Margin17.31%
Net Profit Margin4.13%
Debt/Equity Ratio80.7%

How did GPI perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

4%

Payout Ratio

Valuation

Is Group 1 Automotive undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GPI ($170.83) is trading below our estimate of fair value ($366.11)

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 (5.5x) compared to the US Specialty Retail industry average (7.9x).

PE vs Market: GPI is good value based on its PE Ratio (5.5x) compared to the US market (16.7x).


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 (1.6x) compared to the US Specialty Retail industry average (2.5x).


Future Growth

How is Group 1 Automotive forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-5.6%

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 (-5.6% per year).

Earnings vs Market: GPI's earnings are forecast to decline over the next 3 years (-5.6% per year).

High Growth Earnings: GPI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GPI's revenue (10.1% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: GPI's revenue (10.1% 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 (16.4%).


Past Performance

How has Group 1 Automotive performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPI has high quality earnings.

Growing Profit Margin: GPI's current net profit margins (4.1%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: GPI's earnings have grown significantly by 25.1% per year over the past 5 years.

Accelerating Growth: GPI's earnings growth over the past year (141.4%) exceeds its 5-year average (25.1% per year).

Earnings vs Industry: GPI earnings growth over the past year (141.4%) underperformed the Specialty Retail industry 151.5%.


Return on Equity

High ROE: GPI's Return on Equity (29.5%) is considered high.


Financial Health

How is Group 1 Automotive's financial position?


Financial Position Analysis

Short Term Liabilities: GPI's short term assets ($1.6B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: GPI's short term assets ($1.6B) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: GPI's net debt to equity ratio (65.2%) is considered high.

Reducing Debt: GPI's debt to equity ratio has reduced from 310.5% to 80.7% over the past 5 years.

Debt Coverage: GPI's debt is well covered by operating cash flow (78.2%).

Interest Coverage: GPI's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet


Dividend

What is Group 1 Automotive current dividend yield, its reliability and sustainability?

0.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GPI's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: GPI's dividend (0.82%) 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 (4.3%), 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 (4.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

15.1yrs

Average management tenure


CEO

Earl Hesterberg (67 yo)

16.75yrs

Tenure

US$7,298,579

Compensation

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 ($USD7.30M) is above average for companies of similar size in the US market ($USD5.23M).

Compensation vs Earnings: Earl's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GPI's management team is seasoned and experienced (15.1 years average tenure).


Board Members

Experienced Board: GPI's board of directors are considered experienced (5.2 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Group 1 Automotive, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Group 1 Automotive, Inc.
  • Ticker: GPI
  • Exchange: NYSE
  • Founded: 1995
  • Industry: Automotive Retail
  • Sector: Retail
  • Implied Market Cap: US$2.986b
  • Shares outstanding: 17.48m
  • Website: https://www.group1auto.com

Number of Employees


Location

  • Group 1 Automotive, Inc.
  • 800 Gessner
  • Suite 500
  • Houston
  • Texas
  • 77024
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:38
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.