NYSE:GPI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with questionable track record.


Similar Companies

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.


Market Performance


7 Day Return

2.5%

GPI

0.1%

US Specialty Retail

0.2%

US Market


1 Year Return

80.4%

GPI

9.7%

US Specialty Retail

12.2%

US Market

Return vs Industry: GPI exceeded the US Specialty Retail industry which returned 9.7% over the past year.

Return vs Market: GPI exceeded the US Market which returned 12.2% over the past year.


Shareholder returns

GPIIndustryMarket
7 Day2.5%0.1%0.2%
30 Day13.9%3.3%3.5%
90 Day30.7%13.8%6.3%
1 Year83.3%80.4%11.5%9.7%14.7%12.2%
3 Year54.8%48.1%38.6%31.4%47.8%38.3%
5 Year24.5%16.4%49.9%37.0%62.1%44.1%

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

Valuation

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

33.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GPI ($101.85) is trading below our estimate of fair value ($152)

Significantly Below Fair Value: GPI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GPI is good value based on its PE Ratio (12.1x) compared to the Specialty Retail industry average (16.3x).

PE vs Market: GPI is good value based on its PE Ratio (12.1x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: GPI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: GPI is overvalued based on its PB Ratio (1.5x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

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

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPI's forecast earnings growth (10.7% per year) is above the savings rate (2.7%).

Earnings vs Market: GPI's earnings (10.7% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: GPI's earnings are forecast to grow, but not significantly.

Revenue vs Market: GPI's revenue (1.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GPI's revenue (1.5% 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 (15%).


Next Steps

Past Performance

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

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPI has high quality earnings.

Growing Profit Margin: GPI's current net profit margins (1.3%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: GPI's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: GPI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GPI had negative earnings growth (-34.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (5.6%).


Return on Equity

High ROE: GPI's Return on Equity (13.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Group 1 Automotive's financial position?


Financial Position Analysis

Short Term Liabilities: GPI's short term assets ($2.4B) do not cover its short term liabilities ($2.4B)

Long Term Liabilities: GPI's short term assets (2.4B) exceeds its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: GPI's debt to equity ratio (247.2%) is considered high

Reducing Debt: GPI's debt to equity ratio has increased from 234.8% to 247.2% over the past 5 years.

Debt Coverage: GPI's debt is not well covered by operating cash flow (7.6%).

Interest Coverage: GPI's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

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).


Next Steps

Dividend

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

1.10%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.6%industryaverage1.9%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: GPI's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: GPI's dividend (1.1%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 (3.1%), 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 (2.1% payout ratio).


Next Steps

Management

What is the CEO of Group 1 Automotive's salary, the management and board of directors tenure and is there insider trading?

13.8yrs

Average management tenure


CEO

Earl Hesterberg (65yo)

14.6yrs

Tenure

US$6,903,654

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 ($USD6.90M) is above average for companies of similar size in the US market ($USD3.95M).

Compensation vs Earnings: Earl's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

13.8yrs

Average Tenure

59.5yo

Average Age

Experienced Management: GPI's management team is seasoned and experienced (13.8 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: GPI's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: GPI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$301,93504 Nov 19
Frank Grese
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares2,940
Max PriceUS$102.70
SellUS$1,020,99831 Oct 19
Earl Hesterberg
EntityIndividual
Role
Chief Executive Officer
President
Shares9,998
Max PriceUS$102.24
SellUS$2,368,65530 Oct 19
John Rickel
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares22,740
Max PriceUS$104.29
SellUS$1,034,72030 Oct 19
Max Watson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$103.47
SellUS$1,520,75830 Oct 19
Darryl Burman
EntityIndividual
Role
Chief Legal Officer
Senior VP & General Counsel
Shares14,650
Max PriceUS$103.81
SellUS$824,14726 Sep 19
John Adams
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,308
Max PriceUS$88.75
SellUS$882,22024 Sep 19
John Rickel
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares10,000
Max PriceUS$88.22
SellUS$880,23617 Sep 19
Darryl Burman
EntityIndividual
Role
Chief Legal Officer
Senior VP & General Counsel
Shares10,051
Max PriceUS$87.58
SellUS$887,40029 Jul 19
Peter DeLongchamps
EntityIndividual
Role
Head of Corporate Communications
Senior Vice President of Manufacturer Relations
Shares10,200
Max PriceUS$87.00
SellUS$783,40529 Jul 19
Daryl Kenningham
EntityIndividual
Role
Senior Key Executive
President of US & Brazilian Operations
Shares9,000
Max PriceUS$87.05
SellUS$392,25024 Jun 19
Frank Grese
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares5,000
Max PriceUS$78.45
SellUS$194,41001 May 19
Michael Jones
EntityIndividual
Shares2,500
Max PriceUS$77.76

Ownership Breakdown

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


Management Team

  • Earl Hesterberg (65yo)

    President

    • Tenure: 14.6yrs
    • Compensation: US$6.90m
  • Pete DeLongchamps (58yo)

    Senior Vice President of Manufacturer Relations

    • Tenure: 7.8yrs
    • Compensation: US$1.78m
  • Darryl Burman (61yo)

    Senior VP & General Counsel

    • Tenure: 12.9yrs
    • Compensation: US$1.30m
  • John Rickel (57yo)

    Senior VP & CFO

    • Tenure: 13.9yrs
    • Compensation: US$2.58m
  • Matthew McGovern

    Chief Financial Officer of Northeast Region

    • Tenure: 13.8yrs
  • Robert Kennedy

    Chief Financial Officer of Southeast Region

    • Tenure: 13.8yrs
  • Paul Reinhart

    Chief Financial Officer of South Central Region

    • Tenure: 13.8yrs
  • Frank Grese (67yo)

    Senior Vice President of Human Resources

    • Tenure: 3.8yrs
    • Compensation: US$2.14m
  • Daryl Kenningham (55yo)

    President of US & Brazilian Operations

    • Tenure: 2.5yrs
    • Compensation: US$2.60m
  • Sheila Roth

    Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Max Watson (73yo)

    Independent Director

    • Tenure: 18.5yrs
    • Compensation: US$267.60k
  • Earl Hesterberg (65yo)

    President

    • Tenure: 14.6yrs
    • Compensation: US$6.90m
  • Charlie Szews (62yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$254.10k
  • John Adams (74yo)

    Independent Director

    • Tenure: 20yrs
    • Compensation: US$412.26k
  • Stephen Quinn (63yo)

    Non-Executive Chairman

    • Tenure: 2.5yrs
    • Compensation: US$496.83k
  • Carin Barth (56yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$269.76k
  • Steven Stanbrook (62yo)

    Director

    • Tenure: 0.3yrs
  • Lincoln da Cunha Pereira Filho (59yo)

    Regional Vice President of Brazil & Director

    • Tenure: 6.8yrs
  • Anne Taylor (63yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$81.50k
  • MaryAnn Wright (57yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$252.61k

Company Information

Group 1 Automotive, Inc.'s company bio, 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
  • Market Cap: US$1.773b
  • Shares outstanding: 17.91m
  • Website: https://www.group1auto.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPINYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1997
GAVDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1997

Biography

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; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 23:37
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.