Group 1 Automotive, Inc.
Group 1 Automotive, Inc. Fundamental Analysis
Group 1 Automotive, Inc. (GPI) shows moderate financial fundamentals with a PE ratio of 13.21, profit margin of 1.45%, and ROE of 11.06%. The company generates $22.2B in annual revenue with strong year-over-year growth of 13.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GPI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGPI demonstrates superior asset utilization.
Valuation Score
ExcellentGPI trades at attractive valuation levels.
Growth Score
ModerateGPI shows steady but slowing expansion.
Financial Health Score
WeakGPI carries high financial risk with limited liquidity.
Profitability Score
WeakGPI struggles to sustain strong margins.
Key Financial Metrics
Is GPI Expensive or Cheap?
P/E Ratio
GPI trades at 13.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GPI's PEG of -0.50 indicates potential undervaluation.
Price to Book
The market values Group 1 Automotive, Inc. at 1.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.43 times EBITDA. This is generally considered low.
How Well Does GPI Make Money?
Net Profit Margin
For every $100 in sales, Group 1 Automotive, Inc. keeps $1.45 as profit after all expenses.
Operating Margin
Core operations generate 4.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.06 in profit for every $100 of shareholder equity.
ROA
Group 1 Automotive, Inc. generates $11.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Group 1 Automotive, Inc. generates limited operating cash flow of $649.23M, signaling weaker underlying cash strength.
Free Cash Flow
Group 1 Automotive, Inc. generates weak or negative free cash flow of $382.10M, restricting financial flexibility.
FCF Per Share
Each share generates $32.18 in free cash annually.
FCF Yield
GPI converts 9.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.35
vs 25 benchmark
How GPI Stacks Against Its Sector Peers
| Metric | GPI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.21 | 24.37 | Better (Cheaper) |
| ROE | 11.06% | 1158.00% | Weak |
| Net Margin | 1.45% | 778.00% | Weak |
| Debt/Equity | 1.11 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.00 | 2.44 | Weak Liquidity |
| ROA | 11.80% | -8281.00% (disorted) | Strong |
GPI outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Group 1 Automotive, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
193.92%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
54.90%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
19.03%
Industry Style: Cyclical, Growth, Discretionary
High Growth