GPI

Group 1 Automotive, Inc.

Fundamental data last updated:October 10, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Auto - Dealerships

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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 17 states in the United States; and 35 towns in the United Kingdom. As of July 11, 2022, the company owned and operated 204 automotive dealerships, 273 franchises, and 47 collision centers that offer 35 brands of automobiles. Group 1 Automotive, Inc. was incorporated in 1995 and is based in Houston, Texas.

 


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VALUATION

P/E

12.01

Market Cap ($M USD)

$3.88B

Forward P/E

4.88

PEG

0.03

PRICE TO SALES

0.17

PRICE TO BOOK

1.38

EV / EBITDA

8.76

5-Year Average P/E

Free Cash Flow Yield

7.16%

DCF Value

$907.32

Graham Number

$380.38

Price to FCF

13.97

EV to FCF

34.00

Earnings Yield

8.32%

FCF Yield

7.16%

DIVIDEND

Yield

0.63%

Annual Payout

$2.05

Payout Ratio

7.85%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$27.18

Next Year EPS Growth Estimate

$66.83

Next Year Revenue Growth Estimate

$25.39B

Return on Equity (ROE)

11.04%

FREE CASH FLOW

Operating Margin

4.26%

Debt-to-Equity

2.10

Piotroski F-Score

6

Altman Z-Score

3.48

Return on Invested Capital (ROIC)

15.04%

Current Ratio

0.95

Quick Ratio

0.21

Net Debt to EBITDA

5.16

Interest Coverage

3.15

Gross Profit margin

15.51%

FCF PER SHARE

$23.18

REVENUE PER SHARE

$1872.77

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Gainseekers Quantitative Analysis

Summary

GPI Group 1 Automotive, Inc. presents a compelling valuation anomaly. Recent pricing indicated it traded significantly below its DCF Value and Graham Number, suggesting a potential mispricing by the market. With a Forward P/E of 5.35 and an Earnings Yield of 7.59%, the stock appears undervalued, especially given its robust Altman Z-score of 3.50, which signals financial stability. The market seems to underestimate its growth prospects, despite a staggering EPS estimate for next year. This disconnect between intrinsic value and market perception could be a lucrative opportunity for savvy investors.

AI Exposure / Tech Reliance

Operating in the Auto - Dealerships industry, GPI is somewhat insulated from immediate AI disruptions. However, the company must adapt to technological advancements in automotive retail and customer engagement. Its resilience will depend on integrating digital tools to enhance the buying experience and streamline operations.

The Bull Case

For value and GARP investors, GPI's appeal lies in its impressive ROIC of 15.04% and a solid Piotroski F-Score of 6, indicating efficient capital allocation and operational health. The FCF Yield of 6.53% underscores its ability to generate cash, while a modest operating margin of 4.26% reflects disciplined cost management. These metrics suggest GPI has pricing power and capital efficiency, making it an attractive buy for those seeking undervalued growth.

The Bear Case

Despite its strengths, GPI faces structural risks. The Debt/Equity ratio of 2.10 raises concerns about leverage, and the Net Debt to EBITDA of 5.16 suggests potential financial strain. Additionally, a Price/Book ratio of 1.51 and Price/Sales of 0.19 could indicate overvaluation relative to tangible assets and revenue. The stock's proximity to its 52-week high further suggests it might be technically overextended, warranting caution.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$442.00

Institutional Ownership %

1-Year Beta

0.87

Insider Buying % (6 Mo)

Distance to 52-Week High

49.61%

Distance to 52-Week Low

10.42%

EARNINGS SURPRISE %

-1.81%

50-DAY SMA

$333.18

200-DAY SMA

$385.36

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.