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Group 1 Automotive, Inc. (GPI) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Group 1 Automotive, Inc.

GPIMarket cap $2.79BPrice $237.0

Country🇺🇸United States

SectorConsumer

IndustrySpecialty Retail

Sells and services new and used vehicles through hundreds of dealerships across the US, UK, and Europe. Rakes in billions more from parts and repairs than from car sales themselves, cushioning it against auto market swings.

In Bastion Portfolios?

52W Return-45%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+12%7

Revenue Forecast

Rev CAGR (1y)-1%2

Rev CAGR (3y)+3%3

Rev CAGR (5y)+5%4

Earnings Forecast

EPS Growth Y+1+57%9

EPS Growth Y+2+11%7

EPS Growth Y+3+9%6

Quality

Margins

EBIT Margin4%2

Net Income Margin1%2

Free Cash Flow Margin1%3

Debt

Net Debt/EBITDA5.22

Efficiency

ROE9%4

ROA3%4

Earnings Stability44

GEAR+WEAK26

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)610

P/E Ratio (Forward 3y)510

P/BV0.910

EV Multiples

EV/EBITDA Fwd97

EV/EBIT Fwd108

Yield

Free Cash Flow Yield7.9%8

Dividend Yield0.9%3

Momentum

Short term

1 month return-21%1

3 month return-20%2

YTD return-39%1

Mid term

Price vs 52wHigh52%1

1 year return-44%1

Long term

3 year return-4%3

5 year return+28%5

Risk Shield

Price Risk

Beta0.67

Volatility41%4

Free Cash Flow

Free Cash Flow Margin1%3

Free Cash Flow Yield7.9%8

Quality

ROCE13%7

Earnings Stability44

Net Debt/EBITDA5.22

02Growth

Is it actually growing, and how fast?

GPIGroup 1 Automotive

Revenue FY25$22.6B

GROWTH RATING↗

WEAK32 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+12%7

Revenue, next 1Y-1%2

Revenue, next 3Y, CAGR+3%3

Revenue, next 5Y, CAGR+5%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+57%9

EPS growth, FY27E+11%7

EPS growth, FY28E+9%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 12%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Earnings are set to grow faster than sales (EPS about 11%/yr vs revenue 3%/yr), so margins should widen.

WATCH

Revenue grew 12%/yr over the last 3 years; forecasts see it cooling to 3%/yr.

Over five years revenue is set to grow 5%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

Growth is the weak spot here, trailing 68% of companies worldwide.

Revenue is set to grow 3%/yr over the next 3 years, behind most of the market.3/10

BOTTOM LINE

Margin Expander

Growth is a weak point here: a business that is slowing. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK5 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-21%1

3-month return-20%2

YTD return-39%1

MID & LONG-TERM▾SCORE

% of 52-week high52%1

1-year return-44%1

3-year return-4%3

5-year return+28%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (-3.6% over three years and +28% over five), roughly average for the market.

WEAKNESSES

It's down 44% over the past year, now 48% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-21%), over three months (-20%) and so far this year (-39%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Group 1 Automotive, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

GPIGroup 1 Automotive

Revenue FY25$22.6B

GROWTH RATING↗

WEAK32 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+12%7

Revenue, next 1Y-1%2

Revenue, next 3Y, CAGR+3%3

Revenue, next 5Y, CAGR+5%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+57%9

EPS growth, FY27E+11%7

EPS growth, FY28E+9%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 12%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Earnings are set to grow faster than sales (EPS about 11%/yr vs revenue 3%/yr), so margins should widen.

WATCH

Revenue grew 12%/yr over the last 3 years; forecasts see it cooling to 3%/yr.

Over five years revenue is set to grow 5%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

Growth is the weak spot here, trailing 68% of companies worldwide.

Revenue is set to grow 3%/yr over the next 3 years, behind most of the market.3/10

BOTTOM LINE

Margin Expander

Growth is a weak point here: a business that is slowing. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK5 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-21%1

3-month return-20%2

YTD return-39%1

MID & LONG-TERM▾SCORE

% of 52-week high52%1

1-year return-44%1

3-year return-4%3

5-year return+28%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (-3.6% over three years and +28% over five), roughly average for the market.

WEAKNESSES

It's down 44% over the past year, now 48% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-21%), over three months (-20%) and so far this year (-39%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Group 1 Automotive, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community