Group 1 Automotive Inc

Consumer Discretionary
Retail-Auto Dealers and Gas Stations
www.group1auto.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $5.66B
PE 11
Debt $2.91B
Cash $58.70M
EV $8.51B
FCF -$29.20M

Earnings

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Sales & Net Margins

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Earnings	$500.90M
EBIT	$910.10M
ROE	17%
ROA	9%
FCF	-$29.20M
Equity	$2.98B
Growth Stability	100%
PE	11.29
PEG	0.26
PB	1.9
P/FCF	-193.71
P/S	0.3
Price/Cash	0.01
Debt/Equity	0.98
Debt/FCF	-99.59
Net Margins	3%
Gross Margins	16%
Op. Margins	5%
Earnings CAGR	23%
Sales Growth YoY	11%
Sales Growth QoQ	11%
Sales CAGR	5%
FCF CAGR	9%
Equity CAGR	13%
Earnings Stability	0.61
Earnings Growth YoY	-28%
Earnings Growth QoQ	-15%
Earnings CAGR 5Y	43%

Sales CAGR 5Y	14%
FCF CAGR 5Y	-20%
Equity CAGR 5Y	22%
Earnings CAGR 3Y	12%
Sales CAGR 3Y	12%
FCF CAGR 3Y	-53%
Equity CAGR 3Y	19%
Market Cap	$5.66B
Revenue	$18.87B
Dividend Yield	0%
Payout Ratio	5%
Assets	$9.98B
Total Debt	$2.91B
Cash	$58.70M
Shares Outstanding	13.14M
EV	8.51B
Earnings Score	88%
Moat Score	83%
Safety Score	69%
Final Score	80%
Working Capital	1.8M
Current Ratio	1
Gross Profit	$3.09B
Shares Growth 3y	-8%
Equity Growth QoQ	4%
Equity Growth YoY	14%

Assets & ROA

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Stockholders Equity & ROE

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Excluding its Brazil operations about to be sold, Group 1 owns and operates 46 collision centers and 201 automotive dealerships in the U.S. and the U.K., offering 34 brands of automobiles altogether--nearly 150 of the stores are in the U.S. with American locations mostly in metropolitan areas in 17 states in the Northeast, Southeast, Midwest, and in California. Texas alone contributed 40% of new vehicle unit volume in 2021 excluding Brazil and the U.K. about 19%. Texas, Oklahoma, and Massachusetts combined were about 55%. Revenue in 2021 totaled $13.5 billion. The company was founded in 1995 and is based in Houston.

SEC Filings

Direct access to Group 1 Automotive Inc (GPI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Group 1 Automotive Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Group 1 Automotive Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 23%

Stability 61%

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Group 1 Automotive Inc Discounted Cash Flow

Fully customizable DCF calculator online for Group 1 Automotive Inc.

Years

Calculation mode

= -$544M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$29M	-$32M	-$35M	-$38M	-$41M	-$45M	-$49M	-$53M	-$58M	-$63M	-$69M	-$690M
DCF		-$29M	-$29M	-$28M	-$28M	-$28M	-$28M	-$27M	-$27M	-$27M	-$27M	-$266M
Value	-$544M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	09/2020	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	1%	1%	1%	2%	1%	1%	-	3%	4%	5%	3%	3%
ROA	-	6%	8%	7%	7%	7%	-	10%	15%	16%	12%	9%
ROE	-	10%	15%	18%	14%	13%	-	19%	29%	33%	22%	17%

Bad Net Margins (2.74%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	09/2020	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	62.84	5.87	-84.9	11.32	8.38	-	1.94	1.83	4.86	439.06	-99.59
Debt over Equity	1.11	1.42	1.44	1.28	1.33	1.2	-	0.94	1.12	0.94	0.79	0.98
Growth Stability	-	-	-	100%	100%	100%	-	100%	100%	100%	100%	100%

Good Debt/FCF ratio (-99.59)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.98)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	09/2020	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	7%	2%	2%	4%	4%	-	-	24%	20%	10%	14%
Earnings YoY growth	-	1%	56%	46%	-26%	10%	-	-	93%	37%	-20%	43%
Equity YoY growth	-	-6%	1%	21%	-3%	15%	-	-	26%	23%	20%	22%
FCF YoY growth	-	-57%	998%	-107%	-863%	39%	-	-	59%	-61%	-99%	-20%