Group 1 Automotive (GPI)
NYSE:GPI
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Group 1 Automotive
(NYSE:GPI)
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Rating:61Neutral
Price Target:
$376.00
▲(7.45% Upside)
Action:ReiteratedDate:05/01/26
The score is driven primarily by weakening financial performance (margin compression, sharply negative TTM revenue growth, and cash-flow volatility) despite continued profitability and improving leverage. Technicals are moderately supportive with positive near-term momentum, while valuation is neutral (moderate P/E, low yield). The latest earnings call adds some support via actionable cost reductions and aftersales strength, but demand and used-margin pressures remain meaningful.
Positive Factors
Aftersales Strength
Growing aftersales revenue and added technician capacity create recurring, higher-margin cash flow less dependent on new-unit cycles. Improved service throughput and same-store customer-pay gains bolster sustainable profitability and reduce revenue cyclicality over the coming months.
Negative Factors
Margin Compression
Persistent margin erosion to low-single digits reduces earnings sensitivity to revenue growth and weakens return on invested capital. Coupled with swings in cash conversion, this constrains reinvestment capacity and increases vulnerability to another down cycle within months.
Read all positive and negative factors
Positive Factors
Negative Factors
Aftersales Strength
Growing aftersales revenue and added technician capacity create recurring, higher-margin cash flow less dependent on new-unit cycles. Improved service throughput and same-store customer-pay gains bolster sustainable profitability and reduce revenue cyclicality over the coming months.
Read all positive factors
Group 1 Automotive (GPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.20B
Dividend Yield0.49%
Average Volume (3M)164.64K
Price to Earnings (P/E)7.6
Beta (1Y)0.67
Revenue Growth7.17%
EPS Growth-26.51%
CountryUS
Employees20,413
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)26.07
Shares Outstanding11,872,577
10 Day Avg. Volume99,912
30 Day Avg. Volume164,640
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)1.79
Price to Sales (P/S)0.22
P/FCF Ratio11.78
Enterprise Value/Market Cap2.26
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit2.72
Enterprise Value/Ebitda8.79
Forecast
1Y Price Target
$440.00Price Target Upside25.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)41.39
Revenue Forecast (FY)$23.00B
Group 1 Automotive Business Overview & Revenue Model
Company Description
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; a...
How the Company Makes Money
GPI generates revenue through multiple dealership-based streams. (1) New vehicle sales: It sells new vehicles as a franchised dealer for various automotive manufacturers; revenue is recorded as the retail selling price, with gross profit driven by...
Group 1 Automotive Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented multiple operational and financial strengths — solid revenue and adjusted EPS, resilient U.S. new-vehicle GPUs, strong aftersales momentum, successful virtual F&I rollout, U.K. improvement, and disciplined capital deployment including share repurchases and targeted M&A. Offsetting these positives were volume pressure in new and used vehicles, used-margin and sourcing headwinds, weather-related aftersales disruption (~$7M), increased U.K. labor costs (~$3M), and significant SG&A actions (nearly 700 roles cut) to restore leverage. Management emphasized cost discipline and strategic initiatives (AI, rebranding, technician hiring, measured Chinese-OEM entries) to drive improvement. On balance, the highlights — including confirming actionable cost saves, liquidity, and clear operational levers — modestly outweigh the lowlights, indicating a company navigating a challenging market with concrete remediation plans.Positive Updates
Revenue, Gross Profit and Adjusted EPS
Q1 2026 revenue of $5.4 billion, gross profit of $878 million, adjusted net income of $104 million and adjusted diluted EPS of $8.66 from continuing operations.
Negative Updates
Weather-Related Gross Profit Impact
Estimated negative impact of roughly $7 million to Q1 gross profit (largely on aftersales) due to weather-related store closures (some stores closed up to a week); management treated the estimate as conservative.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue, Gross Profit and Adjusted EPS
Q1 2026 revenue of $5.4 billion, gross profit of $878 million, adjusted net income of $104 million and adjusted diluted EPS of $8.66 from continuing operations.
Read all positive updates
Company Guidance
The company gave directional, metric‑heavy guidance focused on cost, operations and capital allocation: management said Q1 carried an estimated $7M weather headwind (about an 80‑bp impact), and that April cost actions (≈700 FTE reductions plus ~$15M of contract/vendor cuts) should remove ~$50M of annual costs (≈$12.5M per quarter) with benefits beginning in Q2—reducing U.S. SG&A from ~70.5% toward ~68.5% (≈200 bps improvement) and helping return leverage to acceptable levels; operational targets include sustaining new‑vehicle GPU >$3,300 (up from $3,260), improving used PRUs (used GPUs were ~‑3% y/y with 26 days of inventory), raising adjusted F&I PRU (+$95 y/y; F&I GPUs ~+4%), and growing aftersales (U.S. same‑store customer‑pay gross ≈+6%, repair orders +2.5%; U.K. parts & service same‑store gross +20%, customer‑pay/warranty revs +≈35% with gross profit up ≈69%); other metrics/initiatives called out were +130 same‑store technicians (techs +3% y/y), virtual F&I in one‑third of U.S. stores doing 20% of deals, 50% of U.S. stores rebranded with completion planned by year‑end, and continued disciplined capital use amid Q1 results of $5.4B revenue, $878M gross profit, $104M adjusted net income, $8.66 adj. EPS, $714.3M liquidity, rent‑adjusted leverage 3.09x, YTD adj. operating cash flow $147M, free cash flow $95M after $53M CapEx, Q1 buybacks of 205,190 shares for ~$72M (≈1.7% outstanding) with ~$306.3M repurchase capacity remaining.Group 1 Automotive Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
53
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.47B | 22.57B | 19.93B | 17.87B | 16.22B | 13.48B |
| Gross Profit | 3.48B | 3.50B | 3.24B | 3.02B | 2.97B | 2.44B |
| EBITDA | 1.08B | 1.07B | 1.02B | 1.06B | 1.18B | 963.20M |
| Net Income | 326.10M | 323.70M | 498.20M | 601.60M | 751.50M | 552.10M |
Balance Sheet | ||||||
| Total Assets | 10.06B | 10.35B | 9.82B | 7.77B | 6.72B | 5.75B |
| Cash, Cash Equivalents and Short-Term Investments | 41.70M | 32.50M | 34.40M | 57.20M | 47.90M | 14.90M |
| Total Debt | 5.61B | 5.87B | 5.24B | 3.89B | 3.35B | 2.85B |
| Total Liabilities | 7.22B | 7.56B | 6.85B | 5.10B | 4.48B | 3.92B |
| Stockholders Equity | 2.84B | 2.79B | 2.97B | 2.67B | 2.24B | 1.83B |
Cash Flow | ||||||
| Free Cash Flow | 288.10M | 424.50M | 341.20M | -121.90M | 430.40M | 1.12B |
| Operating Cash Flow | 579.90M | 694.50M | 586.30M | 63.50M | 585.90M | 1.26B |
| Investing Cash Flow | -448.50M | -671.30M | -1.28B | -366.10M | -484.60M | -1.25B |
| Financing Cash Flow | -163.30M | -31.10M | 681.10M | 311.90M | -67.30M | -74.00M |
Group 1 Automotive Technical Analysis
Positive
349.94
Price Trends
327.13
Positive
362.20
Negative
398.10
Negative
Market Momentum
3.87
Negative
66.43
Neutral
65.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPI, the sentiment is Positive. The current price of 349.94 is above the 20-day moving average (MA) of 330.78, above the 50-day MA of 327.13, and below the 200-day MA of 398.10, indicating a neutral trend. The MACD of 3.87 indicates Negative momentum. The RSI at 66.43 is Neutral, neither overbought nor oversold. The STOCH value of 65.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GPI.
Group 1 Automotive Risk Analysis
Group 1 Automotive disclosed 24 risk factors in its most recent earnings report. Group 1 Automotive reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Group 1 Automotive Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $6.63B | 14.55 | 10.61% | 0.64% | 2.37% | -10.19% | |
64 Neutral | $2.56B | 9.47 | 11.15% | 2.27% | 4.82% | -55.13% | |
63 Neutral | $3.92B | 4.94 | 14.14% | ― | 4.83% | 33.96% | |
63 Neutral | $7.21B | 8.25 | 26.70% | ― | 1.94% | 9.88% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $4.20B | 7.62 | 10.85% | 0.49% | 7.17% | -26.51% | |
57 Neutral | $5.46B | 25.71 | 4.05% | ― | -1.64% | -50.32% |
* Consumer Cyclical Sector Average
GPI
Group 1 Automotive
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-19.45%
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Group 1 Automotive Corporate Events
Business Operations and StrategyFinancial Disclosures
Group 1 Automotive Sets Date for Q1 2026 Results
Neutral
Apr 9, 2026
On April 8, 2026, Group 1 Automotive, Inc. announced that it will release financial results for the first quarter ended March 31, 2026 before the market opens on April 30, 2026. The company’s president and chief executive executive officer, ...
Executive/Board ChangesRegulatory Filings and Compliance
Group 1 Automotive Updates Executive Severance Incentive Agreement
Neutral
Mar 3, 2026
On March 2, 2026, Group 1 Automotive, Inc. amended the incentive agreement of executive Daryl Kenningham, restructuring his severance benefits while keeping all other terms unchanged. The updated terms increase cash severance and extend health cov...
Dividends
Group 1 Automotive Raises 2026 Annual Dividend Payout
Positive
Feb 11, 2026
On February 11, 2026, Group 1 Automotive announced that its board of directors approved an increase in the 2026 annual dividend rate to $2.20 per share, up 10% from the 2025 rate of $2.00. The board also declared a quarterly cash dividend of $0.55...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.