Group 1 Automotive (GPI) AI Stock Analysis

• Market Cap: $4.94B
• Dividend Yield: 0.5%
• Average Volume (3M): 273.15K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.83
• Revenue Growth: 19.45%
• EPS Growth: -24.27%
• Country: US
• Employees: 20,413
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 10.45
• Shares Outstanding: 12,630,617
• 10 Day Avg. Volume: 280,580
• 30 Day Avg. Volume: 273,153
• PEG Ratio: -0.78
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 16.40
• Enterprise Value/Market Cap: 2.28
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 3.10
• Enterprise Value/Ebitda: 12.12
• 1Y Price Target: $480.00
• Price Target Upside: 22.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 42.5
• Revenue Forecast (FY): $22.67B

• Rating: 66 Neutral
• Price Target: $454.00 ▲(16.15% Upside)

Group 1 Automotive's overall stock score reflects strong financial performance in the U.S. market and record revenues, but is tempered by operational challenges in the U.K. and bearish technical indicators. The company's moderate valuation and strategic restructuring efforts provide some support, but cash flow concerns and increased leverage remain key risks.

Positive Factors

Revenue Growth

Record revenue growth indicates strong market demand and effective sales strategies, enhancing the company's competitive position and financial stability.

Strong U.S. Performance

Strong performance in the U.S. market underscores the company's robust operational capabilities and market leadership, supporting sustainable growth.

Liquidity Position

A strong liquidity position provides financial flexibility for strategic investments and acquisitions, supporting long-term growth and shareholder value.

Negative Factors

Declining Net Profit Margins

Declining profit margins indicate cost pressures and potential inefficiencies, which could impact profitability and require strategic cost management.

Increased Leverage

Higher leverage can strain financial resources and limit flexibility, posing risks to financial stability and increasing vulnerability to economic downturns.

U.K. Economic Challenges

Economic challenges in the U.K. could hinder growth and profitability, necessitating strategic adjustments to mitigate adverse impacts on operations.

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; 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.

How the Company Makes Money

Group 1 Automotive generates revenue through several key streams. The primary source of income comes from the sale of new and used vehicles, where the company earns a profit margin on each vehicle sold. Additionally, the company makes money through financing services offered to customers, including loans and lease agreements, often in partnership with financial institutions. Automotive parts and service departments contribute significantly to revenue as well, providing ongoing maintenance, repairs, and accessories for vehicles sold. Furthermore, Group 1 engages in strategic partnerships with manufacturers and financial services companies, enhancing its offerings and driving sales. Overall, the combination of vehicle sales, financing, and after-sales services forms the core of Group 1 Automotive's revenue model.

Group 1 Automotive Financial Statement Overview

Summary

Group 1 Automotive demonstrates solid revenue growth and a stable gross profit margin, but faces challenges with declining net profit margins and increased leverage. Cash flow generation is a concern, with negative free cash flow growth. The company needs to focus on improving profitability and managing debt levels to enhance financial stability.

Income Statement

Group 1 Automotive shows a steady revenue growth rate of 2.55% in the TTM, indicating resilience in a competitive market. However, the net profit margin has decreased to 1.66% from 2.50% in the previous year, suggesting pressure on profitability. The gross profit margin remains stable at around 16%, but the EBIT and EBITDA margins have declined, reflecting potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.86, indicating higher leverage, which could pose risks if not managed carefully. Return on equity has decreased to 12.39% from 16.75% in the previous year, showing a decline in efficiency. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow growth has turned negative at -17.90%, raising concerns about cash generation. The operating cash flow to net income ratio is relatively low at 0.23, indicating potential cash flow constraints. However, the free cash flow to net income ratio remains healthy at 0.63, suggesting some level of cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.54B	19.93B	17.87B	16.22B	13.48B	10.60B
Gross Profit	3.63B	3.24B	3.02B	2.97B	2.44B	1.73B
EBITDA	928.30M	1.02B	1.06B	1.18B	963.20M	557.70M
Net Income	376.40M	498.20M	601.60M	751.50M	552.10M	286.50M
Balance Sheet
Total Assets	10.39B	9.82B	7.77B	6.72B	5.75B	5.09B
Cash, Cash Equivalents and Short-Term Investments	30.80M	34.40M	57.20M	47.90M	14.90M	69.00M
Total Debt	5.68B	5.24B	3.89B	3.35B	2.85B	2.65B
Total Liabilities	7.34B	6.85B	5.10B	4.48B	3.92B	3.64B
Stockholders Equity	3.05B	2.97B	2.67B	2.24B	1.83B	1.45B
Cash Flow
Free Cash Flow	493.20M	341.20M	4.80M	430.40M	1.12B	702.20M
Operating Cash Flow	777.90M	586.30M	190.20M	585.90M	1.26B	805.40M
Investing Cash Flow	-732.40M	-1.28B	-366.10M	-484.60M	-1.25B	-74.70M
Financing Cash Flow	-75.30M	681.10M	185.20M	-67.30M	-74.00M	-668.10M

Group 1 Automotive Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 390.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPI, the sentiment is Negative. The current price of 390.87 is below the 20-day moving average (MA) of 416.22, below the 50-day MA of 438.66, and below the 200-day MA of 433.17, indicating a bearish trend. The MACD of -14.28 indicates Positive momentum. The RSI at 36.22 is Neutral, neither overbought nor oversold. The STOCH value of 20.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GPI.

Group 1 Automotive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABG	71 Outperform	$4.41B	7.95	15.49%	―	8.07%	60.95%
LAD	69 Neutral	$7.11B	8.48	13.44%	0.74%	8.56%	17.84%
GPI	66 Neutral	$4.94B	13.75	12.27%	0.50%	19.45%	-24.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAH	59 Neutral	$2.04B	16.12	12.51%	1.84%	9.09%	-33.59%
KMX	58 Neutral	$4.53B	9.50	8.42%	―	2.17%	28.59%
AN	55 Neutral	$6.96B	11.41	27.16%	―	6.06%	-1.71%

Group 1 Automotive Corporate Events

Group 1 Automotive Reports Record Revenue Amid Challenges

Group 1 Automotive, Inc., a Fortune 250 automotive retailer, operates 259 dealerships across the U.S. and U.K., offering a wide range of automobile brands and related services. The company reported a record revenue of $5.8 billion for the third quarter of 2025, marking a 10.8% increase from the previous year, driven by strong used vehicle sales and parts and service revenues. Despite these gains, net income from continuing operations saw a significant decline due to non-cash impairment charges in the U.K. Adjusted earnings per share rose to $10.45, reflecting a 5.6% increase. Key highlights include a strategic acquisition of a Mercedes-Benz dealership in Georgia and ongoing restructuring efforts in the U.K. to optimize the portfolio amidst challenging market conditions. Looking ahead, Group 1 Automotive remains focused on leveraging its diversified business model and strategic growth initiatives to navigate market challenges and capitalize on consumer demand.

Group 1 Automotive’s Earnings Call: Mixed Sentiments

Group 1 Automotive’s recent earnings call presented a mixed sentiment, highlighting record-breaking revenues largely driven by robust U.S. operations, while also addressing significant challenges in the U.K. The U.S. market demonstrated strong growth and effective cost management, whereas the U.K. faced economic pressures and strategic restructuring hurdles, including a substantial asset impairment.

Group 1 Automotive Q3 Results Announcement Scheduled

On October 13, 2025, Group 1 Automotive announced it will release its third-quarter financial results on October 28, 2025, before the market opens. The company will host a conference call later that morning to discuss the results, which will be accessible via a live internet simulcast and telephonic replay, indicating a proactive approach in engaging with investors and stakeholders.

The most recent analyst rating on (GPI) stock is a Hold with a $435.00 price target. To see the full list of analyst forecasts on Group 1 Automotive stock, see the GPI Stock Forecast page.

Group 1 Automotive Appoints New HR Chief

On August 11, 2025, Group 1 Automotive appointed Melkeya McDuffie as Senior Vice President and Chief Human Resources Officer, highlighting her extensive HR leadership experience across various industries. The company also announced a third-quarter cash dividend of $0.50 per share, payable on September 16, 2025, and provided an update on its share repurchase activity, reflecting its commitment to shareholder returns.

The most recent analyst rating on (GPI) stock is a Buy with a $495.00 price target. To see the full list of analyst forecasts on Group 1 Automotive stock, see the GPI Stock Forecast page.

Group 1 Automotive Acquires Mercedes-Benz Dealership in Atlanta

On August 4, 2025, Group 1 Automotive announced the acquisition of Mercedes-Benz of Buckhead, a high-volume luxury dealership in Atlanta, Georgia. This acquisition is expected to generate $210 million in annual revenues and expands Group 1’s presence in the Southeastern U.S. to 29 dealerships. The acquisition aligns with Group 1’s strategy of investing in high-performing dealerships and marks a significant expansion of their partnership with Mercedes-Benz, adding to their portfolio of 33 Mercedes-Benz dealerships in the U.S. and the U.K. In 2025, Group 1 has acquired an estimated $640 million in annual revenues, following $3.9 billion in acquired revenues in 2024.

The most recent analyst rating on (GPI) stock is a Buy with a $450.00 price target. To see the full list of analyst forecasts on Group 1 Automotive stock, see the GPI Stock Forecast page.