Group 1 Automotive, Inc.

Valuation Analysis

About the Company

Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars and light trucks through its dealerships and digital platform; and service and insurance contracts. It also engages in the wholesale of used vehicles at third-party auctions; wholesale and retail of vehicle and replacement parts; and arrangement of related vehicle financing. In addition, the company offers automotive maintenance and collision repair services. Group 1 Automotive, Inc. was incorporated in 1995 and is headquartered in Houston, Texas.

Group 1 Automotive, Inc. Stock at a Glance

Group 1 Automotive, Inc. (GPI) is currently trading at $325.33 with a market capitalization of $3.9B. The trailing P/E ratio stands at 12.36x, with a forward P/E of 6.85x. The 52-week range spans from $292.44 to $488.39; the current price is 33.4% below the yearly high. Year-over-year revenue growth stands at -1.8%. The net profit margin stands at 1.46%.

💰 Dividend

Group 1 Automotive, Inc. pays an annual dividend of $2.20 per share, representing a yield of 0.68%. The payout ratio stands at 7.79%.

📊 Analyst Rating

12 analysts rate Group 1 Automotive, Inc. (GPI) on consensus: Buy. The average price target is $434.50, implying +33.56% from the current price. Analyst price targets range from $338.00 to $500.00.

Group 1 Automotive, Inc.: The Investment Case in Detail

Group 1 Automotive, Inc. (GPI) operates in the Consumer Cyclical — specifically Auto & Truck Dealerships — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Wall Street consensus sits at Buy with an average price target implying roughly 33.56% upside from current levels — analyst sentiment is firmly constructive. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue is contracting at -1.8% year-over-year — until that trend reverses, valuation is exposed to further downgrades. With a net margin of just 1.46%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Short interest sits at 11.24% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

With a PEG ratio of 0.39, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 8.7x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 6.85x is meaningfully below the trailing 12.36x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 33.56% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (11.24%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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