Group 1 Automotive, Inc.

Valuation Analysis

About the Company

Group 1 Automotive, Inc. en bref

Group 1 Automotive, Inc. (GPI) is currently trading at 272,93 € with a market capitalization of 3,2 Md €. The trailing P/E ratio stands at 11.9x, with a forward P/E of 6.59x. The 52-week range spans from 254,94 € to 425,76 €; the current price is 35.9% below the yearly high. Year-over-year revenue growth stands at -1.8%. The net profit margin stands at 1.46%.

💰 Dividende

Group 1 Automotive, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Avis des analystes

12 analystes évaluent Group 1 Automotive, Inc. (GPI) au consensus : Acheter. L'objectif de cours moyen est de 378,78 €, soit un potentiel de +38.78% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 294,66 € à 435,88 €.

Group 1 Automotive, Inc. : la thèse d'investissement en détail

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.

Le scénario haussier

Wall Street consensus sits at Buy with an average price target implying roughly 38.78% 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.

Le scénario baissier

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.

Valorisation en contexte

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.

À surveiller

• The forward P/E of 6.59x is meaningfully below the trailing 11.9x — 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 38.78% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Thèse d'investissement : forces et faiblesses

Aperçu technique

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

Profil de risque

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

Trading Data

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