Group 1 Automotive Inc (GPI) Stock Analysis
Verdict: AVOID
Accelerating earnings misses and contracting margins signal a cyclical peak, making the current 1.96x debt-to-equity ratio a major risk.
Investment score: 38/100
Analysis as of
Is Group 1 Automotive Inc stock worth reviewing? The TradeMates thesis
GPI is facing a fundamental breakdown with four straight earnings misses and high debt. Better value exists elsewhere in the sector.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 40/100 (weight 15%)
- Technical Momentum: 25/100 (weight 15%)
- Earnings Quality: 15/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Group 1 Automotive Inc opportunities and risks
What speaks for GPI
- Fixed Operations Resilience
What speaks against GPI
- High Leverage in Rising Rate Environments
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| GPI | 12.3x | 0.2x | 11.7x | 15.7% | 1.3% | 4.7% |
| LAD | 13.4x | 0.2x | 12.8x | 11.0% | 1.9% | -6.3% |
| KMX | 36.5x | 0.3x | 23.8x | 10.2% | 0.8% | 11.9% |
| AN | 9.9x | 0.3x | 12.5x | 17.6% | 2.7% | 0.2% |
| VVV | 57.3x | 2.6x | 16.7x | 38.5% | 5.0% | 2.0% |
| ABG | 8.7x | 0.2x | 4.0x | 17.1% | 2.8% | 8.6% |
| Peer median | 13.4x | 0.3x | 12.8x | 17.1% | 2.7% | 2.0% |
Frequently asked questions about Group 1 Automotive Inc (GPI)
Is GPI stock a good investment?
The TradeMates model rates Group 1 Automotive Inc as AVOID with an investment score of 38/100. GPI is facing a fundamental breakdown with four straight earnings misses and high debt. Better value exists elsewhere in the sector. This is algorithmic model output, not personal investment advice.
Is GPI stock a buy?
The TradeMates model verdict for GPI is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.