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Group 1 Automotive (GPI) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Consumer Cyclical•Auto & Truck Dealerships
C
AverageMetricSide Score: 44/100
ProfitabilityProfit11/30
GrowthGrowth9/25
Balance SheetBalance8/25
Cash QualityCash16/20
Price & Volume
Market Cap $3.51B

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.

Moat Signals

Competitive analysis based on 56 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~3.8% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

ROE averages 15.0% but has fluctuated — the competitive advantage may be cyclical or emerging.

Risk Signals

Data-driven red flags and warnings across 56 quarters

Some Concerns

Margin Pressure

Red Flag

Operating margins dropped 23.3% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Healthy

FCF covers net income by 1.5x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

D/E ratio is 1.0 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Shares decreased 10.4% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$22.47B
7.2%
Q. Revenue
$5.41B
TTM EBITDA
$865.60M
15.1%
TTM Op. Income
$742.70M
17.5%
Q. Op. Income
$242.60M
TTM Net Income
$327.30M
31.6%
Q. Net Income
$130.20M
EPS
$10.87
Shares Out.
$11.86M
9.2%
$22.47B in TTM revenue grew 7.2% YoY, reaching $5.41B last quarter. TTM EBITDA of $865.60M and TTM operating income of $742.70M shows growth is flowing through. Net income of $327.30M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
16.2%
0.2%
EBITDA Margin
5.1%
Op. Margin
4.5%
5.6%
Net Margin
2.4%
3.5%
Op. margin of 4.5% is up 0.2% YoY — cost efficiency is improving. Net margin at 2.4% and gross margin of 16.2% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
10.7x
P/S Ratio
0.2x
P/B Ratio
1.2x
At 10.7x P/E, the stock trades below market averages — potentially undervalued. P/S of 0.2x and P/B of 1.2x provide additional context. Below-market P/E with growing revenue suggests a potential buying opportunity — the stock may be undervalued relative to its fundamentals.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$10.06B
Cash
$41.70M
Long-Term Debt
$2.85B
Book Value
$2.84B
D/E Ratio
1.0
Debt/EBITDA
10.4
With $10.06B in assets and $2.85B in long-term debt, the D/E of 1.0and book value of $2.84B — reflects moderate leverage — debt is manageable but worth monitoring.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$92.40M
TTM Free Cash Flow
$326.40M
27.0%
FCF Margin
1.5%
FCF / Net Income
1.0
TTM FCF of $326.40M on $92.40M in operating cash flow. The FCF / Net Income ratio of 1.0x means earnings are well backed by actual cash — high-quality earnings.

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Cash Generation

Strong Moat

Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.

Demand Durability

Strong Moat

TTM revenue has grown consistently (6 of 7 quarters up), with ~22.5% growth over the period. Strong demand durability.