Group 1 Automotive Stock Analysis, Valuation (NYSE:GPI)

Add to My Stocks
$78.26 $1.24 (1.61%) GPI stock closing price Aug 17, 2018 (Closing)

View the Group 1 Automotive stock analysis video on Amigobulls. Our GPI analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Group 1 Automotive, Inc. Stock Rating 2.9/5

Amigobulls GPI stock analysis uses latest quarter 2018 Q2 financial data like Group 1 Automotive revenue growth, profit margins and cash flows. Group 1 Automotive valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Group 1 Automotive stock rating which is indicative of the company's financial performance.

Should you buy GPI stock?

  • GPI stock is trading at an earnings multiple of 9.1 which is better than the sector average of 21.1.
  • GPI stock is trading at a favorable price to sales multiple of 0.1 as against the Retail-Wholesale sector average multiple of 0.8.
  • Group 1 Automotive has a good Return On Equity (ROE) of 21.2.

Should you sell GPI stock?

  • Long term revenue growth of 7.4 over the past 5 years has been disappointing.
  • Group 1 Automotive's LTM Net margins were poor at 2%.
  • Group 1 Automotive is debt laden and has a high debt/equity ratio of 2.03.

Comments on this video and Group 1 Automotive stock

Amigobulls Group 1 Automotive stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of GPI stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Group 1 Automotive revenue growth and profit or net income are two main metrics which help in identifying whether GPI stock is overvalued or undervalued. Investors could make use of GPI technical analysis to check whether the fundamental story is reflected in the market sentiment.