Group 1 Automotive, Inc.
- Open
- 291.17
- Day high
- 293.99
- Day low
- 288.79
- Prev close
- 291.17
- Volume
- 42K
- Mkt cap
- $3.5B
- P/E (TTM)
- 11.1
- EPS (TTM)
- $26.07
- P/B
- 1.2
- P/S
- 0.2
- Yield
- 0.72%
- Per share
- $2.10
Group 1 Automotive, Inc. (GPI) is a Consumer Cyclical company listed on NYSE. The stock is down 36% over the past year. Drillr has 2 published research articles covering GPI.
Group 1 Automotive, Inc. (GPI) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 4 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
GPI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $8.82 | $8.66 | -1.8% | $5.4B | -0.3% |
| Jan 29, 2026 | $9.36 | $8.49 | -9.3% | $5.6B | -1.8% |
| Oct 28, 2025 | $10.64 | $10.45 | -1.8% | $5.8B | -4.4% |
| Jul 24, 2025 | $10.31 | $11.52 | +11.7% | $5.7B | +0.6% |
| Apr 24, 2025 | $9.72 | $10.17 | +4.6% | $5.5B | +1.3% |
| Jan 29, 2025 | $8.77 | $10.02 | +14.3% | $5.5B | +6.3% |
| Jul 24, 2024 | $9.36 | $9.80 | +4.7% | $4.7B | -0.3% |
| Jan 31, 2024 | $10.44 | $9.50 | -9.0% | $4.5B | +1.5% |
| Oct 25, 2023 | $11.48 | $12.07 | +5.1% | $4.7B | +4.4% |
| Jul 26, 2023 | $11.08 | $11.73 | +5.9% | $4.6B | +4.5% |
| Jan 25, 2023 | $10.66 | $10.86 | +1.9% | $4.1B | +3.9% |
| Oct 26, 2022 | $11.30 | $12.00 | +6.2% | $4.2B | +3.2% |
GPI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 21, 2026 | MCHENRY DANIEL JAMESofficer: SVP & CFO | Grant | 809 | — |
| Feb 20, 2026 | Kenningham Daryldirector, officer: President & CEO | Tax | 804 | $331.59 |
| Feb 20, 2026 | MCHENRY DANIEL JAMESofficer: SVP & CFO | Tax | 201 | $331.59 |
| Feb 17, 2026 | Hobson Gillian A.officer: SVP, Chief Legal Officer & Sec | Tax | 126 | $333.15 |
| Feb 17, 2026 | MCHENRY DANIEL JAMESofficer: SVP & CFO | Tax | 153 | $333.15 |
| Feb 17, 2026 | Kenningham Daryldirector, officer: President & CEO | Tax | 563 | $333.15 |
| Feb 17, 2026 | MCHENRY DANIEL JAMESofficer: SVP & CFO | Tax | 169 | $333.15 |
| Feb 17, 2026 | Kenningham Daryldirector, officer: President & CEO | Tax | 1,018 | $333.15 |
| Feb 13, 2026 | Kenningham Daryldirector, officer: President & CEO | Tax | 2,125 | $338.54 |
| Feb 13, 2026 | MCHENRY DANIEL JAMESofficer: SVP & CFO | Tax | 232 | $338.54 |
| Feb 13, 2026 | Hobson Gillian A.officer: SVP, Chief Legal Officer & Sec | Tax | 144 | $338.54 |
| Feb 13, 2026 | Hobson Gillian A.officer: SVP, Chief Legal Officer & Sec | Tax | 121 | $339.19 |
| Feb 13, 2026 | MCHENRY DANIEL JAMESofficer: SVP & CFO | Tax | 138 | $339.19 |
| Feb 13, 2026 | Washburn Shelleyofficer: SVP, Chief Marketing Officer | Tax | 53 | $338.54 |
| Feb 13, 2026 | Washburn Shelleyofficer: SVP, Chief Marketing Officer | Tax | 42 | $339.19 |
Source: GPI SEC Form 4 filings, latest May 21, 2026. For informational purposes only — not investment advice.
See the full GPI insider & 13F page →GPI research & analysis
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CarMax's $150M SG&A savings target would close the overhead efficiency gap with franchised peers like AutoNation and Lithia on a gross-profit-absorption basis, but would only narrow the operating margin gap by about one-third. The remaining shortfall stems from CarMax's structurally lower gross margins inherent to its pure used-car model.
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Group 1 Automotive, Inc. company profile
Overview
Group 1 Automotive, Inc. (NYSE:GPI) is a leading automotive retailer that operates one of the largest networks of automotive dealerships in the United States and United Kingdom. Founded in 1995 and incorporated in Houston, Texas, the company went public in 1997. Group 1 has grown through strategic acquisitions to become a major consolidator in the fragmented automotive retail industry, currently operating over 200 dealerships across 17 U.S. states and 35 towns in the UK, representing 35 different automotive brands.
Business
Group 1 Automotive operates in the automotive retail industry, functioning as an intermediary between automobile manufacturers and consumers. The company's core business revolves around operating franchised automotive dealerships that sell new and used vehicles, provide financing and insurance services, and offer maintenance and repair services. The automotive dealership industry operates under a franchise model where manufacturers like Ford, BMW, Mercedes-Benz, and others grant exclusive territorial rights to dealerships to sell their vehicles and provide associated services. This creates a protected distribution system where dealerships cannot directly compete with each other on the same brand within designated geographic areas. Group 1's business is divided into two primary geographic segments: 1. **U.S. Operations** (approximately 70-75% of revenue): The company operates dealerships across 17 states, with a significant concentration in Texas. These dealerships sell both mainstream brands (like Ford, Chevrolet) and luxury brands (like BMW, Mercedes-Benz, Audi). The U.S. operations have consistently shown strong performance in new vehicle sales, parts and service operations. 2. **UK Operations** (approximately 25-30% of revenue): Group 1 has a substantial presence in the UK market, particularly focused on luxury automotive brands. The UK operations have expanded significantly through acquisitions, including the major 2024 acquisition of 54 Inchcape dealerships, which added approximately $2.7 billion in expected annual revenue. The company's revenue streams include new vehicle sales, used vehicle sales, parts and service (aftersales), and finance and insurance (F&I) products. Each dealership typically offers the complete spectrum of automotive retail services under one roof, creating multiple touchpoints with customers throughout the vehicle ownership lifecycle.
Revenue model
Group 1 Automotive generates revenue through multiple complementary business models within the automotive retail ecosystem: **Primary Revenue Streams:** 1. **Vehicle Sales**: The company earns gross profit margins on both new and used vehicle sales. New vehicle margins are largely determined by manufacturer incentives and market demand, while used vehicle margins depend on acquisition costs, reconditioning expenses, and local market pricing. 2. **Finance and Insurance (F&I)**: Group 1 acts as an intermediary, arranging vehicle financing through third-party lenders and selling insurance products, extended warranties, and service contracts. The company earns commissions on these arrangements, with F&I generating some of the highest margin revenue at approximately $2,400+ per vehicle sold. 3. **Parts and Service (Aftersales)**: This includes warranty work (reimbursed by manufacturers), customer-paid repairs, maintenance services, and parts sales. This segment provides recurring revenue with higher margins and less cyclical performance than vehicle sales. **Customer Base**: Group 1 serves both individual consumers and commercial fleet customers. The company maintains relationships with automotive manufacturers who provide inventory, warranty reimbursements, and various incentive programs. **Margin Influencing Factors:** Several factors significantly impact Group 1's profitability. Positive margin drivers include strong consumer demand for vehicles, manufacturer incentive programs, aging vehicle populations requiring more service, and the company's ability to attract and retain skilled technicians. The company benefits from its scale in negotiating with lenders and insurance providers for F&I products. Negative margin pressures come from intense competition among dealerships, manufacturer production constraints affecting inventory levels, economic downturns reducing consumer spending on vehicles, rising interest rates affecting financing demand, and regulatory changes such as electric vehicle mandates in certain markets. The company also faces ongoing challenges in recruiting qualified automotive technicians, which can limit service department capacity and growth.
Competitive moat
Group 1 Automotive operates within a moderately protected industry structure, though its competitive moat is primarily derived from regulatory and operational advantages rather than unique proprietary assets. **Franchise Protection**: The company's strongest moat comes from the automotive franchise system, where manufacturers grant exclusive territorial rights to sell specific brands. These franchise agreements create geographic monopolies that prevent direct competition on the same brand within designated areas. However, this protection is dependent on maintaining good relationships with manufacturers and meeting performance standards. **Scale Advantages**: Group 1's size provides operational leverage in several areas. The company can negotiate better terms with lenders for F&I products, achieve economies of scale in advertising and overhead costs, and maintain more sophisticated inventory management systems. Its large network also allows for better technician training programs and career advancement opportunities, helping with recruitment and retention. **Local Market Position**: Established dealerships benefit from local brand recognition, customer relationships, and prime real estate locations that are difficult for new entrants to replicate. The company's investment in facilities, service capabilities, and customer databases creates switching costs for consumers. **Competitive Vulnerabilities**: The automotive retail industry faces several potential disruptions. Direct-to-consumer sales models from manufacturers like Tesla bypass traditional dealerships entirely. Online vehicle purchasing platforms and digital retailing tools are changing consumer behavior and potentially reducing the value of physical dealership locations. Additionally, the transition to electric vehicles may reduce the importance of service departments, as EVs require less maintenance than internal combustion engines. The company's moat is moderate rather than strong, as it depends heavily on regulatory protection and manufacturer relationships that could potentially change. While the franchise system provides near-term protection, long-term industry evolution toward direct sales models and digital platforms poses meaningful threats to the traditional dealership model.
Risks & safety
Group 1 Automotive presents a moderate margin of safety with manageable financial risks but cyclical earnings exposure. **Liquidity and Solvency:** - Cash position: $70.5 million as of Q1 2025, supplemented by $1.2 billion in total liquidity - Debt-to-equity ratio: 1.76x, indicating moderate leverage typical for the industry - Current ratio: 1.00x, showing adequate short-term liquidity management - Free cash flow: $106.5 million in Q1 2025, demonstrating consistent cash generation **Valuation Metrics:** - P/E ratio: 9.7x based on recent earnings, suggesting reasonable valuation - EV/EBITDA: 9.4x, within reasonable range for automotive retail - Price-to-book: 1.67x, reflecting modest premium to book value **Other Considerations:** The company operates in a cyclical industry with earnings sensitivity to economic conditions, consumer confidence, and interest rates. However, the diversified revenue streams from vehicle sales, F&I, and service operations provide some stability. The recent major acquisition in the UK increases integration risk and geographic concentration, while the ongoing industry transition to electric vehicles presents long-term structural uncertainty.
Recent development
Over the past few years, Group 1 Automotive has pursued an aggressive growth strategy centered on strategic acquisitions and operational improvements. The most significant development was the 2024 acquisition of 54 Inchcape dealerships in the UK for approximately $2.7 billion in expected annual revenue, which dramatically expanded the company's UK presence and strengthened relationships with luxury automotive brands. The company has focused heavily on developing its aftersales operations, recognizing parts and service as a key differentiator and stable revenue source. Management has invested significantly in technician recruitment and retention, increasing technician headcount by 8% year-over-year in recent periods and implementing innovative programs like four-day work weeks to attract talent in a tight labor market. **Digital and Operational Initiatives**: Group 1 has launched branding initiatives to consolidate under the Group 1 name and has continued developing its AcceleRide digital platform to enhance customer engagement and streamline operations. The company has also invested in facility improvements, including air conditioning installations in service bays to improve working conditions for technicians. **UK Market Integration**: Following the Inchcape acquisition, Group 1 has initiated a comprehensive restructuring plan targeting £30 million in cost savings. This includes consolidating duplicative functions, closing underperforming standalone used vehicle sites, and implementing centralized decision-making processes. The company appointed Mark Raban as CEO of Group 1 UK to oversee the integration. **Capital Allocation Strategy**: The company has maintained a balanced approach between growth acquisitions and shareholder returns, repurchasing approximately $122.8 million in shares (2% of the company) in Q1 2025 alone. Management has consistently demonstrated discipline in capital allocation, focusing on franchise dealership acquisitions while maintaining flexibility to return capital to shareholders when acquisition opportunities are limited.
GPI company profile · for informational purposes only — not investment advice.
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