Group 1 Automotive, Inc. (GPI) AI Stock Analysis

Group 1 Automotive, Inc., based in Houston, Texas, operates in the automotive retail sector through its subsidiaries. The company sells new and used cars, light trucks, and vehicle parts, while also providing vehicle financing arrangements, service and insurance contracts, and maintenance and repair services. Founded in 1995, Group 1 Automotive maintains a portfolio of automotive brands and works with vehicle manufacturers to serve retail customers across an extensive network of dealership locations.

Group 1 Automotive generated a 5-year revenue CAGR of 16.3% between FY2020 and FY2025, with revenue climbing from $13.48B in FY2021 to $22.57B in FY2025. However, net margins compressed steadily over the same span, moving from 4.1% in FY2021 to 1.4% in FY2025 as net income decreased from $552.1M to $323.7M. In the latest quarter ended June 30, 2026, quarterly revenue fell 5.6% year-over-year, while quarterly earnings declined 20.1% year-over-year, leaving trailing twelve month net margin at 1.3% on $22.15B in revenue.

As of June 30, 2026, Group 1 Automotive held $164.5M in cash and short-term investments against $5.98B in total debt, yielding net debt of $5.82B and a debt-to-equity ratio of 2.03. The current ratio was 1.02, alongside shareholders' equity of $2.95B. In FY2025, operating cash flow reached $644.9M and free cash flow stood at $374.9M. Capital allocation in FY2025 included $270.0M for capital expenditures, $554.8M for share buybacks, and $25.6M for dividend payments.

Group 1 Automotive trades at a trailing P/E of 10.1x and a forward P/E of 5.7x, both below the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its price-to-sales multiple is 0.1x, compared to the peer median of 0.7x, while its EV/EBITDA stands at 10.5x versus the peer median of 11.1x. The stock has dropped 43.4% over the past year, underperforming the S&P 500 (SPY) gain of 16.8%, and currently trades 22.7% below its 200-day average.

Group 1 Automotive pays an annual forward dividend of $2.20 per share, delivering a dividend yield of 0.91% based on a payout ratio of 5.8%. The company distributes dividends quarterly and has paid dividends for 17 consecutive years, with a 5-year annualized dividend growth rate of 27.2%. Its last ex-dividend date was September 1, 2026.

Wall Street analysts hold 7 Strong Buy, 1 Buy, 3 Hold, 0 Sell, and 1 Strong Sell recommendations on GPI. The mean price target is $333.33, representing a 37.6% premium over the last close of $242.22. Consensus estimates project current fiscal year EPS of $37.19, reflecting an 8.6% drop on $22.10B in revenue. For the following fiscal year, 12 analysts expect EPS of $40.86 on revenue of $23.26B. The company recorded 0 EPS beats over the last 4 quarters, with next earnings scheduled for October 28, 2026.

This page is an AI-written research summary of Group 1 Automotive, Inc. (GPI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: GPI income statement, GPI balance sheet, GPI key metrics, GPI analyst forecast, GPI chart. See the GPI stock overview for the latest quote and news.