Expert Outlook: Group 1 Automotive Through The Eyes Of 6 Analysts

Analysts' ratings for Group 1 Automotive GPI over the last quarter vary from bullish to bearish, as provided by 6 analysts.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Group 1 Automotive, presenting an average target of $453.67, a high estimate of $500.00, and a low estimate of $420.00. This upward trend is evident, with the current average reflecting a 6.75% increase from the previous average price target of $425.00.

Interpreting Analyst Ratings: A Closer Look

The standing of Group 1 Automotive among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Group 1 Automotive. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Group 1 Automotive compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Group 1 Automotive's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Group 1 Automotive's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Group 1 Automotive analyst ratings.

All You Need to Know About Group 1 Automotive

As of October, Group 1 owns and operates 44 collision centers and 260 automotive dealerships in the us and the UK, offering 35 brands of automobiles altogether. About 150 of the stores are in the us with locations mostly in metropolitan areas in 17 states in the Northeast, Southeast, Midwest, and California. Texas alone contributed 38% of new-vehicle unit volume in 2023 and the UK about 19%. Texas, Oklahoma, and Massachusetts combined was 53%. Revenue in 2023 totaled $17.9 billion. The August, Inchcape UK deal adds about $2.7 billion of annual revenue and 54 stores to bring the UK store count to 114. Group 1 was founded in 1995 and is based in Houston.

Group 1 Automotive: A Financial Overview

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Over the 3 months period, Group 1 Automotive showcased positive performance, achieving a revenue growth rate of 10.97% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Group 1 Automotive's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.2% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Group 1 Automotive's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.93%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.22%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 1.84, Group 1 Automotive adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.