Forecasting The Future: 4 Analyst Projections For Group 1 Automotive

Across the recent three months, 4 analysts have shared their insights on Group 1 Automotive GPI, expressing a variety of opinions spanning from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Group 1 Automotive and provided 12-month price targets. The average target is $301.25, accompanied by a high estimate of $330.00 and a low estimate of $255.00. This current average reflects an increase of 14.76% from the previous average price target of $262.50.

Diving into Analyst Ratings: An In-Depth Exploration

The analysis of recent analyst actions sheds light on the perception of Group 1 Automotive by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Group 1 Automotive. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Group 1 Automotive compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Group 1 Automotive's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Group 1 Automotive's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Group 1 Automotive analyst ratings.

All You Need to Know About Group 1 Automotive

As of year-end 2023, Group 1 owns and operates 41 collision centers and 199 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 Inchcape UK deal should close in third-quarter 2024 and add about $3 billion of revenue. That deal will bring the UK store count to 109 and total stores to more than 250. The company was founded in 1995 and is based in Houston.

Breaking Down Group 1 Automotive's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Group 1 Automotive showcased positive performance, achieving a revenue growth rate of 10.1% as of 31 December, 2023. 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.1%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Group 1 Automotive's ROE excels beyond industry benchmarks, reaching 3.55%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Group 1 Automotive's ROA excels beyond industry benchmarks, reaching 1.23%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 1.46, Group 1 Automotive adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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