Assessing Group 1 Automotive: Insights From 5 Financial Analysts

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Analysts' ratings for Group 1 Automotive GPI over the last quarter vary from bullish to bearish, as provided by 5 analysts.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 3 2 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 2 1 0 0
3M Ago 0 0 1 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $390.8, along with a high estimate of $430.00 and a low estimate of $285.00. Witnessing a positive shift, the current average has risen by 17.98% from the previous average price target of $331.25.

price target chart

Decoding Analyst Ratings: A Detailed Look

The standing of Group 1 Automotive among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Rajat Gupta JP Morgan Raises Overweight $425.00 $420.00
Adam Jonas Morgan Stanley Raises Overweight $430.00 $285.00
Jeff Lick Stephens & Co. Announces Equal-Weight $394.00 -
Rajat Gupta JP Morgan Raises Overweight $420.00 $360.00
Adam Jonas Morgan Stanley Raises Equal-Weight $285.00 $260.00

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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Group 1 Automotive's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Group 1 Automotive analyst ratings.

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's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Group 1 Automotive's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.97% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Group 1 Automotive's net margin excels beyond industry benchmarks, reaching 2.2%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.93%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Group 1 Automotive's ROA stands out, surpassing industry averages. With an impressive ROA of 1.22%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Group 1 Automotive's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.84.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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

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