Group 1 Automotive

GPI

Auto - Dealerships · Consumer Cyclical

Price

$326.06

-5.56 (-1.68%)

Market Cap

$3.88B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

−28.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 17.7M (2021) → 12.7M (2025)

Group 1 Automotive is one of the largest car dealership chains in the United States and the United Kingdom. It sells new and used cars, trucks, and SUVs from brands like Toyota, BMW, Ford, Honda, and Mercedes-Benz. Everyday consumers and businesses buy vehicles through its network of roughly 250 dealerships.

The company makes money in several ways: selling vehicles, arranging financing and insurance for buyers, and servicing cars in its repair shops. Parts and service tend to carry higher margins than vehicle sales and help smooth out revenue when car-buying slows down. Group 1 operates mainly in the U.S. and U.K., generating around $18 billion in annual revenue, which makes it one of the top five dealership groups in the country. The main risk it faces is that rising interest rates make car loans more expensive, which can push buyers to the sidelines and pressure both sales volume and profit margins.

Winston Score History

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+11.2% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

3.5%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~7 years

$42M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

$42M cash & investments at current burn rate

Revenue declining

Group 1 Automotive's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

15.7%

Thin — 15.7% gross margin

Operating Margin

4.6%

Thin — 4.6% operating margin

ROCE

3.0%

Weak — 3.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+7.2%

Steady sales growth (7.2% YoY)

EPS YoY

-26.8%

Earnings shrinking (-26.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

178%

Turns 178% of profit into real cash

FCF Margin

1.2%

Thin free cash flow (1.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

1.90

Elevated debt (1.90)

Interest Cover

3.15x

Tight — interest eats into profit (3.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

12.5x

Attractive valuation — P/E 12.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+6.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (12.5 → 5.7)

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Dividends

Dividend Yield

0.71%

Small dividend — 0.71% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+8.2%

Dividend growing modestly (8.2% YoY)

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