Assessing Group 1 Automotive: Insights From 6 Financial Analysts

6 analysts have expressed a variety of opinions on Group 1 Automotive (NYSE:GPI) over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have recently evaluated Group 1 Automotive and provided 12-month price targets. The average target is $479.0, accompanied by a high estimate of $565.00 and a low estimate of $415.00. Experiencing a 2.64% decline, the current average is now lower than the previous average price target of $492.00.

Investigating Analyst Ratings: An Elaborate Study

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.

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 set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

For valuable insights into Group 1 Automotive's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Group 1 Automotive analyst ratings.

Unveiling the Story Behind Group 1 Automotive

Group 1 owns and operates 39 collision centers and 260 automotive dealerships in the US and the UK, offering 35 brands of automobiles altogether. Slightly over half 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 33.5% of new-vehicle unit volume in 2024 and the UK 22.6%. Texas, Massachusetts, and California combined was 48.5%. Revenue in 2024 totaled $19.9 billion. The August 2024 Inchcape UK deal adds about $2.7 billion of annual revenue and 54 stores. The firm entered the UK in 2007 and has 116 stores and about one-third of its new vehicle unit volume there. Group 1 was founded in 1995 and is based in Houston.

Financial Insights: Group 1 Automotive

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Group 1 Automotive's revenue growth over a period of 3M has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 23.15%. This indicates 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 2.33%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Group 1 Automotive's ROE excels beyond industry benchmarks, reaching 4.29%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Group 1 Automotive's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.3% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Group 1 Automotive's debt-to-equity ratio is below the industry average. With a ratio of 1.76, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

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.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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