Breaking Down Group 1 Automotive: 4 Analysts Share Their Views
Throughout the last three months, 4 analysts have evaluated Group 1 Automotive (NYSE:GPI), offering a diverse set of opinions from bullish to bearish.
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 | 1 | 2 | 1 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 1 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $454.0, along with a high estimate of $495.00 and a low estimate of $426.00. A decline of 3.25% from the prior average price target is evident in the current average.
Analyzing Analyst Ratings: A Detailed Breakdown
An in-depth analysis of recent analyst actions unveils how financial experts perceive Group 1 Automotive. The following summary 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 | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Ronald Jewsikow |Guggenheim |Lowers |Buy | $426.00|$502.00 | |Rajat Gupta |JP Morgan |Lowers |Overweight | $435.00|$495.00 | |Rajat Gupta |JP Morgan |Raises |Overweight | $495.00|$420.00 | |Jeff Lick |Stephens & Co. |Maintains |Equal-Weight | $460.00|$460.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Group 1 Automotive. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Group 1 Automotive compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Group 1 Automotive's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Group 1 Automotive's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on Group 1 Automotive analyst ratings.
Get to Know Group 1 Automotive Better
Group 1 owns and operates 39 collision centers and 258 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 to bring the UK store count to 114. The firm entered the UK in 2007. Group 1 was founded in 1995 and is based in Houston.
Group 1 Automotive's Financial Performance
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: Group 1 Automotive's revenue growth over a period of 3M has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 23.8%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Group 1 Automotive's net margin excels beyond industry benchmarks, reaching 1.68%. 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 3.12%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Group 1 Automotive's ROA excels beyond industry benchmarks, reaching 0.94%. This signifies efficient management of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.76.
What Are Analyst Ratings?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.