Group 1 Automotive Inc (GPI, Financial), a leading player in the Vehicles & Parts industry, is currently trading at $262.77 with a market capitalization of $3.69 billion. The stock has seen a gain of 3.12% today and a 2.29% increase over the past four weeks. GPI's impressive GF Score of 92 out of 100 indicates its high outperformance potential, making it an attractive option for value investors.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five key aspects of valuation: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. Each of these components is ranked, and the ranks have a positive correlation with the long-term performances of stocks. The GF Score ranges from 0 to 100, with 100 as the highest. Stocks with a higher GF Score generally generate higher returns than those with lower GF Scores.
Financial Strength of GPI
GPI's Financial Strength rank is 6 out of 10. This rank measures the robustness of a company's financial situation. GPI's high interest coverage of 7.90 and low debt to revenue ratio of 0.22 contribute to its strong financial health. Additionally, its Altman Z score of 3.85 further attests to its financial stability.
Profitability Rank of GPI
The company's Profitability Rank is 9 out of 10, indicating its high profitability. GPI's operating margin stands at 6.14%, and its Piotroski F-Score is 5. The company has also demonstrated consistent profitability over the past 10 years.
Growth Rank of GPI
GPI's Growth Rank is a perfect 10 out of 10, reflecting its strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 11.80%, and its 3-year revenue growth rate is 17.30%. Its 5-year EBITDA growth rate is an impressive 32.70%.
GF Value Rank of GPI
The GF Value Rank of GPI is 5 out of 10. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank of GPI
GPI's Momentum Rank is 6 out of 10, indicating a positive momentum in its stock price performance. This rank is determined using the standardized momentum ratio and other momentum indicators.
Comparison with Competitors
When compared to its competitors in the same industry, GPI stands out with its high GF Score. Rush Enterprises Inc (RUSHA, Financial) has a GF Score of 88, while Driven Brands Holdings Inc (DRVN, Financial) and ACV Auctions Inc (ACVA, Financial) have GF Scores of 21 and 19, respectively. This comparison further highlights GPI's strong performance potential. For more details, please visit the competitors page.
In conclusion, Group 1 Automotive Inc (GPI, Financial) presents a compelling investment opportunity with its high GF Score, strong financial strength, high profitability, robust growth, and positive momentum. Investors should consider GPI for its potential to generate high returns.
