Group 1 Automotive operates in the automotive retail industry. It sells new and used cars, light trucks, and vehicle parts; arranges vehicle financing; sells service and insurance contracts; and provides automotive maintenance and repair services. The company was founded in 1995 and is based in Houston, Texas.
GPI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Group 1 Automotive Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Group 1 Automotive Inc ranked in the 88th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Group 1 Automotive Inc, consider:
The compound growth rate in the free cash flow of Group 1 Automotive Inc over the past 5.76 years is 0.68%; that's higher than 93.24% of free cash flow generating stocks in the Consumer Cyclical sector.
25% of the company's capital comes from equity, which is greater than only 11.52% of stocks in our cash flow based forecasting set.
Group 1 Automotive Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 14.4% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Group 1 Automotive Inc? See RUSHA, BITA, MSGN, PRTY, and PLAY.
Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today announced the appointment of Daniel McHenry as Chief Financial Officer (CFO) effective August 15, 2020. He will replace long time Group 1 CFO John Rickel, who has elected to retire from the company at the end of this year after almost 15 years of service.