Is It Time To Revisit Group 1 Automotive (GPI) After Recent Share Price Weakness?

Simply Wall St.

May 03

If you are wondering whether Group 1 Automotive at around US$353.67 is a bargain or fully priced, the key is to understand what the current share price implies about the company’s value. The stock has...

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The stock has...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-gpi/group-1-automotive/news/is-it-time-to-revisit-group-1-automotive-gpi-after-recent-sh\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Time To Revisit Group 1 Automotive (GPI) After Recent Share Price Weakness?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Time To Revisit Group 1 Automotive (GPI) After Recent Share Price Weakness?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-05-03 01:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/retail/nyse-gpi/group-1-automotive/news/is-it-time-to-revisit-group-1-automotive-gpi-after-recent-sh><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Group 1 Automotive at around US$353.67 is a bargain or fully priced, the key is to understand what the current share price implies about the company’s value. The stock has...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-gpi/group-1-automotive/news/is-it-time-to-revisit-group-1-automotive-gpi-after-recent-sh\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GPI","symbol_name":"汽车一组","start_time":0,"source_url":"https://simplywall.st/stocks/us/retail/nyse-gpi/group-1-automotive/news/is-it-time-to-revisit-group-1-automotive-gpi-after-recent-sh","article_id":"2632674384","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551705-choice2-main-header/1585186844427"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/retail/nyse-gpi/group-1-automotive/news/is-it-time-to-revisit-group-1-automotive-gpi-after-recent-sh","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2632674384","pubTimestamp":1777743563,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Group 1 Automotive at around US$353.67 is a bargain or fully priced, the key is to understand what the current share price implies about the company’s value.\nThe stock has moved 3.6% over the last week and 6.9% over the last month. Year to date it shows a 9.9% decline and a 13.8% decline over the past year, set against longer term returns of 63.3% over three years and 115.7% over five years.\nRecent coverage of Group 1 Automotive has focused on the company’s...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"GPI":"汽车一组","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4214":"汽车零售"},"translate_title":"在最近股价疲软之后，是时候重新审视Group 1 Automotive(GPI)了吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GPI":1.5,"DCF":1},"content_text":"If you are wondering whether Group 1 Automotive at around US$353.67 is a bargain or fully priced, the key is to understand what the current share price implies about the company’s value. The stock has moved 3.6% over the last week and 6.9% over the last month. Year to date it shows a 9.9% decline and a 13.8% decline over the past year, set against longer term returns of 63.3% over three years and 115.7% over five years. Recent coverage of Group 1 Automotive has focused on the company’s position in the US auto retail sector, including commentary on dealer networks, inventory conditions, and the broader car buying environment. These themes give useful context for the mixed short term and long term share price moves. Simply Wall St’s valuation model currently gives Group 1 Automotive a value score of 6 out of 6. This sets up a closer look at how different valuation methods assess the stock and points to an even richer way of thinking about value that will be covered at the end of this article.  Find out why Group 1 Automotive's -13.8% return over the last year is lagging behind its peers. AdvertisementApproach 1: Group 1 Automotive Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a business could be worth by projecting its future cash flows and discounting them back to today’s value. It aims to answer what those future dollars are worth in today’s terms. For Group 1 Automotive, the model uses a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $499.5 million. Analysts have specific free cash flow estimates through 2030, such as $412 million in 2026 and $665 million in 2030, with later years extrapolated by Simply Wall St rather than based on additional analyst forecasts. On this basis, the DCF model points to an estimated intrinsic value of about $553.56 per share, compared with the recent share price of roughly $353.67. That difference corresponds to an estimate that the stock trades around 36.1% below this intrinsic value, which indicates that, within the assumptions of this cash flow model, the shares screen as materially undervalued. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Group 1 Automotive is undervalued by 36.1%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks. GPI Discounted Cash Flow as at May 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Group 1 Automotive. Approach 2: Group 1 Automotive Price vs Earnings For a profitable company like Group 1 Automotive, the P/E ratio is a helpful way to see how much you are paying for each dollar of earnings. Higher growth expectations and lower perceived risk usually justify a higher P/E, while slower growth and higher risk tend to point to a lower “normal” or “fair” P/E. Group 1 Automotive currently trades on a P/E of 12.9x. This sits below both the Specialty Retail industry average P/E of 19.9x and a broader peer group average of 28.9x. Simply Wall St also calculates a proprietary “Fair Ratio” for the stock of 16.9x, which is the P/E that would be expected given factors such as its earnings profile, industry, profit margins, market cap and risk characteristics. The Fair Ratio is more tailored than a simple comparison with peers or the industry because it adjusts for company specific traits rather than assuming all retailers deserve the same multiple. Comparing the current 12.9x P/E with the 16.9x Fair Ratio suggests the shares are pricing in a lower multiple than this framework indicates. Result: UNDERVALUED NYSE:GPI P/E Ratio as at May 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 18 top founder-led companies. Upgrade Your Decision Making: Choose your Group 1 Automotive Narrative Earlier it was mentioned that there is an even better way to understand valuation, so this is where Narratives come in. This is a simple way for you to attach a clear story about Group 1 Automotive to the numbers, such as your assumed fair value and your expectations for future revenue, earnings and margins. A Narrative connects three things in one place: the business story, a financial forecast, and the fair value that drops out of those assumptions. On Simply Wall St you can explore and build these Narratives directly on the Community page that is used by millions of investors. Once you have a Narrative, you can compare its Fair Value with the current share price to help decide whether you see the stock as closer to a buy, a hold or a sell for your own portfolio. That view updates automatically when new data points arrive, such as news or earnings. For Group 1 Automotive, one Narrative might lean toward the lower fair value of about US$366, with cautious assumptions about revenue growth and future P/E. Another might lean toward the higher fair value of about US$500, with more optimistic views on margins and the impact of share repurchases and dividends. Your job is to decide which story feels more realistic based on your reading of the business. Do you think there's more to the story for Group 1 Automotive? Head over to our Community to see what others are saying! NYSE:GPI 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}