GPIGroup 1 Automotive, Inc.
Is the business good?
The checks split: nothing decisive, though margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is mostly backed by cash. Conversion is worsening vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GPI?
Group 1 Automotive, Inc. earns 8.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.10 points below what the capital costs: growth destroys value
- Operating margin
- 3.1%
Operating margin · Auto & Truck Dealerships median 5.1% · 12 months to Q2 2026
- Cash conversion
- 0.89×
Cash conversion · 1.26× a year ago · most of the operating profit arrived as cash, working capital took the rest
- Share count, year on year
- −7.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 4.7% |
| FY2021 | 6.6% |
| FY2022 | 6.7% |
| FY2023 | 5.4% |
| FY2024 | 4.6% |
| FY2025 | 3.3% |
Details›
- Gross margin12 months to Q2 2026
- 16%
- Operating margin12 months to Q2 2026
- 3.1%
- Net margin12 months to Q2 2026
- 1.3%
- Free cash flow margin
- 0.75%
- Revenue, trailing twelve months
- $22.2B
- Free cash flow, trailing twelve months
- $166M
- Net income, trailing twelve months
- $290M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Auto & Truck Dealerships
Ranks #7 of 13 by RyuScore