olivLaw · US equity research
Group 1 Automotive, Inc. GPI
Retail-Auto Dealers & Gasoline Stations · SIC 5500 · Vertical: Retail-Auto Dealers & Gasoline Stations (SIC 5500)
Group 1 Automotive is a large automotive dealer operator in the United States and the United Kingdom that sells new and used vehicles, arranges financing, sells service and insurance contracts and provides maintenance and parts. It matters now because of its acquisition-led expansion, a senior notes offering of 1,250.0 million USD, and uncertainty over tariffs, the UK motor finance review and vehicle demand.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Group 1 Automotive, Inc. (GPI) stock was 272.81 USD (+2.94% on the day), with market capitalisation 3.3 bn USD, P/E 8.6 on diluted EPS of 31.64 USD over the last 12 months, dividend yield 0.79%, beta 0.76, 52-week range 224.85–426.91 USD. Latest reported quarter (Q3 2026): revenue of 5.4 bn USD (−6.7% YoY), net income of 102.9 m USD (+691.5% YoY), diluted EPS 8.59 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 62.4
- strong (55–70)
- Bollinger (20, 2)
- 218.08 – 273.04
- in the upper half of the band · %B 1.00 · band width 22.4%
- SMA 50 / 200
- 254.92 / 304.95
- mixed trend
- MACD (12, 26, 9)
- 4.51 / 0.03
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +13.0% | −2.0% | +15.0 pp | — |
| 3 months | −1.7% | −2.2% | +0.4 pp | — |
| 6 months | −20.7% | +4.3% | −25.0 pp | — |
| Year to date | −30.6% | +10.6% | −41.2 pp | — |
| 1 year | −29.8% | +10.5% | −40.2 pp | +0.3% |
| 3 years | −0.8% | +73.7% | −74.4 pp | +18.2% |
| 5 years | +38.5% | +61.7% | −23.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5.5 bn | 5.5 bn | 5.7 bn | 5.8 bn | 5.6 bn | 5.4 bn | 5.4 bn | 5.4 bn |
| Cost of revenue | 4.7 bn | 4.6 bn | 4.8 bn | 4.9 bn | 4.7 bn | 4.5 bn | 4.5 bn | 4.5 bn |
| Gross profit | 879.2 m | 891.9 m | 935.8 m | 919.7 m | 874.4 m | 877.9 m | 860.6 m | 854.8 m |
| SG&A | 614.3 m | 617.3 m | 646.1 m | 654.9 m | 627.3 m | 600.6 m | 623.5 m | 618.2 m |
| Operating income | 193.7 m | 233.9 m | 253.0 m | 107.8 m | 139.3 m | 242.6 m | 203.1 m | 200.7 m |
| Depreciation & amortisation | — | 29.3 m | 28.7 m | 31.6 m | — | 31.1 m | 30.9 m | 31.2 m |
| Pre-tax income | 122.7 m | 167.5 m | 183.9 m | 36.2 m | 62.4 m | 170.5 m | 134.4 m | 131.5 m |
| Income tax | 28.0 m | 39.7 m | 44.0 m | 23.0 m | 19.4 m | 40.6 m | 31.4 m | 28.7 m |
| Net income | 94.8 m | 128.1 m | 140.5 m | 13.0 m | 43.6 m | 130.2 m | 103.3 m | 102.9 m |
| Diluted EPS | 7.24 ≈ | 9.67 | 10.82 | 1.00 | 3.56 ≈ | 10.85 | 8.64 | 8.59 |
| Operating cash flow | 212.6 m | 158.7 m | 251.6 m ≈ | 155.0 m ≈ | 129.2 m | 92.4 m | 62.6 m ≈ | 187.0 m ≈ |
| Capex | 92.5 m | 52.2 m | 71.7 m ≈ | 68.3 m ≈ | 77.8 m | 84.0 m | 42.8 m ≈ | 40.3 m ≈ |
| Dividends paid | 6.2 m | 6.6 m | 6.5 m ≈ | 6.4 m ≈ | 6.1 m | 6.6 m | 6.5 m ≈ | 6.6 m ≈ |
| Share repurchases | 32.0 m | 122.8 m | 44.5 m ≈ | 82.5 m ≈ | 305.0 m | 72.4 m | 0 ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 63 percentile of its own 40-quarter history (min 3.5, median 7.5, max 15.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 11.6 bn | 11.6 bn | 10.6 bn | 13.5 bn | 16.2 bn | 17.9 bn | 19.9 bn | 22.6 bn |
| Revenue YoY | +4.3% | −0.0% | −8.6% | +27.2% | +20.3% | +10.2% | +11.5% | +13.2% |
| Net income | 157.8 m | 174.0 m | 286.5 m | 552.1 m | 751.5 m | 601.6 m | 498.1 m | 325.2 m |
| Net income YoY | −26.1% | +10.3% | +64.7% | +92.7% | +36.1% | −19.9% | −17.2% | −34.7% |
| Diluted EPS | 7.83 | 9.34 | 15.51 | 30.11 | 47.14 | 42.73 | 36.81 | 25.24 |
| Diluted EPS YoY | −22.3% | +19.3% | +66.1% | +94.1% | +56.6% | −9.4% | −13.9% | −31.4% |
| net % | 1.4% | 1.5% | 2.7% | 4.1% | 4.6% | 3.4% | 2.5% | 1.4% |
| Free cash flow | 129.0 m | 179.1 m | 702.2 m | 1.1 bn | 430.4 m | 4.8 m | 341.2 m | 424.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 32.5 m USD
- Financial debt
- 259.0 m USD
- Net debt
- 226.5 m USD
- Equity
- 2.8 bn USD
- Total assets
- 10.3 bn USD
- Debt / equity
- 0.09x
- Current ratio
- 1.08x
- ROE
- 11.3%
- ROA
- 3.2%
- FCF margin
- 1.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 10.6 bn | 13.5 bn | 16.2 bn | 17.9 bn | 19.9 bn | 22.6 bn | SEC (XBRL)· 13 Feb 2026verified |
| Cost of revenue | 8.9 bn | 11.0 bn | 13.3 bn | 14.9 bn | 16.7 bn | 18.9 bn | SEC (XBRL)· 13 Feb 2026verified |
| Gross profit | 1.7 bn | 2.4 bn | 3.0 bn | 3.0 bn | 3.2 bn | 3.6 bn | SEC (XBRL)· 13 Feb 2026verified |
| SG&A | 1.1 bn | 1.5 bn | 1.8 bn | 1.9 bn | 2.2 bn | 2.5 bn | SEC (XBRL)· 13 Feb 2026verified |
| Operating income | 495.7 m | 884.4 m | 1.1 bn | 968.6 m | 909.1 m | 734.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Depreciation & amortisation | 75.8 m | 78.9 m | — | — | — | — | SEC (XBRL)· 23 Feb 2022verified |
| EBITDA | 571.5 m ≈ | 963.3 m ≈ | — | — | — | — | SEC (XBRL)· 23 Feb 2022derived |
| Pre-tax income | 380.8 m | 800.9 m | 985.3 m | 800.2 m | 658.5 m | 449.9 m | SEC (XBRL)· 13 Feb 2026verified |
| Income tax | 84.2 m | 175.5 m | 231.1 m | 198.2 m | 161.5 m | 126.2 m | SEC (XBRL)· 13 Feb 2026verified |
| Net income | 286.5 m | 552.1 m | 751.5 m | 601.6 m | 498.1 m | 325.2 m | SEC (XBRL)· 13 Feb 2026verified |
| Diluted EPS | 15.51 | 30.11 | 47.14 | 42.73 | 36.81 | 25.24 | SEC (XBRL)· 13 Feb 2026verified |
| Weighted average diluted shares | 17.8 m | 17.7 m | 15.5 m | 13.7 m | 13.2 m | 12.7 m | SEC (XBRL)· 13 Feb 2026verified |
| Dividend per share | 0.60 | 1.33 | 1.50 | 1.80 | 1.88 | 2.00 | SEC (XBRL)· 13 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 69.0 m | 14.9 m | 47.9 m | 57.2 m | 34.4 m | 32.5 m | SEC (XBRL)· 13 Feb 2026verified |
| Inventories | 1.4 bn | 1.1 bn | 1.4 bn | 2.0 bn | 2.6 bn | 2.7 bn | SEC (XBRL)· 13 Feb 2026verified |
| Current assets | 2.0 bn | 1.7 bn | 2.0 bn | 2.8 bn | 3.5 bn | 3.7 bn | SEC (XBRL)· 13 Feb 2026verified |
| Property, plant & equipment, net | 1.6 bn | — | — | — | — | — | SEC (XBRL)· 24 Feb 2021verified |
| Goodwill | 997.1 m | 1.4 bn | 1.7 bn | 1.7 bn | 2.1 bn | 2.2 bn | SEC (XBRL)· 13 Feb 2026verified |
| Total assets | 5.1 bn | 5.7 bn | 6.7 bn | 7.8 bn | 9.8 bn | 10.3 bn | SEC (XBRL)· 13 Feb 2026verified |
| Accounts payable | 430.4 m | 457.8 m | 488.0 m | 499.3 m | 738.0 m | 732.8 m | SEC (XBRL)· 13 Feb 2026verified |
| Short-term debt | 56.0 m | 220.4 m | 130.3 m | 109.4 m | 175.3 m | 259.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Current liabilities | 1.8 bn | 1.5 bn | 1.9 bn | 2.5 bn | 3.4 bn | 3.4 bn | SEC (XBRL)· 13 Feb 2026verified |
| Equity | 1.4 bn † | 1.8 bn † | 2.2 bn † | 2.7 bn † | 3.0 bn † | 2.8 bn † | SEC (XBRL)· 13 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 805.4 m | 1.3 bn | 585.9 m | 190.2 m | 586.3 m | 694.5 m | SEC (XBRL)· 13 Feb 2026verified |
| Capex | 103.2 m | 143.6 m | 155.5 m | 185.4 m | 245.1 m | 270.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Free cash flow | 702.2 m ≈ | 1.1 bn ≈ | 430.4 m ≈ | 4.8 m ≈ | 341.2 m ≈ | 424.5 m ≈ | SEC (XBRL)· 13 Feb 2026derived |
| Investing cash flow | -74.7 m | -1.3 bn | -484.6 m | -366.1 m | -1.3 bn | -671.3 m | SEC (XBRL)· 13 Feb 2026verified |
| Financing cash flow | -668.1 m | -74.0 m | -67.3 m | 185.2 m | 681.1 m | -31.1 m | SEC (XBRL)· 13 Feb 2026verified |
| Dividends paid | 11.0 m | 23.9 m | 23.7 m | 25.2 m | 25.2 m | 25.6 m | SEC (XBRL)· 13 Feb 2026verified |
| Share repurchases | 80.2 m | 210.6 m | 521.2 m | 172.8 m | 161.6 m | 554.8 m | SEC (XBRL)· 13 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 68 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.3 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet44
- Valuation85
- Quality57
- Growth48
- Returns100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 306.78 – 704.13 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E306.78 – 704.13 (Mid 445.66)11 companies used · median multiple 14.1x · quartiles 9.7x – 22.3xABG, AN, CASY, CPRT, KMX, LAD, MUSA, OPLN, PAG, RUSHA, SAH
- Dividend discount (DDM)outside the aggregate26.28 – 35.34 (Mid 30.15)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 68/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 21.0% | 75 (vs peers) | 14% |
| Net margin · Quality | 1.7% | 41 (vs peers) | 9% |
| FCF conversion · Quality | 59.6% | 42 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 11.6% | 97 (on a fixed band) | 11% |
| EPS CAGR 3Y · Growth | -18.8% | 0 (on a fixed band) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.3x | 44 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 8.6x | 83 (vs peers) | 14% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 6.9% | 87 (on a fixed band) | 11% |
| Shareholder yield (distributions) · Returns | 12.4% | 100 (on a fixed band) | 9% |
| Payout ratio (FCF) · Returns | 11.4% | 100 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial44/100 · 1/3 factors with a value
- Growth48/100 · 2/2 factors with a value
- Quality57/100 · 3/3 factors with a value
- Returns100/100 · 2/2 factors with a value
- Valuation85/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Group 1 Automotive, Inc (GPI). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 22.6 bn USD in 2025; YoY growth 13.2%; net margin 1.7%; ROE 12.4%.
The estimated value range is 306.78–704.13 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 445.66 USD, the price of 272.81 USD leaves a potential of 63.4% (value / price − 1) and a margin of safety of 38.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 68/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 21.0%
- Revenue CAGR 3Y: 11.6%
- P/E (TTM): 8.6x
- FCF yield: 6.9%
- Shareholder yield (distributions): 12.4%
- Payout ratio (FCF): 11.4%
- The price is below the estimated value range
What contradicts it
- EPS CAGR 3Y: -18.8%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Retail-Auto Dealers & Gasoline Stations (SIC 5500) · same industry (4-digit SIC) · compared with 18 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CPRTCopart, Inc. | 28.8 bn | 20.0 | 16.2% | 31.8% | +0.4% | −20% / −38% |
| CASYCasey’s General Stores, Inc. | 24.6 bn | 32.0 | 20.0% | 4.1% | +10.2% | +17% / +142% |
| PAGPenske Automotive Group, Inc. | 13.9 bn | 15.5 | 15.5% | 2.8% | −0.2% | +31% / +42% |
| MUSAMurphy USA Inc. | 9.1 bn | 14.1 | 99.0% | 2.9% | −4.2% | +30% / +36% |
| KMXCarmax, Inc. | 7.8 bn | 26.9 | 4.7% | 1.1% | −1.8% | +43% / −14% |
| LADLithia Motors, Inc. | 6.8 bn | 9.1 | 11.8% | 2.1% | +4.0% | −1% / +18% |
| ANAutonation, Inc. | 5.9 bn | 8.8 | 30.2% | 2.6% | +3.2% | −13% / +36% |
| OPLNOPENLANE, Inc. | 4.5 bn | 24.5 | 13.4% | 9.7% | +8.2% | +44% / +151% |
| ABGAsbury Automotive Group, Inc. | 3.8 bn | 8.3 | 11.8% | 2.7% | +4.7% | −10% / −0% |
| GPIGroup 1 Automotive, Inc | 3.3 bn | 8.6 | 12.4% | 1.7% | +13.2% | −30% / −1% |
| NXXTNextnrg, Inc. | 427.3 m | — | — | -61.3% | +194.7% | +108% / −43% |
| VRMVroom, Inc. | 36.5 m | — | -45.0% | — | −54.2% | −66% / unavailable |
| KXINKaixin Holdings | 12.2 m | — | -307.2% | -41,788.4% | unavailable | −96% / −100% |
| CRMTAmerica’s Car-Mart, Inc. | 10.5 m | — | -43.0% | -18.6% | −7.9% | −94% / −98% |
| JZXNJiuzi Holdings Inc. | 1.4 m | — | -90.7% | -353.5% | +105.9% | −86% / −100% |
| CVNACarvana Co. | 0 | 0.0 | 51.5% | 6.2% | +48.6% | +4% / +1,138% |
| RUSHARush Enterprises, Inc. | — | 14.0 | 11.8% | 3.7% | −4.7% | +33% / +75% |
| SAHSonic Automotive, Inc. | — | 10.3 | 19.4% | 1.3% | +6.5% | +2% / +25% |
| CWHCamping World Holdings, Inc. | 0 | — | -33.2% | -1.6% | +4.4% | −52% / −74% |
1- and 3-year price returns: for GPI from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 173.72 Total return -36% · Per year -36% | 306.14 Total return 13% · Per year 13% | 459.78 Total return 70% · Per year 70% |
| 3 years | 193.66 Total return -27% · Per year -10% | 381.55 Total return 43% · Per year 13% | 625.52 Total return 133% · Per year 33% |
| 5 years | 215.89 Total return -17% · Per year -4% | 475.54 Total return 80% · Per year 12% | 851.00 Total return 219% · Per year 26% |
- Exit P/E± 95.39
- Net margin± 66.77
- Annual revenue growth± 51.30
- Annual dilution± 5.61
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 08 Sept 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (28 Oct 2026 · results).
In brief
Group 1 Automotive is a large automotive dealer operator in the United States and the United Kingdom that sells new and used vehicles, arranges financing, sells service and insurance contracts and provides maintenance and parts. It matters now because of its acquisition-led expansion, a senior notes offering of 1,250.0 million USD, and uncertainty over tariffs, the UK motor finance review and vehicle demand 13.
SWOT
Strengths
- A large, geographically diverse dealership network with access to many brands and an integrated model of service, parts and financing 1.
- Local-density strategy and operational efficiency, supported by standardized processes and technology investment 1.
- The parts and service business is described as a stable, counter-cyclical source of cash flow 1.
Weaknesses
Opportunities
Risks
- Demand sensitive to economy and credithigh
Vehicle sales depend on consumer confidence, credit costs and inflation, and a recession could sharply reduce sales 1.
- Dependence on manufacturershigh
Changes in manufacturer policy or reduced incentives could affect dealer volumes and profitability 1.
- UK exposuremedium
Economic difficulties and the motor finance review could lead to further impairments of goodwill and franchise rights 1.
- Cost of debt and credit ratingmedium
A rating below investment grade and SOFR-linked borrowing could raise financing costs and limit market access 1.
- Supply chains and tariffsmedium
Production disruptions, aluminum plant fires at suppliers and new duties could reduce vehicle availability and parts supply 12.
Investment thesis
What would need to be true (bull case)
- If the acquisition integration succeeds and cost savings materialize, margins could rise even in a difficult economy 23.
- A stable parts and service business could offset volatility in new vehicle sales 1.
- Lower interest rates could support vehicle demand and financing, especially if affordability improves 1.
What would break the thesis
What to watch
- Completion of the Hennessy acquisition and effects on leverageQ4 2026
- Final FCA rules on motor finance redress2026
- Effect of the proposed Canadian duty and Section 232 tariffsQ3 2026
- Quarterly results on U.S. cost savings and marginsQ3 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 08 Sept 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (28 Oct 2026 · results).
The business
Group 1 Automotive, Inc. is a major operator in automotive retail, selling and leasing new and used cars and light trucks, arranging related financing, selling service and insurance contracts, providing maintenance and repair and selling parts both retail and wholesale 1. As of December 31, 2025, its network included 145 dealerships and 21 collision centers in the U.S. and 109 dealerships and 11 collision centers in the U.K., across 17 U.S. states and 62 UK towns and cities 1. As of September 8, 2026, it operated 249 dealerships, 310 franchises and 32 collision centers offering 37 brands 3.
The strategy rests on four pillars: local market focus, operational excellence, a differentiated parts and service business and disciplined capital allocation, including selective acquisitions and dispositions 1. The parts and service business is presented as a critical driver of profitability and a counter-cyclical complement to vehicle sales 1.
The company depends exclusively on vehicle manufacturers for new vehicle inventory, and franchise agreements and legal frameworks in the U.S. and U.K. shape much of its operations 1. Its debt securities are rated just below investment grade, which makes financing costs sensitive to capital markets 1.
Segments
Market context
The retail auto market is described as influenced by consumer confidence, credit costs, inflation, fuel prices and trade policy 1. In 2025 the Federal Reserve and the Bank of England cut interest rates, which the filing says may improve affordability, though the effect cannot be predicted with certainty 1.
Financing and service demand depend on credit conditions and household spending in the regions where the company operates 12. The Middle East conflict raised energy prices and complicated supply chains, which could affect demand 2.
Trends
- Tariffs and trade policyheadwind
Section 232 tariffs on vehicles and parts remain in force, while the Supreme Court invalidated IEEPA-based tariffs in February 2026; the administration could impose other duties, which adds uncertainty to vehicle costs 2. A proposed additional 50% duty on certain Canadian imports could have effects if it takes effect 2.
- Electric vehicles and emissions rulesmixed
Removal of federal EV tax credits and stricter UK standards could change the mix of vehicles sold 12. The proposed Euro 7 standard in the UK could raise costs if adopted 2.
- UK motor finance reviewheadwind
The FCA has proposed a redress scheme for customers affected by undisclosed commissions, with primary responsibility on lenders, though dealers could still face contractual recourse 1.
- Acquisitions and consolidationtailwind
The company plans to fund the Hennessy dealership asset acquisition with senior notes and revolver borrowings, and integration could bring density efficiencies in local markets 3.
Competitive position
Competition is intense across all business lines: other franchised dealers, auto brokers, leasing companies, online platforms and, for parts and service, regional chains and independent shops 1. The company has no cost advantage in buying new vehicles, as rivals access the same manufacturer terms 1.
Customer choice is driven by location, service, price, selection, online capabilities and reputation; in service, timeliness and technician competence matter 1. Direct-to-consumer EV sales by some manufacturers could reduce the role of traditional dealers 1.
- Other franchised dealers and multi-location operators
Direct competition for new and used sales in the same local markets 1.
- Online platforms and auto brokers
Compete through referrals and brokered sales, and direct EV sales by manufacturers could reduce dealer share 1.
- Regional and national service chains
Offer selected parts and services at prices potentially below the group's 1.
- Third-party financial institutions
Offer their own F&I products, which could reduce profits from F&I sales 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Group 1 Automotive (GPI): Can High Debt and a Troubled UK Acquisition Derail the Recovery?Yahoo Finance — News · 17 Sept 2026 · EN
The latest news item in our archive is from 17 Sept 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report29 Oct 2026
- Current report28 Oct 2026Results of operations · Financial statements and exhibits
- Current report21 Oct 2026Acquisition or disposition of assets · Financial statements and exhibits
- Current report24 Sept 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report22 Sept 2026Material agreement · Creation of a direct financial obligation · Other events · Financial statements and exhibits
- Current report22 Sept 2026Material agreement · Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report10 Sept 2026Material agreement · Other events · Financial statements and exhibits
- Current report08 Sept 2026Results of operations · Other events · Financial statements and exhibits
- Current report11 Aug 2026Departure or appointment of officers · Regulation FD disclosure · Other events · Financial statements and exhibits
- Quarterly report30 Jul 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Group 1 Automotive, Inc. · 13 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Group 1 Automotive, Inc. · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Group 1 Automotive, Inc. · 08 Sept 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.