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$21.49 -0.45 (-2.05%)
8/28/2008 4:04 PM

Group 1 Automotive, Inc. (GPI)

CAPS Rating:
**

The Company is an operator in the automotive retail industry, which through its operating subsidiaries, markets and sells a range of automotive products and services.

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What the Community Thinks

Total Members

84 Outperforms
19 Underperforms
 

All-Stars

29 Outperforms
7 Underperforms
 

Wall Street

2 Outperforms
0 Underperforms
 

Members bullish on GPI are also bullish on:

Members bearish on GPI are also bearish on:

Ticker Tags

Small Cap (1922), Auto Dealerships (12)
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Group 1 Automotive, Inc. At A Glance

Current Price: $21.49
Last Trade Time: 8/28/2008 4:04 PM
Open: $21.99
Previous Close: $21.94
Daily Range: $21.42 - $22.14
52-Week Range: $14.53 - $39.95
Volume: 291,559
Market Cap: $510.54M
P/E Ratio: 8.01
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Stock Trends

GPI VS S&P 500 (SPY)

GPI 12 month chart vs. S&P

News & Discussion Boards

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Top Bull Pitch

Recs

1

Group 1 Automotive, Inc. (GPI)

Avatar PebbledsPicks (< 20) Submitted: 8/09/08 6:13 PM


S&P: 4-STARS; $26 12-month target; $28.50 fair value




Group 1 Automotive, a leading operator in the highly fragmented $1 trillion automotive retailing industry, follows a strategy that focuses on decentralized management, new technology initiatives, expansion of higher-margin busines...

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Top Bear Pitch

Recs

3

Group 1 Automotive, Inc. (GPI)

Avatar NetscribeRetail (51.90) Submitted: 5/22/07 9:14 AM




The important figures for auto sales are out with total vehicle sales for January down by 4.7% and a dip in daily selling rate by 8.5%. Despite this weakness Group 1 Automotive were able to improve their first-quarter total revenues by 7.4%, thanks to its recent dealership acquisition. ...More

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Recs

1

 (GPI)

Avatar PebbledsPicks (< 20) Submitted: 8/09/08 6:13 PM : Outperform Start Price: $22.53 GPI Score: -5.16


S&P: 4-STARS; $26 12-month target; $28.50 fair value




Group 1 Automotive, a leading operator in the highly fragmented $1 trillion automotive retailing industry, follows a strategy that focuses on decentralized management, new technology initiatives, expansion of higher-margin businesses, customer service, and centralization of certain administrative functions.




As of late February 2008, Group 1 owned and operated 104 automotive dealerships, 143 franchises, and 26 collision service centers in the U.S., and three dealerships, six franchises and two collision centers in the U.K. that offer 32 brands of automobiles.




Comments: Increased revenue from 1998 to 2006 yoy, each year, every year. Similar growth for net income, except for 2004, which must have suffered from a particularly large acquisition (guessing here, need to investigate). Good dividend: 2.3%. This is a "growth through gobble" company, and they appear very successful at that strategy. Brilliant fund managers Richard Fentin (Fidelity Value) and Joel Tillinghast (Fidelity Low Priced Stock) own large portions of GPI. Insiders were buying on the open market last year at higher prices. Fear seems to be dominating anything related to autos because of the dastardly recession. Trading for a ridiculous 9% of revenue.

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Recs

0

 (GPI)

Avatar TMFBuck (82.91) Submitted: 8/06/08 3:35 PM : Outperform Start Price: $21.12 GPI Score: 0.77

I'll take the long side of this one based on a low valuation and despite the poor economy there is a nice upside to this stock. Maintenance will carry the day until used car sales improve.





As long as people need to service and maintain their cars there will strong earnings. More sophisticated cars and extended warrantees will increase traffic to the dealers.

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Recs

0

 (GPI)

Avatar DaBajan (80.72) Submitted: 7/29/08 1:20 PM : Outperform Start Price: $20.23 GPI Score: 2.34

Good stable company. Well invested in its market. It can be hurt by the price of oil, however with that now dropping again, once we see consumer confidence return they will do well.

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Recs

1

 (GPI)

Avatar ResearchLover (96.07) Submitted: 6/14/08 11:11 AM : Outperform Start Price: $22.25 GPI Score: 1.07

In its peer group, this looks like the best value, in terms of PE (7.55) and earnings/mkt capitalization (>10%) Debt/equity is high and the rating has just been lowered, along with a downgrade on the stock by Wachovia. But I'll be a contrarian and expect it to outperform long term.





Eventually (2010 or later), the demand for cars in the US and UK should spike when people need to buy replacements, regardless of economic conditions. For comparison, look at Penske (PAG), not quite as beaten down, and triple the mkt cap. Which also brings up the point that this little fish may get eaten up if it did trend below $500M capitalization. Having put out the negatives/trash first, one more selling point is that they have a minor stake in 3 UK Mini dealerships, which if duplicated in the US to scale in principle (i.e. up their stake in dealership of fuel-efficient cars), should allow them to benefit maximally from the future uptick in car buying.





It sure would be nice to know what fraction of their US inventory value is locked up in SUVs. Anyone? That has to be dsicounted 30-50%, and would have to be due dilligence before putting money on the above otherwise safe assumptions...

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Recs

1

 (GPI)

Avatar edwardward (62.84) Submitted: 3/24/08 9:01 AM : Outperform Start Price: $25.04 GPI Score: -11.82

Sleeper Stock. Very profitable company. Selling well below its value. Will eventually come to the attention of fund managers. Look for the stock to double within 24 months.

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Wall Street

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picks per page. CHANGE Expand All Pitches

Top
Pick		Member NameMember RatingStart
Date		CallTime FrameStart
Price		Stock
Gain		S&P
Gain		ScorePitch
TrackHAndW 34.39 09/30/07 Outperform NS $33.02-34.92%-14.67%-20.25 Toggle the visibility of 60-Second Pitch and replies
TrackJPMorgan 90.55 04/04/07 Outperform NS $41.69-48.46%-9.40%-39.06

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