Group Story

<div class='circular--portrait' style='background:#3b5998;color: #F0F8FF;font-size:4em;'>G1</div>
GPI -- USA Stock  

USD 84.38  0.55  0.66%

It seems as Group 1 will continue to recover much faster as its share price surged up 3.95% today. Group 1 Automotive's current daily volatility is 5.85 percent, with a beta of 2.27 and an alpha of 0.65 over DOW. As many millenniums are trying to avoid retail, it makes sense to concentrate on Group 1 Automotive a little further and try to understand its current market patterns. We will analyze why it could be a much better year for Group 1 shareholders.
Published over a month ago
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Should we continue shadow Group 1 (NYSE:GPI) executives?
Group 1 Automotive has roughly 19.2 M in cash with 287.1 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.1. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Group 1 has an asset utilization ratio of 271.34 percent. This implies that the company is making $2.71 for each dollar of assets. An increasing asset utilization means that Group 1 Automotive is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Group 1, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Group 1 along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Group 1's Liquidity

Group 1 financial leverage refers to using borrowed capital as a funding source to finance Group 1 Automotive ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Group 1 financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Group 1's total debt and its cash.

How Group utilizes its cash?

To perform a cash flow analysis of Group 1, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Group 1 is receiving and how much cash it distributes out in a given period. The Group 1 cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Group 1 Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 370.9 Million

Group 1 Correlation with Peers

Investors in Group can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Group 1 Automotive. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Group 1 and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Group is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Group for more details

Sale by Earl Hesterberg of 1400 shares of Group 1

Legal trades by Group 1 insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Group insider trading alert for sale of common stock by Earl Hesterberg, President & CEO, on 30th of August 2020. This event was filed by Group 1 Automotive Inc with SEC on 2020-02-21. Statement of changes in beneficial ownership - SEC Form 4. Earl Hesterberg currently serves as ceo and president executive director and member of fin./risk management committee of Group 1 Automotive [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Going after Group Financials

Group 1 appears to be very steady, given 1 month investment horizon. Group 1 Automotive holds Efficiency (Sharpe) Ratio of 0.17, which attests that the entity had 0.17% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By evaluating Group 1 Automotive technical indicators you can presently evaluate if the expected return of 0.97% is justified by implied risk. Please utilize Group 1 Downside Deviation of 5.79, risk adjusted performance of 0.2944, and Market Risk Adjusted Performance of 0.458 to validate if our risk estimates are consistent with your expectations.
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Our perspective of the current Group 1 rise

Group 1 current mean deviation boosts over 4.25. Group 1 Automotive exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Group 1 Automotive individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Group 1 future systematic risk.

Our Takeaway on Group 1 Investment

While other entities under the auto & truck dealerships industry are still a bit expensive, Group 1 may offer a potential longer-term growth to stockholders. To conclude, as of the 30th of July 2020, our research shows that Group 1 is a rather very steady investment opportunity with a below average probability of distress in the next two years. From a slightly different view, the entity currently appears to be fairly valued. Our primary 30 days 'Buy-Sell' recommendation on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Group 1 Automotive. Please refer to our Terms of Use for any information regarding our disclosure principles.

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