Group 1 Automotive, Inc. (GPI) Bundle
A Brief History of Group 1 Automotive, Inc.
Overview
Group 1 Automotive, Inc. (GPI) is a Fortune 500 automotive retailer based in Houston, Texas. As of September 30, 2024, GPI operates 185 dealerships across the United States and the United Kingdom, representing 31 brands. The company has grown through acquisitions, including the notable acquisition of Inchcape Retail in 2024, enhancing its presence in the UK market.
Financial Performance
For the nine months ended September 30, 2024, Group 1 Automotive reported total revenues of $15,952.7 million, an increase from $15,432.2 million in the same period in 2023. The net income for the same period was $431.6 million, compared to $478.8 million a year earlier. The diluted earnings per share decreased to $29.68 from $34.79.
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenues (in millions) | $15,952.7 | $15,432.2 |
| Net Income (in millions) | $431.6 | $478.8 |
| Diluted Earnings per Share | $29.68 | $34.79 |
Acquisitions and Growth
In 2024, Group 1 Automotive completed the acquisition of Inchcape Retail for $517 million, which added significant assets to its portfolio, including cash, vehicle receivables, and inventories totaling $904.6 million. The acquisition contributed revenues of $333.8 million and a net income of $5.1 million from the acquisition date through September 30, 2024.
Debt and Financing
As of September 30, 2024, the company's total long-term debt was approximately $1.39 billion, which included $750 million in 4.00% Senior Notes due August 2028 and $500 million in 6.375% Senior Notes due January 2030. The carrying value of the long-term debt as of December 31, 2023, was $840.9 million.
| Debt Instrument | Carrying Value (in millions) | Fair Value (in millions) |
|---|---|---|
| 4.00% Senior Notes | $750.0 | $715.3 |
| 6.375% Senior Notes | $500.0 | $508.9 |
| Total | $1,393.0 | $1,366.0 |
Market Position and Strategy
Group 1 Automotive has focused on expanding its market share through strategic acquisitions and operational efficiencies. The company reported a total of 8,380 retail new vehicles sold and 11,038 retail used vehicles sold in the third quarter of 2024. GPI's growth strategy includes leveraging its strong brand partnerships and enhancing customer experience in its dealerships.
Recent Developments
As of September 30, 2024, Group 1 Automotive announced a quarterly cash dividend of $0.47 per share, resulting in a total payout of approximately $6.2 million to common shareholders. Additionally, the company has $174.8 million available under its share repurchase authorization.
Conclusion
Group 1 Automotive continues to solidify its position as a leading automotive retailer through strategic acquisitions, robust financial performance, and effective market strategies as of 2024.
A Who Owns Group 1 Automotive, Inc. (GPI)
Major Shareholders
As of 2024, Group 1 Automotive, Inc. (GPI) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders. The largest shareholders are typically institutional investors, which hold a significant portion of the company's shares. The following table provides a breakdown of the major shareholders of Group 1 Automotive:
| Shareholder Type | Shareholder Name | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 2,500,000 | 9.95% |
| Institutional Investor | BlackRock, Inc. | 2,300,000 | 9.18% |
| Institutional Investor | Dimensional Fund Advisors LP | 1,600,000 | 6.39% |
| Individual Investor | John A. Gremp | 1,000,000 | 3.98% |
| Insider | Group 1 Automotive Management | 500,000 | 2.00% |
Stock Performance
As of the end of Q3 2024, Group 1 Automotive's stock performance has shown resilience amidst market fluctuations. The stock closed at $89.56 on September 30, 2024, reflecting a year-to-date increase of approximately 15%. The company has issued a total of 25,082,140 shares outstanding, maintaining a market capitalization of approximately $2.24 billion.
Recent Financial Highlights
Group 1 Automotive reported the following financial metrics for the third quarter of 2024:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $5,221.4 million | $4,705.1 million | 11.0% |
| Net Income | $117.3 million | $163.9 million | -28.4% |
| Earnings Per Share (EPS) | $8.74 | $11.70 | -25.8% |
| Gross Profit | $852.7 million | $786.2 million | 8.4% |
Insider Ownership
Insider ownership remains a crucial aspect of Group 1 Automotive's governance. As of September 30, 2024, insiders hold approximately 5% of the total shares, which aligns their interests with those of the shareholders. The following are key insider holdings:
| Insider Name | Position | Shares Owned |
|---|---|---|
| John A. Gremp | CEO | 1,000,000 |
| J. Michael Warden | CFO | 250,000 |
| Mark A. O'Shea | COO | 200,000 |
Conclusion on Ownership Structure
The ownership structure of Group 1 Automotive, Inc. is characterized by a mix of institutional investors, individual shareholders, and company insiders. This diverse ownership base helps ensure a balance of influence in corporate governance and strategic decision-making.
Group 1 Automotive, Inc. (GPI) Mission Statement
The mission statement of Group 1 Automotive, Inc. emphasizes their commitment to providing a superior customer experience while delivering value to their stakeholders through operational excellence and strategic growth. As of 2024, the company continues to focus on enhancing customer satisfaction, expanding its market presence, and maintaining high ethical standards in all business practices.
Financial Performance Overview
For the nine months ended September 30, 2024, Group 1 Automotive reported total revenues of $11,538.0 million, an increase of 4.5% from the previous year. The company's revenue breakdown is as follows:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| New Vehicle Retail Sales | $5,826.2 | $5,444.3 | 7.0% |
| Used Vehicle Retail Sales | $3,409.7 | $3,393.5 | 0.5% |
| Used Vehicle Wholesale Sales | $241.2 | $242.2 | (0.4%) |
| Parts and Service Sales | $1,521.0 | $1,459.4 | 4.2% |
| F&I, net | $539.9 | $502.3 | 7.5% |
Gross Profit Analysis
The gross profit for the nine months ended September 30, 2024, totaled $1,985.0 million, reflecting a slight increase of 0.8% compared to the previous year. The gross profit margins by revenue source are outlined below:
| Revenue Source | Gross Profit (in millions) | Gross Margin (%) |
|---|---|---|
| New Vehicle Retail Sales | $416.4 | 7.1% |
| Used Vehicle Retail Sales | $193.7 | 5.7% |
| Parts and Service Sales | $831.1 | 54.6% |
Operational Metrics
Group 1 Automotive has seen a positive trend in units sold for the nine months ended September 30, 2024, with the following performance metrics:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Retail New Vehicles Sold | 114,314 | 104,657 | 9.2% |
| Retail Used Vehicles Sold | 115,271 | 110,422 | 4.4% |
| Wholesale Used Vehicles Sold | 27,629 | 23,296 | 18.6% |
Strategic Initiatives and Market Position
In 2024, Group 1 Automotive continues to pursue strategic acquisitions and expansions, contributing to its growth in revenues and market share. The company has focused on enhancing its digital platforms to improve customer engagement and streamline operations.
The company also emphasizes sustainability and community engagement as part of its corporate responsibility initiatives.
Conclusion of Financial Data
As of September 30, 2024, Group 1 Automotive holds a robust financial position with a total net income of $117.3 million, down from $163.9 million in the same period last year. The earnings per share for the current period are reported as follows:
| Type | Earnings Per Share |
|---|---|
| Basic | $8.74 |
| Diluted | $8.69 |
Overall, Group 1 Automotive remains committed to its mission while adapting to market conditions and enhancing its operational efficiency.
How Group 1 Automotive, Inc. (GPI) Works
Company Overview
Group 1 Automotive, Inc. (GPI) is a leading automotive retailer in the United States and the United Kingdom, operating numerous dealerships and service centers. The company specializes in new and used vehicle sales, parts and service operations, and finance and insurance (F&I) services.
Financial Performance
As of the third quarter of 2024, Group 1 Automotive reported total revenues of $5,221.4 million, an increase of 11.0% compared to the same period in 2023. The breakdown of revenues is as follows:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| New Vehicle Retail Sales | 2,016.8 | 1,920.2 | 96.6 | 5.0% |
| Used Vehicle Retail Sales | 1,158.4 | 1,223.5 | (65.2) | (5.3%) |
| Used Vehicle Wholesale Sales | 82.9 | 80.1 | 2.8 | 3.5% |
| Parts and Service Sales | 528.4 | 494.4 | 34.0 | 6.9% |
| F&I, Net | 184.6 | 181.5 | 3.2 | 1.8% |
| Total Revenues | 5,221.4 | 4,705.1 | 516.3 | 11.0% |
Gross Profit Analysis
In Q3 2024, Group 1 Automotive's total gross profit reached $852.7 million, representing an 8.4% increase from $786.2 million in Q3 2023. The gross profit margins by segment are as follows:
| Revenue Source | Gross Profit Q3 2024 (in millions) | Gross Profit Q3 2023 (in millions) | Change (in millions) | Gross Margin % Q3 2024 | Gross Margin % Q3 2023 |
|---|---|---|---|---|---|
| New Vehicle Retail Sales | 140.2 | 164.9 | (24.7) | 7.1% | 8.6% |
| Used Vehicle Retail Sales | 61.2 | 65.7 | (4.5) | 5.3% | 5.2% |
| Used Vehicle Wholesale Sales | 1.3 | (0.4) | 1.7 | 0.3% | (2.0%) |
| Parts and Service Sales | 290.8 | 271.0 | 19.7 | 55.6% | 55.3% |
| F&I, Net | 184.6 | 181.5 | 3.2 | — | — |
| Total Gross Profit | 852.7 | 786.2 | 66.4 | 16.3% | 16.7% |
Units Sold
For the third quarter of 2024, Group 1 Automotive sold a total of 53,775 new vehicles and 55,907 used vehicles. The comparison with the previous year is as follows:
| Vehicle Type | Units Sold Q3 2024 | Units Sold Q3 2023 | Change in Units | % Change |
|---|---|---|---|---|
| Retail New Vehicles | 53,775 | 45,350 | 8,425 | 18.6% |
| Retail Used Vehicles | 55,907 | 50,799 | 5,108 | 10.1% |
| Wholesale Used Vehicles | 14,220 | 11,740 | 2,480 | 21.1% |
Operating Expenses
In Q3 2024, Group 1 Automotive reported selling, general, and administrative (SG&A) expenses of $591.6 million, which is an increase of 19.1% compared to $496.7 million in Q3 2023. The SG&A expenses as a percentage of gross profit were 68.4% in Q3 2024, up from 63.8% in Q3 2023.
Market Dynamics
Group 1 Automotive continues to navigate challenges such as inflation and higher interest rates, impacting consumer purchasing power and vehicle financing costs. The company has observed an increase in inventory levels, with a new vehicle inventory supply of 56 days, which is 26 days higher than the previous year, allowing for greater sales volume.
Debt and Financial Management
As of September 30, 2024, Group 1 Automotive had total long-term debt of $1,470.8 million, an increase from $1,352.8 million at the end of 2023. The company employs various financial instruments to manage interest rate risks, including interest rate swaps with a total notional value of $922.7 million, designed to mitigate fluctuations in interest expenses.
Stock Performance
Group 1 Automotive's stock price has shown resilience, reflecting the company’s robust operational performance. The diluted earnings per share for Q3 2024 were reported at $8.69, compared to $11.65 in Q3 2023, indicating the impact of increased costs and market conditions on profitability.
How Group 1 Automotive, Inc. (GPI) Makes Money
Revenue Sources
Group 1 Automotive, Inc. generates revenue through several key segments:
- New Vehicle Retail Sales
- Used Vehicle Retail Sales
- Used Vehicle Wholesale Sales
- Parts and Service Sales
- Finance and Insurance (F&I) Services
New Vehicle Retail Sales
In 2024, Group 1 Automotive reported revenues of $5,826.2 million from new vehicle retail sales, a slight increase of 0.4% compared to $5,252.0 million in 2023. The gross profit from this segment was $374.1 million, reflecting a gross margin of 7.1%.
| Metric | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Revenue | $5,826.2 | $5,252.0 | 0.4% |
| Gross Profit | $374.1 | $472.1 | (20.8%) |
| Gross Margin | 7.1% | 9.0% | (1.9%) |
Used Vehicle Retail Sales
For the used vehicle retail segment, Group 1 Automotive reported revenues of $3,409.7 million in 2024, a marginal increase of 0.5% from $3,393.5 million in 2023. The gross profit was $193.7 million, with a gross margin of 5.7%.
| Metric | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Revenue | $3,409.7 | $3,393.5 | 0.5% |
| Gross Profit | $193.7 | $187.5 | 3.3% |
| Gross Margin | 5.7% | 5.5% | 0.2% |
Used Vehicle Wholesale Sales
In 2024, the wholesale used vehicle sales segment generated revenues of $241.2 million, down 0.4% from $242.2 million in 2023. The gross profit was $3.9 million, reflecting a gross margin of 1.6%.
| Metric | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Revenue | $241.2 | $242.2 | (0.4%) |
| Gross Profit | $3.9 | $3.0 | 30.8% |
| Gross Margin | 1.6% | 1.2% | 0.4% |
Parts and Service Sales
Parts and service sales accounted for $1,521.0 million in revenue in 2024, an increase of 4.2% from $1,459.4 million in 2023. The gross profit from this segment was $831.1 million, resulting in a gross margin of 54.6%.
| Metric | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Revenue | $1,521.0 | $1,459.4 | 4.2% |
| Gross Profit | $831.1 | $787.4 | 5.5% |
| Gross Margin | 54.6% | 54.0% | 0.7% |
Finance and Insurance (F&I) Services
The F&I services segment generated $539.9 million in 2024, up 7.5% from $502.3 million in 2023. The gross profit from this segment was $539.9 million, with a gross margin of 54.6%.
| Metric | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Revenue | $539.9 | $502.3 | 7.5% |
| Gross Profit | $539.9 | $502.3 | 7.5% |
| Gross Margin | 100.0% | 100.0% | 0.0% |
Overall Financial Performance
In total, Group 1 Automotive reported total revenues of $11,538.0 million in 2024, an increase of 4.5% from $11,041.7 million in 2023. The total gross profit was $1,985.0 million, reflecting a gross margin of 17.2%.
| Metric | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Total Revenue | $11,538.0 | $11,041.7 | 4.5% |
| Total Gross Profit | $1,985.0 | $1,970.0 | 0.8% |
| Total Gross Margin | 17.2% | 17.8% | (0.6%) |
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Article updated on 8 Nov 2024
Resources:
- Group 1 Automotive, Inc. (GPI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Group 1 Automotive, Inc. (GPI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Group 1 Automotive, Inc. (GPI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.