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If You Invested $1000 in Group 1 Automotive 10 Years Ago, This Is How Much You'd Have Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Group 1 Automotive (GPI - Free Report) ten years ago? It may not have been easy to hold on to GPI for all that time, but if you did, how much would your investment be worth today?
Group 1 Automotive's Business In-Depth
With that in mind, let's take a look at Group 1 Automotive's main business drivers.
Group 1 Automotive, Inc. is one of the leading automotive retailers in the world, with operations primarily located in the United States, UK and Brazil. As of Dec 31, 2020, the company's retail network consisted of 117, 50 and 17 dealerships in the United States, U.K. and Brazil, respectively. Through these dealerships, the firm sells new and used cars and light trucks. Apart from selling new and used vehicles, the company offers vehicle financing and insurance and service contracts. Further, it provides maintenance and repair services, along with sale of replacement parts and aftermarket automotive products.
The core brands of vehicles sold by Group 1 Automotive are Toyota/Lexus, BMW, Honda, Ford, Nissan, General Motors, Chrysler, Volkswagen/Audi/Porsche, Mercedes-Benz, Nissan, Jaguar and Hyundai.
In 2020, New Vehicle represented 51.4%; Used Vehicle Retail contributed 28.6%; Used Vehicle Wholesale represented 2.8%, Service and Parts accounted for 12.9%; and Finance & Insurance represented 4.3% to the company’s total revenues.
The company operates through three reportable segments — the United States, the United Kingdom and Brazil. Percentage of new vehicle retail units sold in the U.S., U.K. and Brazilian market stood at 72%, 22% and 6%, respectively.
In the United States, the major metropolitan areas in which the company has presence are — Alabama, California, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, Oklahoma, South Carolina and Texas.
Its operations in the U.K. is majorly located in 33 towns while in Brazil, it has significant presence in the states, including Sao Paulo, Parana, Mato Grosso do Sul and Santa Catarina.
The firm’s online retail platform, AcceleRide, which was deployed to all the U.S. dealerships in 2019, allows for a comprehensive shopping experience to the customers. The customer also has the ability to apply for financing and review and select F&I products as part of the online process. Last year, Group 1 rolled out AcceleRide to U.K. dealerships as well and expects to complete this by the second half of 2021.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Group 1 Automotive a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2011 would be worth $3,947.89, or a gain of 294.79%, as of July 15, 2021, and this return excludes dividends but includes price increases.
The S&P 500 rose 234.20% and the price of gold increased 10.21% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for GPI.
Shares of Group 1 have outperformed the industry over the past year. Being one of the leading automotive dealers in the world, Group 1 is poised for revenue and earnings growth. The firm's diversified product mix and multiple streams of income along with omnichannel efforts to boost sales bode well. Its digital efforts focused on online customer scheduling-appointment system are also enhancing customer experience. The AcceleRide platform, its online retailing initiative, active at all of the firm’s U.S. dealerships is likely to aid Group 1’s long-term prospects. Importantly, the company is optimally positioned for a rebound in the UK market. The firm’s cost-containment efforts are likely to aid margins. Given the tailwinds, the stock is set to continue its momentum and is thus viewed as a lucrative bet at the moment.
The stock is up 7.72% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2021. The consensus estimate has moved up as well.
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If You Invested $1000 in Group 1 Automotive 10 Years Ago, This Is How Much You'd Have Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Group 1 Automotive (GPI - Free Report) ten years ago? It may not have been easy to hold on to GPI for all that time, but if you did, how much would your investment be worth today?
Group 1 Automotive's Business In-Depth
With that in mind, let's take a look at Group 1 Automotive's main business drivers.
Group 1 Automotive, Inc. is one of the leading automotive retailers in the world, with operations primarily located in the United States, UK and Brazil. As of Dec 31, 2020, the company's retail network consisted of 117, 50 and 17 dealerships in the United States, U.K. and Brazil, respectively. Through these dealerships, the firm sells new and used cars and light trucks. Apart from selling new and used vehicles, the company offers vehicle financing and insurance and service contracts. Further, it provides maintenance and repair services, along with sale of replacement parts and aftermarket automotive products.
The core brands of vehicles sold by Group 1 Automotive are Toyota/Lexus, BMW, Honda, Ford, Nissan, General Motors, Chrysler, Volkswagen/Audi/Porsche, Mercedes-Benz, Nissan, Jaguar and Hyundai.
In 2020, New Vehicle represented 51.4%; Used Vehicle Retail contributed 28.6%; Used Vehicle Wholesale represented 2.8%, Service and Parts accounted for 12.9%; and Finance & Insurance represented 4.3% to the company’s total revenues.
The company operates through three reportable segments — the United States, the United Kingdom and Brazil. Percentage of new vehicle retail units sold in the U.S., U.K. and Brazilian market stood at 72%, 22% and 6%, respectively.
In the United States, the major metropolitan areas in which the company has presence are — Alabama, California, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, Oklahoma, South Carolina and Texas.
Its operations in the U.K. is majorly located in 33 towns while in Brazil, it has significant presence in the states, including Sao Paulo, Parana, Mato Grosso do Sul and Santa Catarina.
The firm’s online retail platform, AcceleRide, which was deployed to all the U.S. dealerships in 2019, allows for a comprehensive shopping experience to the customers. The customer also has the ability to apply for financing and review and select F&I products as part of the online process. Last year, Group 1 rolled out AcceleRide to U.K. dealerships as well and expects to complete this by the second half of 2021.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Group 1 Automotive a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2011 would be worth $3,947.89, or a gain of 294.79%, as of July 15, 2021, and this return excludes dividends but includes price increases.
The S&P 500 rose 234.20% and the price of gold increased 10.21% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for GPI.
Shares of Group 1 have outperformed the industry over the past year. Being one of the leading automotive dealers in the world, Group 1 is poised for revenue and earnings growth. The firm's diversified product mix and multiple streams of income along with omnichannel efforts to boost sales bode well. Its digital efforts focused on online customer scheduling-appointment system are also enhancing customer experience. The AcceleRide platform, its online retailing initiative, active at all of the firm’s U.S. dealerships is likely to aid Group 1’s long-term prospects. Importantly, the company is optimally positioned for a rebound in the UK market. The firm’s cost-containment efforts are likely to aid margins. Given the tailwinds, the stock is set to continue its momentum and is thus viewed as a lucrative bet at the moment.
The stock is up 7.72% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2021. The consensus estimate has moved up as well.