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Here's How Much You'd Have If You Invested $1000 in Group 1 Automotive a Decade Ago
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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 factor that can influence investors is FOMO, or the fear of missing out, especially with 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 and the UK. As of Dec 31, 2021, the company's retail network consisted of 147 and 55 dealerships in the United States and the U.K., 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 2021, New Vehicle represented 48%; Used Vehicle contributed 36%; Service and Parts accounted for 12%; and Finance & Insurance represented 4% to the company’s total revenues.
In November, Group 1 announced the divestment plans of its Brazilian operations. Until the closure of its Brazilian operations, which is scheduled in the second quarter of 2022, operating results from the same will be reported as discontinued operations and excluded from continuing operations. Group 1 will, henceforth, not report Brazil as a separate segment and will only report the U.S. and U.K. segments.
Thus, the company currently operates through two reportable segments — the United States and the United Kingdom. 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, Maine, Oklahoma, South Carolina and Texas.
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.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Group 1 Automotive ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2012 would be worth $3,534.49, or a 253.45% gain, as of August 25, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 193.44% and the price of gold went up 0.79% over the same time frame.
Analysts are anticipating more upside for GPI.
Group 1’s diversified product mix along with omnichannel efforts bode well. It is riding on the strength of consumer demand in the US and UK and order backlog in the UK is likely to fuel pent-up demand and aid GPI’s performance in 2023. Acquisitions of dealerships and franchises to expand and optimize its portfolio are major tailwinds. In 2021, the auto retailer completed transactions representing $2.5 billion of acquired revenues. Buyouts of Toyota dealership and others in the quarter are likely to aid its top-line. AcceleRide platform, its online retailing initiative, aids Group 1’s long-term prospects and used-vehicle inventory. But, tight inventory of new vehicles led by parts shortage may dampen results. High debt levels and SG&A costs are other concerns. As such, Group 1 is viewed as a risky bet for the time being.
Over the past four weeks, shares have rallied 8.81%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Group 1 Automotive a Decade Ago
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 factor that can influence investors is FOMO, or the fear of missing out, especially with 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 and the UK. As of Dec 31, 2021, the company's retail network consisted of 147 and 55 dealerships in the United States and the U.K., 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 2021, New Vehicle represented 48%; Used Vehicle contributed 36%; Service and Parts accounted for 12%; and Finance & Insurance represented 4% to the company’s total revenues.
In November, Group 1 announced the divestment plans of its Brazilian operations. Until the closure of its Brazilian operations, which is scheduled in the second quarter of 2022, operating results from the same will be reported as discontinued operations and excluded from continuing operations. Group 1 will, henceforth, not report Brazil as a separate segment and will only report the U.S. and U.K. segments.
Thus, the company currently operates through two reportable segments — the United States and the United Kingdom. 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, Maine, Oklahoma, South Carolina and Texas.
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.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Group 1 Automotive ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2012 would be worth $3,534.49, or a 253.45% gain, as of August 25, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 193.44% and the price of gold went up 0.79% over the same time frame.
Analysts are anticipating more upside for GPI.
Group 1’s diversified product mix along with omnichannel efforts bode well. It is riding on the strength of consumer demand in the US and UK and order backlog in the UK is likely to fuel pent-up demand and aid GPI’s performance in 2023. Acquisitions of dealerships and franchises to expand and optimize its portfolio are major tailwinds. In 2021, the auto retailer completed transactions representing $2.5 billion of acquired revenues. Buyouts of Toyota dealership and others in the quarter are likely to aid its top-line. AcceleRide platform, its online retailing initiative, aids Group 1’s long-term prospects and used-vehicle inventory. But, tight inventory of new vehicles led by parts shortage may dampen results. High debt levels and SG&A costs are other concerns. As such, Group 1 is viewed as a risky bet for the time being.
Over the past four weeks, shares have rallied 8.81%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.