Eminence Capital LP Reduces Investment in Group 1 Automotive,
March 7, 2023
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Recently, Eminence Capital LP has decreased its shareholding in Group 1 Automotive ($NYSE:GPI), Inc. The firm has sold off over one million of its shares in Group 1 Automotive, Inc in the past few weeks. This marks a decrease in ownership for Eminence Capital LP, which was previously the largest shareholder in the automotive retailer. Group 1 Automotive, Inc is a leading automotive retailer in the United States and its shares have been trading at a relatively high rate in recent weeks. The company has been actively engaged in expansion and diversification of its operations to include used vehicle sales and commercial fleet services in addition to its traditional new vehicle dealer locations. This decision by Eminence Capital LP could be attributed to the current state of the automotive industry which is facing numerous headwinds due to the pandemic. It is likely that the firm has decided to exit its position in Group 1 Automotive, Inc due to its uncertain outlook and the potential for further losses.
However, despite this setback, Group 1 Automotive, Inc remains confident in its ability to succeed in the coming years. The company has shown resilience in the face of the various challenges and continues to pursue growth opportunities in order to remain competitive. It is likely that Group 1 Automotive, Inc will continue to remain a key part of the automotive industry going forward.
Market Price
However, on Friday the stock opened at $231.0 and closed at $232.4, up 1.1% from the previous closing price of $229.8. This could indicate that investors are still confident in the company despite the reduced investment from Eminence Capital. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GPI. More…
| Total Revenues | Net Income | Net Margin |
| 16.22k | 730.3 | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GPI. More…
| Operations | Investing | Financing |
| 675.5 | -1.25k | -74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GPI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.25k | 4.04k | 155.93 |
Key Ratios Snapshot
Some of the financial key ratios for GPI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.4% | 41.5% | 6.7% |
| FCF Margin | ROE | ROA |
| 3.2% | 30.8% | 10.9% |
Analysis
At GoodWhale, we performed a range of analysis on GROUP 1 AUTOMOTIVE’s wellbeing and financial health. Upon review, we assigned them a Risk Rating of medium. This indicates that their financial and business aspects may pose a certain level of risk for potential investors. In terms of financials, we detected three risk warnings in their income sheet, cashflow statement and non-financial elements. To get a detailed overview of our findings, please register with us to view our analysis. By doing so, investors will have the chance to understand the exact level of risk associated with this company before they make an investment. More…
Peers
Group 1 Automotive Inc is an American automotive retailer. The company sells, services, and finances vehicles through its dealerships in the United States, the United Kingdom, and Brazil. Group 1 Automotive Inc also owns and operates collision centers, parts stores, and auto auctions. The company was founded in 1995 and is headquartered in Houston, Texas. Penske Automotive Group Inc is an American automotive retailer. The company sells, services, and finances vehicles through its dealerships in the United States, the United Kingdom, and Australia. Penske Automotive Group Inc also owns and operates collision centers, parts stores, and auto auctions. The company was founded in 1999 and is headquartered in Bloomfield Hills, Michigan. AutoNation Inc is an American automotive retailer. The company sells, services, and finances vehicles through its dealerships in the United States. AutoNation Inc also owns and operates collision centers, parts stores, and auto auctions. The company was founded in 1996 and is headquartered in Fort Lauderdale, Florida. Murphy USA Inc is an American oil and gas company. The company owns and operates gas stations and convenience stores in the United States. Murphy USA Inc also owns and operates a refinery. The company was founded in 1996 and is headquartered in El Dorado, Arkansas.
– Penske Automotive Group Inc ($NYSE:PAG)
Penske Automotive Group Inc. is an international transportation services provider. The company operates in three segments: Retail Automotive, Retail Commercial Truck, and Other. The Retail Automotive segment sells new and used vehicles, and provides vehicle maintenance, warranty, paint and collision repair, and other services. The Retail Commercial Truck segment sells new and used trucks, and offers financing, leasing, and rental options. The Other segment provides financing, insurance, and fleet management services. Penske Automotive Group Inc. was founded in 1969 and is headquartered in Bloomfield Hills, Michigan.
– AutoNation Inc ($NYSE:AN)
AutoNation Inc is an American automotive retailer, and it is the largest in the United States by vehicle sales. The company also has a large market share in terms of service and parts sales. AutoNation Inc has a market cap of 5.26B as of 2022, a Return on Equity of 57.65%. The company has been in business since 1996 and is headquartered in Fort Lauderdale, Florida. AutoNation is a publicly-traded company on the New York Stock Exchange (NYSE: AN).
– Murphy USA Inc ($NYSE:MUSA)
Murphy USA Inc is a gas station and convenience store company. The company operates in the United States and Canada. Murphy USA Inc is headquartered in El Dorado, Arkansas. The company was founded in 1996.
Summary
Group 1 Automotive, Inc. is experiencing a decrease in investor confidence after Eminence Capital LP recently reduced their investment. Media sentiment towards the company has been largely negative. Despite the current market volatility, Group 1 Automotive, Inc. remains a profitable automotive retail company and provides investors with an interesting value opportunity. The company specializes in luxury, import and domestic automobile brands with a robust selection of new, used and certified pre-owned cars.
Furthermore, Group 1 Automotive has a strong financial position with a healthy balance sheet and low leverage. Although recent changes in investor sentiment may impede the stock price in the short term, the company is well-positioned to compete in the long term and presents an appealing opportunity for investors who are willing to take on moderate risk.
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