GROUP 1 AUTOMOTIVE Reports Fourth Quarter Fiscal Year 2022 Earnings Results on January 25, 2023.
April 4, 2023
Earnings Overview
On January 25, 2023, GROUP 1 AUTOMOTIVE ($NYSE:GPI) revealed its earnings results for the fourth quarter of the fiscal year ending December 31, 2022. Year over year, total revenue rose by 80.5% to USD 157.2 million and net income increased 16.6% to USD 4069.0 million.
Transcripts Simplified
Group 1 Automotive reported adjusted net income from continuing operations of $158 million or $10.86 per diluted share in EPS for the fourth quarter, a 15% increase from the fourth quarter of the previous year. The US operations had 8,000 new vehicles in inventory, representing a 21-day supply. The company expects a gradual decline in new vehicle margins in 2023 with normalized margins settling above pre-pandemic levels. Used vehicle margins decreased to $1,350. The F& I business remained strong at $2,369 per unit with minimal sequential decline.
Aftersales experienced double-digit same store revenue growth and customer pay business grew 13%. Group 1 maintained cost discipline with a 61% adjusted SG& A as a percentage of gross profit, which was up only 1 percentage point from the prior year. AcceleRide generated a record 10,100 vehicles in the fourth quarter and 75% of customers used it in some way.
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 | 751.5 | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GPI. More…
| Operations | Investing | Financing |
| 585.9 | -484.6 | -67.3 |
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 |
| 6.72k | 4.48k | 157.58 |
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 |
| 2.7% | 30.6% | 10.1% |
Stock Price
The stock opened the day at $192.6 and closed at $197.1, up 2.1% from the previous closing price of $193.0. This was an impressive performance for the company, demonstrating its resilience in the face of a tumultuous economic climate over the past year. The earnings report highlighted several areas of growth and success for GROUP 1 AUTOMOTIVE as compared to its competitors. GROUP 1 AUTOMOTIVE also reported a decrease in its overall debt, with net debt decreasing by 8% over the past year.
Overall, GROUP 1 AUTOMOTIVE’s fourth quarter fiscal year 2022 earnings results painted a positive picture for the future of the company. Its strong performance has been rewarded by the stock market and is an indication of the company’s potential for continued success in the future. Live Quote…
Analysis
At GoodWhale, we conducted an analysis of GROUP 1 AUTOMOTIVE’s wellbeing. Our Risk Rating shows that GROUP 1 AUTOMOTIVE is a medium risk investment when considering both financial and business aspects. We detected 3 risk warnings in their income sheet, cashflow statement, and non financial. To find out more about our findings, visit goodwhale.com and register for access. With GoodWhale, you can rest assured that we are providing you with the best and most accurate information to help you make informed decisions. 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 has reported strong results for the fourth quarter of 2022, with total revenue increasing by 80.5% from the previous year and net income rising 16.6%. This is a positive sign for investors, demonstrating that the company is well-positioned to capitalize on growth opportunities in the automotive industry. With total revenue and net income continuing to grow, investors should remain optimistic about the future prospects of GROUP 1 AUTOMOTIVE.
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