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Group 1 Automotive, Inc. is a leading operator in the automotive retail industry. We sell and/or lease new and used cars and light trucks; arrange related vehicle financing; sell service and insurance contracts; provide automotive maintenance and repair services; and sell vehicle parts retail and wholesale.
Operating margin is thin at 3.25%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 13.2%, still solid.
ROIC dropped from 12.70% to 8.96%, capital efficiency is deteriorating. Net debt of $4.25B represents 10.0x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$22.47B
▲ +13.2% YoY
Net Income (TTM)
$327M
▼ -34.7% YoY
Op. Margin
3.30%
▼ -1.3pp YoY
ROIC
9.20%
▼ -3.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$326M
▲ +24.4% YoY
Op. Cash Flow (TTM)
$628M
▲ +18.5% YoY
Net Debt
$3.33B
Cash & Equiv.
$42M
5Y CAGR: +16.3%
5Y CAGR: -9.6%
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