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Group 1 AutomotiveGPI -2.90%81 ROE % is 14.27% as of Jun. 2026, which is 26% below its 10-year median of 19.21. GuruFocus rates GPI with a GF Score™ of 81/100 and a GF Value™ of $426.08 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,305 Vehicles & Parts companies, Group 1 Automotive ranks better than 63.37% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Group 1 Automotive ROE % Related Terms
Group 1 Automotive ROE % Historical Data
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The historical data trend for Group 1 Automotive's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto & Truck Dealerships subindustry, Group 1 Automotive's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Group 1 Automotive ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Group 1 Automotive's ROE % distribution charts can be found below:
* The bar in red indicates where Group 1 Automotive's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Group 1 Automotive (GPI) has a ROE % of 14.27% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Group 1 Automotive and its competitors. This is 26% below median its historical median of 19.21. Over the past decade, Group 1 Automotive's ROE % has ranged from 9.82 to 36.99. According to the industry distribution chart, Group 1 Automotive ranks #478 out of 1305 companies in the Vehicles & Parts industry, placing it in the top 36.6%.
Is Group 1 Automotive's ROE % too high?
Group 1 Automotive's current ROE % of 14.27% is 26% below median its 10-year median of 19.21. Over the past 10 years, this metric has ranged from a low of 9.82 to a high of 36.99. The Vehicles & Parts industry median ROE % is 6.66. Group 1 Automotive's value of 14.27% is 114.3% above this industry median. Based on the distribution chart, Group 1 Automotive ranks #478 out of 1305 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Group 1 Automotive has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Group 1 Automotive's ROE % compare to OPLN and ABG?
According to the Vehicles & Parts industry distribution chart, Group 1 Automotive ranks #478 out of 1305 companies for ROE %. This puts Group 1 Automotive in the upper half of its industry. The industry median ROE % is 6.66. Group 1 Automotive's value of 14.27% is 114.3% above this benchmark. Historically, Group 1 Automotive's own ROE % has ranged from 9.82 to 36.99 over the past decade. While the company's 10-year median is 19.21 vs. the industry median of 6.66, Group 1 Automotive has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.66, based on 1,305 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Group 1 Automotive's current ROE % of 14.27% is 114.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Group 1 Automotive and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Group 1 Automotive's current ROE % is 14.27%, which is 26% below median its own 10-year median of 19.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Group 1 Automotive stock overvalued right now?
Based on GuruFocus' analysis, Group 1 Automotive (GPI) is currently considered Significantly Undervalued. The stock's GF Value™ is $426.08, compared to a current price of $277.60 — trading 34.8% below its estimated fair value. The current ROE % is 14.27%, which is 26% below median its 10-year median of 19.21 and 114.3% above the Vehicles & Parts industry median of 6.66. Group 1 Automotive's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Group 1 Automotive (GPI), the current ROE % is 14.27% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Group 1 Automotive (GPI) Overvalued in 2026?
Based on GuruFocus' analysis, Group 1 Automotive stock appears to be undervalued.
The current stock price of $277.60 is trading 34.8% below its estimated GF Value™ of $426.08.
GuruFocus considers Group 1 Automotive to be Significantly Undervalued.
Key valuation signals for GPI:
ROE %: 14.27% (26% below median its 10-year median of 19.21)
GF Value™: $426.08 vs. price of $277.60 (34.8% below fair value)
Industry Position: 114.3% above the Vehicles & Parts median (#478 of 1305)
No single metric tells the full story. See the GPI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Group 1 owns and operates 32 collision centers and 253 automotive dealerships in the US and the UK, offering 36 brands of automobiles altogether. Slightly over half of the stores are in the US with locations mostly in metropolitan areas in 17 states in the Northeast, Southeast, Midwest, and California. Texas alone contributed 31.6% of new-vehicle unit volume in 2025 and the UK 27.6%. Texas, Massachusetts, and California combined was 45.4%. Revenue in 2025 totaled $22.6 billion. The firm entered the UK in 2007 and has 110 stores there contributing about 26% of total revenue. Group 1 was founded in 1995 and is based in Houston.
81GF Score
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