Group 1 Automotive, Inc. (NYSE:GPI) is one of the best transportation stocks to buy according to Wall Street analysts. On February 20, Group 1 Automotive, Inc. (NYSE:GPI) was upgraded to Overweight from Neutral by JPMorgan, with the firm keeping the price target the same at $370 and telling investors that it believes the company’s estimates “are now closer to reset.” It added that the stock’s de-rating has been more severe than warranted given Group 1’s “best-in-class execution”. Group 1 Automotive, Inc. ...

EMERGING TECH RESEARCH Healthtech Public Comp Sheet and Valuation Guide Q4 2025 Institutional Research Group Brian Wright Lead Research Analyst, Healthcare brian.wright@pitchbook.com pbinstitutionalresearch@pitchbook.com Published on February 2, 2026 | Contents | | | --- | --- | | Key takeaways | 2 | | Stock returns | 4 | | Revenue | 5 | | EBITDA | 7 | PitchBook clients can access the full Excel data pack for this report via the Research Center on the PitchBook Platform. Disclaimer: Any -0 values are negati ...

Core Insights - Group 1 Automotive, Inc. (NYSE:GPI) is recognized as one of the best used-car stocks to buy, with hedge funds showing interest in the company [1] Financial Performance - The company reported a revenue increase of 0.6% in Q4, reaching $5.6 billion, while full-year revenue grew by 13.2% to $22.6 billion, achieving record revenue across all major business lines [2] - Net income from continuing operations decreased to $524.5 million from $530.6 million the previous year, with diluted earnings per share from continuing operations at $25.13, down from $36.72 [3] Business Operations - Group 1 Automotive strengthened its operations by successfully integrating dealership operations, which are projected to contribute approximately $640 million in annual revenues [4] - The company is undergoing a UK-wide restructuring plan aimed at workforce realignment and the strategic closure of certain facilities [4] Company Overview - Group 1 Automotive operates 259 dealerships and 39 collision centers across the U.S. and the U.K., engaging in the sale of new and used cars, vehicle financing, insurance, service contracts, and maintenance and repair services [5]

Core Insights - The company reported Q4 net sales of $2.1 billion, a slight increase of 0.4% year over year, while full-year 2025 net sales were $8.6 billion, down 2.2% year over year [1] - Q4 net income was $71 million, a decrease from $138 million in Q4 2024, and full-year 2025 net income was $444 million, down from $658 million in 2024 [1] Financial Performance - Q4 net sales: $2.1 billion, up 0.4% year over year [1] - Full-year 2025 net sales: $8.6 billion, down 2.2% year over year [1] - Q4 net income: $71 million, compared to $138 million in Q4 2024 [1] - Full-year 2025 net income: $444 million, compared to $658 million in 2024 [1] Market Trends - The external environment is challenging, with overcapacity in bleached paperboard markets affecting finished packaging [1] - Consumer demand for staples is uneven due to affordability issues and macroeconomic uncertainty [1] - Customers are reviewing pack-price architecture, opting for smaller portions and lower consumer prices [1] Organizational Review - A 90-day review of organizational structure and business operations was initiated to drive performance and profitability [1] - The goal is to simplify the organization, improve execution, and eliminate inefficiencies [1] - The review is crucial due to changing consumer dynamics and evolving consumption patterns [1] Transformation Initiatives - The company aims to reduce leverage and generate greater free cash flow through upcoming reorganization [1] - A transformation office and chief transformation officer position have been established to enhance productivity and identify cost savings [2] Inventory Management - The company plans to significantly reduce inventory, targeting approximately $260 million worth of paperboard and finished goods inventory in 2026 [1] - Production was curtailed in Q4 to manage inventory, impacting the first half of the current year [1] Innovation Plans - The company is focused on accelerating the commercialization of new products, particularly in substrate switches from plastic to fiber [1] - There is a growing momentum in private label innovation, even in traditionally insulated categories [1] - Extensive deployment of AI tools is part of the transformation and innovation strategy [2] Waco Facility Update - Startup costs for the new recycled paperboard mill in Waco, Texas, were approximately $40 million in 2025, below expectations [2] - Increased capital expenditure projections for Waco were raised from $700 million to $850 million due to higher construction costs, with actual spend reaching $935 million [2] - A review of the root causes for the higher costs is underway, with corrective actions planned [2] Outlook - For 2026, the company targets adjusted free cash flow of $700 million to $800 million and net sales of $8.4 billion to $8.6 billion [2] - The company is assessing the impact of January's winter storm, with initial estimates of $20 million to $30 million in negative effects [2]

Core Insights - Group 1 Automotive reported record full-year revenues of $22.6 billion for 2025, marking a 13.2% increase over 2024, despite pressure on new-car margins [1] Financial Performance - Record revenues were achieved across all business lines, particularly in Parts & Service and Finance & Insurance [1] - U.S. operations sold 40,500 new vehicles at retail in Q4 2025, a decrease of 4.2% from the same quarter in 2024, while total new vehicle sales for the year reached 157,790, an increase of 2.8% [3] - Average new-car gross profit per vehicle sold in U.S. operations decreased by 12.7% year-over-year to $3,181 in Q4, and for the full year, it was down 7.9% to $3,371 [4] Operational Efficiency - The company reported a 10-point decrease in technician turnover, contributing to increased productivity [2] - A project to air-condition service departments nationwide has aided in technician retention [2] - U.S. technician headcount increased by 2.3% in 2025, while customer-pay work rose by 5% and warranty work increased by 11% in Q4 [6] Parts and Service Revenue - U.S. parts and service revenue for Q4 was $525.5 million, a 2.9% increase from Q4 2024, and for the full year, it reached $2.1 billion, up 7.1% from 2024 [5] - The increase in parts and service results was greater than the net increase in technician headcount [6] Future Outlook - Group 1 anticipates further improvements in Fixed Operations and Finance & Insurance for 2026, along with growth in the used-vehicle business [3]

Core Insights - Group 1 Automotive reported strong fourth-quarter performance with record revenue and gross profits, despite a decline in new vehicle sales and increasing consumer concerns about affordability [1][4][3] Financial Performance - Fourth-quarter 2025 revenue reached $5.6 billion with a gross profit of $874 million, and adjusted net income from continuing operations was $105 million, resulting in an adjusted diluted EPS of $8.49 [2] - For the full year, the company achieved a gross profit exceeding $3.6 billion, including nearly $1.6 billion from parts and service, and sold a record 459,000 vehicles [3][7] Business Segments - The company experienced record gross profits in parts and service and finance and insurance (F&I), showcasing the strength of its diversified business model [3][4] - Used vehicle operations maintained flat volumes year-over-year, with revenues increasing by approximately 4% as reported and 1% on a same-store basis, although same-store used vehicle gross profit per unit declined by about 8% [7][8] Cost Management and Efficiency - Adjusted SG&A as a percentage of gross profit rose by 200 basis points sequentially to 67.8%, primarily due to higher employee expenses, with a focus on resource management and technology investments [9] - The company is deploying AI and virtual F&I tools to enhance technician and F&I productivity [5][20] U.K. Operations and Restructuring - In the U.K., the company cut 537 roles and completed systems integrations while pursuing further portfolio actions, including a potential exit from the JLR brand [6][11] - Same-store new vehicle volumes in the U.K. declined by 8.2%, while used vehicle same-store revenue rose over 9% in local currency [13][14] Capital Allocation and Shareholder Returns - Group 1 repurchased $555 million of stock in 2025 and paid $26 million in dividends, with an additional $28.3 million in stock repurchases post-quarter [19] - The company disposed of 13 dealerships generating about $775 million in annualized revenue, primarily driven by underperforming U.K. stores [17] Future Outlook - Management remains focused on organic growth opportunities, particularly in the U.K., and anticipates increased lease returns as a source of premium used supply later in the year [22][23]

Core Insights - Group 1 Automotive, Inc. (NYSE:GPI) is recognized as one of the best consumer cyclical stocks, operating 259 dealerships in the US and UK, with 146 located in the US [1] Analyst Recommendations - As of November 28th, there are 10 analyst recommendations for Group 1 Automotive, with 2 Strong Buy, 4 Buy, and 4 Hold ratings, and an average share price target of $469.11 [2] - Barclays set an Overweight rating on GPI with a price target of $510, highlighting that GPI is trading at a P/E ratio below its historical average and that of its peers [3] Financial Performance - In the fiscal third quarter, Group 1 Automotive reported an EPS of $10.45, which was below analyst estimates of $10.81 [4] - Analysts raised concerns regarding the decline in US luxury car sales, the exit from UK Jaguar Land Rover dealerships, and potential partnerships with Chinese brands [4] Management Response - Management acknowledged an inventory buildup for luxury US cars in Q3 but expects clarity in Q4 [5] - Discussions are ongoing regarding partnerships with Chinese brands, with decisions to be made based on shareholder interests [5]

Group 1 - Group 1 operates extensively across the U.S., with a strong presence in the Northeast, Southeast, Texas, and California, and is the 1 auto retailer in Texas [1] - The company has 324 new vehicle franchises and 259 franchised new vehicle dealerships, generating $19.9 billion in revenue last year [3] - Group 1 is a leader in the aftermarket sales segment, successfully adapting to the complexities of modern vehicles, including electric vehicles [2] Group 2 - The U.S. auto dealer market is valued at approximately $2.95 trillion and is projected to reach $3.68 trillion by 2030, reflecting a CAGR of about 4.5% [6] - The demand for personal vehicles remains strong, supporting a steadily expanding automotive dealership industry [7] Group 3 - In Q3 2025, Group 1 reported record revenues of $5.8 billion, a 10% year-over-year increase, and a non-GAAP EPS of $10.45, up 5.6% year-over-year [9] - Analyst Babcock sees Group 1 as having significant growth potential, trading at 8.8x forward P/E, below the dealer average, with a price target of $510, suggesting a 30% gain [10] Group 4 - Lithia Motors, another major player, has 450 dealer locations and reported Q3 revenue of $9.7 billion, up 5% year-over-year [14] - Lithia's strategic goal includes expanding luxury car services, recently acquiring two luxury dealerships generating $450 million in annual revenue [13] Group 5 - AutoNation operates 323 dealer locations and reported Q3 revenue of $7.01 billion, a 7% year-over-year increase [19] - Analyst Babcock highlights AutoNation's consistent operating performance and favorable valuation, setting a price target of $250, indicating a 27% potential gain [20]

Group 1: ADP - The board of directors of ADP approved a $0.16 increase in the quarterly cash dividend to an annual rate of $6.80 per share, marking the 51st consecutive year of dividend increases [1] - The 10% increase in the dividend reflects the Board's confidence in ADP's financial strength [1] - The new quarterly dividend rate of $1.70 per share will be distributed on January 1, 2026, to shareholders of record on December 12, 2025 [1] Group 2: Agree Realty - Agree Realty announced a monthly cash dividend of $0.262 per common share, reflecting an annualized dividend amount of $3.144 per common share [2] - This represents a 3.6% increase over the annualized dividend amount of $3.036 per common share from the fourth quarter of 2024 [2] - The dividend is payable on December 12, 2025, to stockholders of record at the close of business on November 28, 2025 [2] Group 3: Group 1 Automotive - Group 1 Automotive's board declared a $0.50 dividend per share, payable on December 15, 2025 [3] - This dividend is consistent with a previously announced increase of 6% in its annualized dividend rate from $1.88 per share in 2024 to $2.00 per share in 2025 [3] Group 4: Quest Diagnostics - Quest Diagnostics declared a quarterly cash dividend of $0.80 per share, payable on January 28, 2026 [4] - The dividend will be distributed to shareholders of record on January 13, 2026 [4] Group 5: Aflac - Aflac announced a first quarter dividend of $0.61 per share, payable on March 2, 2026 [5] - This represents a 5.2% increase over the previously declared fourth quarter 2025 dividend [5]

Group 1 - Barclays analyst John Babcock indicates investment opportunities in the automotive dealership sector due to expected profit growth in fiscal year 2026 and a recent decline in valuations [1] - The automotive retail industry is rated as "neutral," but certain companies show potential for above-average performance due to strong growth trends and resilience in adverse economic cycles [1] - Demand for used cars in the U.S. is weak, and auto credit data shows a decrease in demand in the subprime market [1] Group 2 - Companies rated "buy" include Carvana (CVNA.US) for its investment in optimizing online purchasing experience, while CarMax (KMX.US) is rated "sell" due to inconsistent operational performance and potential higher-than-expected loan loss reserves [1] - In the new and used car dealership segment, companies rated "buy" include AutoNation (AN.US), Group 1 Automotive (GPI.US), Lithia Motors (LAD.US), and Penske Automotive (PAG.US) based on strong same-store sales growth and stable operational performance [2] - Asbury Automotive (ABG.US) and Sonic Automotive (SAH.US) are rated "hold" [2]