- The stock has rebounded sharply, up 20% year-to-date, and is now trading near its all-time highs.
- Recently reported third-quarter sales were down just 3% compared to its prior-year period, highlighting a steep recovery in vehicle sales and services.
- Historically, the company has return cash to shareholders to the tune of 4% via dividends and buybacks.
- The company has grown EPS and book value at a 10-year CAGR of 14% and 8% respectively, yet its P/E multiple has contracted from an average of 14x in 2010 to 7.3x in 2019.
- GPI currently trades at a forward P/E of 7x. At just 10x earnings, we could be looking at a share price of $174.
For further details see:
Auto Dealership Group 1 Automotive Is A Candidate For Good Returns