Yesterday, the automotive products and services company began a tender offer to pay cash for any and all of its outstanding 3% Convertible Senior Notes due 2020.
TheStreet Ratings team rates GROUP 1 AUTOMOTIVE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GROUP 1 AUTOMOTIVE INC (GPI) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.9%. Since the same quarter one year prior, revenues rose by 15.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- GROUP 1 AUTOMOTIVE INC has improved earnings per share by 35.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GROUP 1 AUTOMOTIVE INC increased its bottom line by earning $4.31 versus $4.19 in the prior year. This year, the market expects an improvement in earnings ($5.69 versus $4.31).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Specialty Retail industry average. The net income increased by 41.5% when compared to the same quarter one year prior, rising from $22.12 million to $31.30 million.
- You can view the full analysis from the report here: GPI Ratings Report