finance
Chr1stina
Group1Automotive.pptxChristina Williams
Fin/571 Corporate Finance
Joseph McDonald
3/23/2020
FINANCIAL ANALYSIS
The analysis of the key performance of 500 fortune company
The analysis will outline the financial performance
The company description
The applications in the financial analysis
Introduction
The aim of this study is to evaluate the key performance of a 500 fortune company, the analysis focus on analyzing the organization financial performance over the period; the cashflows of the operations, performance ratios, the stock and dividends yields and revenue growth for the last three years. The analysis will also provide the company descriptions as well as the applications of this financial analysis
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Group 1 Automotive, Inc.; NYSE: GPI
Sell used and new car and trucks
Performs auto maintenance and repairs
Offers auto financial and insurance
Ranked position 458 in 500 fortune list
Company’s description
Group 1 automotive Inc. (NYSE: GPI) deal with the new and used car and trucks, perform and maintenance and report repairs, and offers auto financing and offers auto financing and insurance services. Group 1 automotive Inc. is ranked position 458 in the 500 fortune list, thus this means that company is among the best performing automotive company in US
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Cash flow from operations
Cash flow in 2019
| Operations | Cashflow 2019 | Cashflow 2018 | Cashflow 2017 |
| Operating activities | $ 370.9 | $ 270 | $ 196.5 |
| Investment Activities | $ - 291 | $ - 168 | $ - 312.6 |
| Financial activates | $ -67 | $-109.5 | $ 121.5 |
| Net cash-flow | $ 9.3 | $ 10.9 | $ 5.4 |
| Stock based compensation | $ 18.8 | $ 18.7 | $18.9 |
| Common stock dividends | $ - 20.3 | $ -20.8 | $ 20.5 |
Group 1 Automotive Cash Flow Statement 2005-2020 | GPI. This statement analysis included the all the operations activities in the organization in the three year from 2017 to 2019.
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Current and historical p/e ratio
P/E Ratio calculation
Comparison of the p/e ratio
Growth rate and p/e
Debts and p/e
Verdict of Group 1automotive p/e
Price-to-earnings ratio
The current price-to-earning ratio of Group 1 automotive stands at 3.82 in this year. The lowest achieved p/e that has ever been recorded for the organization was 0.00 for year 2009. conversely, the highest p/e that was ever recorded for the company was 23.8 for the upper quarter upper of year 2008. P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Group 1 Automotive has a P/E of 3.82 that's below the average in the US market, which is 19.0
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Variation in the purchase of shares
Limited under the terms of the Revolving Credit Facility
$132.3 million in restricted payments
Dividends of $0.22, 0.3 and 0.91 per share
Stock dividends and the yield
The stock purchase program for the vary from time to time depending on the Board of director directives. However, the company stock operations are regulated by Revolving credit facility. For, in this the trade limit stood at 132.4 million for paying dividend. In 2019, the board of director approved for the quarterly dividends, in the first quarter the shareholders earned 0.22 per share, the second quarter they earned 0.3 and finally 0.91.
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Current earn per share
Trend over years
Comparison of the earning per share ratio
Earnings per share ratio
As per 31 December 2019, the earning per share ratio was 2.58. analyzing the trend as from 2006, the earning per share ratio in been changing from time to time. The highest earning per share ratio was 5.23 recorded in 2017 and the lowest and the lowest being – 2.54 recorded in 2008. comparing this analysis with other companies, Group 1 automotive has been doing better.
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Increase in the net income
Increase in diluted earnings per common share
Increase in the adjusted net income
Increase in the total revenue
Revenue estimates
From analyzing the revenue trend in the last three years, the company has recorded an improved growth in the net income, diluted earning per common share, income and total revenue. Thus, considering this trends, the revenue is expected to grow for the next few three year holding all other factors constants.
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In 2017
Total revenue $11.1billion
Gross profit $425.7 million
In 2018
Total revenue $11.6 billion
Gross profit $432.1 million
In 2019
Total revenue 12 billion
Gross profits $75.2 million
Revenue from the previous 3 years
In the last three financial year, Group 1 Automotive has recorded an improve growth in its revenue. In 2017, the total revenue for the company was $11.1 billion, gross profits of $ 425.7 million. In the following year in 2018, the company recorded a increase in the total revenue and gross profits, the total revenue recorded was 11.6 million and gross profit of $432.1 million. 2019, still the company recorded an increase in total revenue and gross profits, the total revenue was 12 billion whereas gross profit stood at $ 75.2.
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The market cap, 40.85 which 5.5% drop
Open, 41.41 dividend yield
High, 42.25 previous close
Low, 38.94 from 52 week high
Market cap is 738.25 M
P/E ratio 4.3
Market cap for the company
Stock price definition
Price to earning ratio
The relationship between the stock price and p/e
Relate the stock price to price-to-earnings ratio.
The P/E ratio is calculated by dividing a company's current stock price by its earnings per share (EPS). Thus, if the current stock earning per price share is high the ratio P/E ratio will be high.
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Market capitalization
Trends in stock price, dividend payout, and total stockholders’ equity
Analysis, determination and recommendations
Discussion
Market capitalization refers to the total dollar market value of a company's outstanding shares of stock; the market capitalization shoes the size of the company in terms of production or any other characteristics the investor may be interested about the company. Currently, the stock range, $38.71, in the 50 day range the average price stood at $ 32.39 and the 52 week range had average 26.26. The P/E ratio was 4.29, dividend yield 2.87%.
Based on this analysis, the organizations the organization is recording improved financial performance ranging from increase in profit and revenue. Thus I can recommend an investor to buy the share since there are higher chances of returns.
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Update, F. Amarin Reports Record Fourth Quarter and Full Year 2017 Financial Results and Provides Update on Operations.
Fuel Transfer Pumps and Meters - GPI. (2020). Retrieved 23 March 2020, from http://gpi.net/
Group 1 Automotive. (2020). Retrieved 23 March 2020, from https://fortune.com/fortune500/2019/group-1-automotive/
References
Group 1 Automotive, I. (2020). Group 1 Automotive Announces First Quarter 2019 Financial Results. Retrieved 23 March 2020, from https://www.prnewswire.com/news-releases/group-1-automotive-announces-first-quarter-2019-financial-results-300837943.html
