Latest news with #Group1Automotive
Yahoo
17 hours ago
- Automotive
- Yahoo
Will Carvana Continue to Build on Its Cash Flow Strength in 2025?
Carvana's CVNA primary sources of operating cash flows are derived from the sale of retail vehicles, wholesale vehicles, originated loans and complementary products, including vehicle service contracts, GAP waiver coverage and other related offerings. The main uses of cash in operating activities include inventory purchases, personnel-related expenses and customer acquisition costs. For the years ended Dec. 31, 2024 and 2023, Carvana generated $918 million and $803 million in cash from operating activities, respectively. The $115 million year-over-year increase was largely driven by improved operating performance and a $274 million reduction in interest paid, attributed to higher paid-in-kind (PIK) interest on the Senior Secured Notes in 2024. PIK allows companies to conserve cash in the near term and is commonly utilized by rapidly growing 2024, Carvana's operating performance strengthened due to higher unit sales and record annual revenues, leading to significant profitability milestones. The used car retailer reported an all-time high net income, adjusted EBITDA and GAAP operating income. Carvana anticipates sequential growth in both retail units sold and adjusted EBITDA in the second quarter, projecting new all-time company records for both measures. Expected improvement in the company's operating performance will continue to drive its operating cash addition to operating cash flows, Carvana generates cash through financing activities, including short-term revolving inventory and finance receivable facilities, real estate and equipment financing, debt issuances and equity offerings. Historically, these financing activities have supported the company's growth, market expansion and strategic initiatives and this trend is expected to continue. Cash provided by and used in financing activities totaled $261 million in 2024 and $868 million in 2023. CVNA carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Cash Flow Performance of CVNA's Competitors In 2024, Group 1 Automotive, Inc. GPI reported a $396.1 million increase in net cash provided by operating activities compared to the prior year. However, on an adjusted basis, Group 1's operating cash flow declined $36.9 million due to a $103.5 million drop in net income and a $440.1 million reduction in floorplan notes Motors, Inc. LAD reported a $897.5 million year-over-year rise in operating cash flow in 2024, driven by its maturing financing receivables portfolio and lower inventory levels at more established locations. Lithia's current free cash flow deployment strategy allocates 35-45% toward acquisitions, 25% toward capital expenditures, innovation and diversification and 30-40% toward shareholder returns through dividends and share repurchases. Carvana's Price Performance, Valuation and Estimates Carvana has outperformed the Zacks Internet – Commerce industry year to date. CVNA shares have surged 65.4% compared with the industry's growth of 11.4%. YTD Price Performance Image Source: Zacks Investment Research From a valuation perspective, Carvana appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.46, higher than its industry's 2.17. Image Source: Zacks Investment Research EPS Estimates Revision The Zacks Consensus Estimate for 2025 and 2026 EPS has moved up 5 cents and 8 cents, respectively, in the past seven days. Image Source: Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
The Irish Sun
4 days ago
- Automotive
- The Irish Sun
Major car dealership group with more than 100 UK sites ‘threatens job losses' as firm blames Reeves' tax raids
A MAJOR car dealer giant with over 100 UK sites is planning job cuts despite reporting hefty profits. Group 1 Automotive will 'streamline' operations by cutting costs and axing duplicate roles. Advertisement 2 Group 1 Automotive UK has been restructuring its business since August last year Credit: Alamy The dealership doubled its gross profit in the first half of 2025, with sales soaring 94% - boosted by a stronger sales mix and improved aftersales operations, according to New car sales shot up 90% to 32,960 units, while used vehicle sales rose 89.5% to 41,580 units. Group 1's revenues skyrocketed from £1.18bn to £2.3bn in the first half of the year - with gross profit jumping 109.6% to a whopping £313m. The company also reported its UK gross margin improved from 12.6% to 13.6%. Advertisement Read more motors news This performance comes amid Group 1's ongoing restructuring efforts since August last year, which included integrating Inchcape UK's dealerships after a £346m deal last year. The shake-up is expected to put 370 jobs at risk as of the end of June this year, though exact numbers have yet to be confirmed. A spokesperson for Group 1 said: "In line with other retailers, we continue to face cost headwinds relating to tax increases announced in the last Budget, and in response we have identified opportunities to remove duplication, streamline processes and decentralise certain roles to drive efficiencies across the business." In the second quarter, Group 1 shut down two Mercedes-Benz dealerships as part of efforts to improve its UK portfolio. Advertisement Most read in Motors Breaking The group took a $7.6m (£6.1m) hit tied to layoffs and dealership closures, and has spent $18.7 million (£14m) so far this year on restructuring its UK operations. Daryl Kenningham, Group 1 president and CEO, said: 'The U.K. market continues to be challenging in terms of industry volumes and with BEV mandate-related margin pressures.' Watch Tesla test self-driving cars on London streets as it passes famous landmarks He added: 'Integration efforts are largely complete and most U.K. brands are performing to expectations, with positive momentum anticipated in the second half of the year. "SG&A leverage improvement remains a focus in the U.K., with room for further gains. Advertisement "We'll continue to pursue balanced growth while executing opportunistic share repurchases. "Additionally, we're actively reviewing underperforming stores and developing appropriate plans." US giant Group 1 Automotive runs one of the biggest car dealer networks in the UK. The UK division operates over 115 dealerships and employs more than 7,000 staff. Advertisement The group represents over 21 brands, including Audi, BMW, Citroën, Ford, Mercedes-Benz and Porsche. It comes as Group 1 recently Volkswagen Telford dealership - just months after shutting down three other sites. 2 Group 1 runs over 115 dealerships in the UK Credit: Getty - Contributor
Scottish Sun
4 days ago
- Automotive
- Scottish Sun
Major car dealership group with more than 100 UK sites ‘threatens job losses' as firm blames Reeves' tax raids
Group 1 shut down two Mercedes-Benz dealerships this quarter CUT OUT Major car dealership group with more than 100 UK sites 'threatens job losses' as firm blames Reeves' tax raids Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A MAJOR car dealer giant with over 100 UK sites is planning job cuts despite reporting hefty profits. Group 1 Automotive will 'streamline' operations by cutting costs and axing duplicate roles. Sign up for Scottish Sun newsletter Sign up 2 Group 1 Automotive UK has been restructuring its business since August last year Credit: Alamy The dealership doubled its gross profit in the first half of 2025, with sales soaring 94% - boosted by a stronger sales mix and improved aftersales operations, according to Car Dealer Magazine. New car sales shot up 90% to 32,960 units, while used vehicle sales rose 89.5% to 41,580 units. Group 1's revenues skyrocketed from £1.18bn to £2.3bn in the first half of the year - with gross profit jumping 109.6% to a whopping £313m. The company also reported its UK gross margin improved from 12.6% to 13.6%. This performance comes amid Group 1's ongoing restructuring efforts since August last year, which included integrating Inchcape UK's dealerships after a £346m deal last year. The shake-up is expected to put 370 jobs at risk as of the end of June this year, though exact numbers have yet to be confirmed. A spokesperson for Group 1 said: "In line with other retailers, we continue to face cost headwinds relating to tax increases announced in the last Budget, and in response we have identified opportunities to remove duplication, streamline processes and decentralise certain roles to drive efficiencies across the business." In the second quarter, Group 1 shut down two Mercedes-Benz dealerships as part of efforts to improve its UK portfolio. The group took a $7.6m (£6.1m) hit tied to layoffs and dealership closures, and has spent $18.7 million (£14m) so far this year on restructuring its UK operations. Daryl Kenningham, Group 1 president and CEO, said: 'The U.K. market continues to be challenging in terms of industry volumes and with BEV mandate-related margin pressures.' Watch Tesla test self-driving cars on London streets as it passes famous landmarks He added: 'Integration efforts are largely complete and most U.K. brands are performing to expectations, with positive momentum anticipated in the second half of the year. "SG&A leverage improvement remains a focus in the U.K., with room for further gains. "We'll continue to pursue balanced growth while executing opportunistic share repurchases. "Additionally, we're actively reviewing underperforming stores and developing appropriate plans." US giant Group 1 Automotive runs one of the biggest car dealer networks in the UK. The UK division operates over 115 dealerships and employs more than 7,000 staff. The group represents over 21 brands, including Audi, BMW, Citroën, Ford, Mercedes-Benz and Porsche. It comes as Group 1 recently announced the closure of its Volkswagen Telford dealership - just months after shutting down three other sites.
Yahoo
5 days ago
- Automotive
- Yahoo
Group 1 Automotive, Inc. (GPI): A Bull Case Theory
We came across a bullish thesis on Group 1 Automotive, Inc. Stock Analysis Compilation's Substack. In this article, we will summarize the bulls' thesis on GPI. Group 1 Automotive, Inc. 's share was trading at $414.63 as of June 22nd. GPI's trailing and forward P/E were 11.57 and 10.06 respectively according to Yahoo Finance. Group 1 Automotive, Inc. is an internationally diversified automotive retailer with operations in the U.S. and U.K., built on disciplined growth, operational excellence, and a portfolio concentrated in luxury and import brands. The company's strategy emphasizes methodical consolidation through acquiring well-run dealerships at attractive prices and enhancing their performance via scale and operational expertise, creating a resilient and compounding enterprise in a fragmented industry. Its U.K. operations serve as a profitable differentiator and natural hedge against regional economic fluctuations, allowing management to allocate capital dynamically across markets. A core strength is its focus on luxury and import brands, which draw affluent, loyal customers and support a high-margin parts and service business. This segment functions as a stable, annuity-like revenue stream less exposed to the cyclicality of new vehicle sales, underpinning the company's operational stability. Group 1 also invests in digital innovation, exemplified by its AcceleRide platform, enabling customers to complete vehicle purchases entirely online—a critical capability in today's evolving retail landscape. A disciplined financial approach, underpinned by prudent capital management and a strong balance sheet, affords the flexibility to pursue accretive acquisitions while returning capital to shareholders. Management's proven track record and deep industry expertise reinforce confidence in its strategy, which balances external expansion with continuous operational improvement. By combining geographic diversification, a favorable brand mix, and a resilient service-driven revenue model, Group 1 Automotive stands as a best-in-class consolidator positioned for sustained, durable growth and long-term shareholder value creation in an evolving global automotive retail environment. Previously we covered a bullish thesis on Lithia Motors, Inc. (LAD) by Chit Chat Stocks in May 2025, which highlighted its disciplined roll-up model, focus on high-margin services, and significant consolidation runway in the fragmented auto dealership market. The stock has appreciated about 6.25% since then as the thesis played out. The thesis still stands, while Stock Analysis Compilation emphasizes Group 1 Automotive's international diversification and luxury-brand focus. Group 1 Automotive, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held GPI at the end of the first quarter which was 36 in the previous quarter. While we acknowledge the potential of GPI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
Yahoo
6 days ago
- Automotive
- Yahoo
Lexus of Albuquerque Unveils New Multi-Million Dollar Sales, Service, and Parts Facility
Expansion Expected to Shorten Service Times and Enhance the Lexus Guest Experience ALBUQUERQUE, N.M., July 25, 2025 /PRNewswire/ -- Following a 20-month, multi-million dollar renovation including ground-up construction, Lexus of Albuquerque will officially unveil its new, state-of-the-art dealership next Tuesday. Grand reopening activities, featuring food, drink, and entertainment—not to mention the newest Lexus models—will take place from 6-8 pm, Tuesday, July 29 at the new dealership, located at 4821 Pan American Fwy. in Albuquerque. Lexus of Albuquerque is part of Houston-based Group 1 Automotive, Inc. (NYSE: GPI), one of the country's largest owners of automotive dealerships, franchises, and collision centers. "From the moment guests drive up, they're surrounded by a sleek and modern dealership with the amenities that Lexus owners expect and deserve," said Mont Porter, General Manager of Lexus of Albuquerque. "Everything from new speed doors that open up to an air-conditioned service drive-up, to solar-powered lot lighting, the addition of EV chargers, and new landscaping, we've focused on creating a premium customer experience, and we invite our guests to come see it for themselves." The previous dealership facility, which was 25 years old, no longer met the needs of customers and Lexus team members, according to Porter. The new dealership includes a new car wash, double the number of service bays from 16 to 32, and space to hire more service technicians, which Porter said he plans to expand to 30 from its current 21. The new showroom, decorated with Albuquerque city themes and southwestern colors, can accommodate 22 salespeople and more cars. In total, more than 17,000 square feet of space has been added for parts and service, including relocating the parts department cashier to the front waiting area for added guest convenience. The new showroom also includes an upscale customer waiting area with complimentary drinks, snacks, and wi-fi. In Group 1's tradition of giving back, Lexus of Albuquerque is making a $10,000 donation to Girls on the Run, a national 501(c)(3) nonprofit organization that believes physical activity-based positive youth development programs can enhance girls' social, emotional, and physical skills and behaviors to navigate life experiences successfully. About Group 1 Automotive, Inc. Group 1 owns and operates 258 automotive dealerships, 322 franchises, and 39 collision centers in the United States and the United Kingdom that offer 36 brands of automobiles. Through its dealerships and omni-channel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts. Group 1 discloses additional information about the Company, its business, and its results of operations at and Media Contact: Kimberly BartaHead of Marketing and CommunicationsGroup 1 Automotive, Inc.503-539-0756kbarta@ View original content: SOURCE Group 1 Automotive, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
