Top 16 Auto Stocks, Ranked by Marvin Scores
Marvin's rules picked 16 auto stocks across four industries. Gentex, Blue Bird and Carvana have the highest Overall scores, while the recreational vehicle makers at the bottom of the list score lowest.
The auto sector covers more than carmakers. This list spans four related industries: auto parts, auto manufacturers, auto dealerships and recreational vehicles. Marvin's rules picked 16 companies from these groups, and they are listed from the highest Overall score to the lowest.
Each company is scored against others in its own industry, not against the whole market. A high score means a company looks strong next to its industry peers today. It says nothing about future results. Scores from different industries are not a perfect like-for-like comparison.
Auto businesses can swing with the economy, and many depend on borrowing and thin margins. Check each company's growth, margins and debt, not just its score. Several companies here show a weak or missing figure, and each description flags it.
The list
How Marvin ranked these stocks
Marvin included companies above about $300 million in size and ranked them by Marvin scores from 0 to 100. Each score is relative to the company's own industry. The group covers four related industries (Auto - Dealerships, Auto - Manufacturers, Auto - Parts and Auto - Recreational Vehicles), with the highest Overall score first and at most four companies per industry.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The 4 related industries in this group (Auto - Dealerships, Auto - Manufacturers, Auto - Parts, Auto - Recreational Vehicles), highest Overall score first; at most 4 per industry.
The stocks, one by one
Gentex Corporation GNTX
Gentex has the top Overall score on the list at 95. An operating margin of 19.3% and a free cash flow margin of 18.9% suggest strong profitability, and revenue growth of 9.6% was moderate. Caution: its debt-to-equity figure is not available, so borrowing could not be checked.
Blue Bird Corporation BLBD
Blue Bird scores 93 overall. Return on equity of 43.0% and debt-to-equity of 0.18 point to strong returns with little borrowing, and revenue grew 9.9%. Caution: its operating margin of 11.8% is thinner than Gentex's.
Carvana Co. CVNA
Carvana's revenue growth of 48.6% is the fastest on this list, and return on equity is 38.9%. Caution: debt-to-equity of 1.43 is the highest here, and free cash flow margin is only 3.7%, so rapid growth comes with heavy borrowing and thin cash generation.
Standard Motor Products, Inc. SMP
Standard Motor Products grew revenue 22.4% last fiscal year and has a gross margin of 32.0%, with an opportunity score of 96. Caution: return on equity is only 7.1% and free cash flow margin is 4.7%, so profits are modest once costs are paid.
XPEL, Inc. XPEL
XPEL has the widest gross margin on the list at 42.9%, an operating margin of 13.5% and low debt-to-equity of 0.21. Caution: free cash flow margin was slightly negative at -0.6%, meaning it did not generate spare cash last fiscal year.
LCI Industries LCII
LCI Industries has an Overall score of 88, helped by an opportunity score of 88. Revenue grew 10.2% and operating margin is 7.5%. Caution: its quality score of 68 is lower than most of the top picks, hinting at a less robust business.
General Motors Company GM
General Motors has a free cash flow margin of 7.8%, but its operating margin is only 1.0% and return on equity is 3.1%. Revenue growth was -1.3%, a slight decline. Caution: gross margin and debt-to-equity are not available, so the picture is incomplete.
Garrett Motion Inc. GTX
Garrett Motion turned 10.3% of revenue into free cash flow, a healthy level, and has a gross margin of 20.3%. Revenue growth was modest at 3.1%. Caution: operating margin, return on equity and debt figures are unavailable, so profitability and borrowing are hard to judge.
Penske Automotive Group, Inc. PAG
Penske Automotive Group scores 60 on quality and 80 on opportunity, with return on equity of 15.6%. Caution: margins are thin, with an operating margin of 3.8%, and revenue growth was flat to slightly down at -0.2%.
Rush Enterprises, Inc. RUSHA
Rush Enterprises has a quality score of 93, low debt-to-equity of 0.22 and an operating margin of 5.1%. Caution: revenue growth was -4.7%, a decline, and its opportunity score of 60 is the lowest among the first ten picks.
Harley-Davidson, Inc. HOG
Harley-Davidson has a solid gross margin of 33.4% and an operating margin of 5.0%. The cautions are significant: revenue growth was -13.8% and free cash flow margin was -3.1%, so sales fell and the business used more cash than it produced.
Group 1 Automotive, Inc. GPI
Group 1 Automotive grew revenue 13.2%, but profitability is thin, with an operating margin of 3.1% and a free cash flow margin of 0.8%. Caution: debt-to-equity of 1.22 is on the higher side, so borrowing is worth watching.
Ford Motor Company F
Ford's revenue growth was 1.2% and its free cash flow margin was 5.0%, but its operating margin was -3.8% and return on equity was -16.2%. The negative figures point to losses at the operating level. Debt-to-equity is not available.
MasterCraft Boat Holdings, Inc. MCFT
MasterCraft Boat Holdings grew revenue 22.8% and produced a free cash flow margin of 6.4%. Caution: operating margin is -0.3% and return on equity is -0.4%, both slightly negative, and its Overall score of 47 is far below the top of the list.
Winnebago Industries, Inc. WGO
Winnebago Industries has a free cash flow margin of 6.4% and moderate debt-to-equity of 0.39. Caution: revenue growth was -5.9%, operating margin is only 2.4%, and its Overall score of 40 is among the lowest on the list.
Thor Industries, Inc. THO
Thor Industries carries little debt, with debt-to-equity of 0.21, but revenue growth was just 0.3% and return on equity was 4.2%. Caution: its Overall score of 43 is the lowest here, and operating and free cash flow margins are not available.
Common questions
Why do the recreational vehicle makers rank at the bottom?
Marvin scores each company against others in its own industry. The three recreational vehicle companies at the bottom (MasterCraft, Winnebago and Thor) have lower Overall scores, with weaker growth or thin margins than their peers. LCI Industries, in the same group, scores far higher.
Does a high Marvin score mean a stock is a good buy?
No. The scores describe how a company compares with others in its industry today, based on figures like growth, margins and debt. They are not a prediction of future results or advice to buy, sell or hold.
What does debt-to-equity tell me about an auto company?
It compares what a company owes with the money invested by its shareholders. A lower ratio generally means less borrowing. Car dealers and manufacturers often use more debt than other businesses, so it helps to compare companies within the same industry.
Keep reading
- Top 15 Auto Parts Stocks Ranked by Marvin Scores
- Top 15 Consumer Cyclical Stocks by Marvin Opportunity Score
- Top 15 Consumer Cyclical Stocks Right Now
- Top 15 Consumer Cyclical Companies by Business Quality
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.