GCG’s Q4 2021 Automotive Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.
Key findings include the following:
- The automotive sector has seen varying stock performances over the past few years depending on sub-sector within automotive.
- Auto Manufacturing stocks have greatly outperformed the market even with significant supply chain issues. Consumer demand for vehicles remains high, translating to record profits for manufacturers and dealers. During the past 3 years, the automotive manufacturing sector saw its stock rise 245 percent compared to 88 percent for the S&P 500 over that same time period.
- Automotive dealers and manufacturers have outperformed the market over the past three years, while automotive suppliers have underperformed the broader market.
- In Q4 2021, middle-market M&A activity within the Automotive sector saw an increase from Q3 in transaction volume, concluding what has been a historic year for M&A activity.
- Automotive Retail was the most active sector, accounting for 72.4% of total Automotive transaction volume. This is attributed to dealerships trading at a heightened level and commanding all-time high valuations in Q4.
Click here for the full update.