DB:UA9

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Penske Automotive Group

Executive Summary

Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships.


Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has Penske Automotive Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UA9's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.1%

UA9

5.8%

DE Specialty Retail

2.8%

DE Market


1 Year Return

-18.2%

UA9

-6.6%

DE Specialty Retail

0.3%

DE Market

Return vs Industry: UA9 underperformed the German Specialty Retail industry which returned -6.6% over the past year.

Return vs Market: UA9 underperformed the German Market which returned 0.3% over the past year.


Shareholder returns

UA9IndustryMarket
7 Day6.1%5.8%2.8%
30 Day-1.1%2.6%0.5%
90 Day55.9%39.6%27.7%
1 Year-16.1%-18.2%-4.7%-6.6%2.3%0.3%
3 Year0.3%-8.0%-20.2%-53.6%3.5%-4.9%
5 Year-11.1%-22.6%-14.4%-55.6%11.4%-3.4%

Price Volatility Vs. Market

How volatile is Penske Automotive Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Penske Automotive Group undervalued compared to its fair value and its price relative to the market?

49.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UA9 (€34.6) is trading below our estimate of fair value (€69.01)

Significantly Below Fair Value: UA9 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UA9 is good value based on its PE Ratio (8.3x) compared to the Specialty Retail industry average (12.5x).

PE vs Market: UA9 is good value based on its PE Ratio (8.3x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: UA9 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: UA9 is overvalued based on its PB Ratio (1.2x) compared to the DE Specialty Retail industry average (1x).


Next Steps

Future Growth

How is Penske Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UA9's forecast earnings growth (27.9% per year) is above the savings rate (0.2%).

Earnings vs Market: UA9's earnings (27.9% per year) are forecast to grow faster than the German market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UA9's revenue (6.6% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: UA9's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UA9's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Penske Automotive Group performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UA9 has high quality earnings.

Growing Profit Margin: UA9's current net profit margins (1.7%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: UA9's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: UA9's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UA9 had negative earnings growth (-16.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (-3.3%).


Return on Equity

High ROE: UA9's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Penske Automotive Group's financial position?


Financial Position Analysis

Short Term Liabilities: UA9's short term assets ($5.4B) exceed its short term liabilities ($5.2B).

Long Term Liabilities: UA9's short term assets ($5.4B) do not cover its long term liabilities ($5.9B).


Debt to Equity History and Analysis

Debt Level: UA9's debt to equity ratio (240.4%) is considered high.

Reducing Debt: UA9's debt to equity ratio has reduced from 247.8% to 240.4% over the past 5 years.

Debt Coverage: UA9's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: UA9's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Penske Automotive Group current dividend yield, its reliability and sustainability?

3.84%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UA9's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate UA9's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UA9's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UA9's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: UA9 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UA9's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Roger Penske (83yo)

21.17yrs

Tenure

US$6,893,752

Compensation

Mr. Roger S. Penske, Sr., has been Chairman of the Board and President of Pennsylvania International Raceway, Inc. since 1986. He serves as Managing Director at Transportation Resource Partners III, L.P. H ...


CEO Compensation Analysis

Compensation vs Market: Roger's total compensation ($USD6.89M) is above average for companies of similar size in the German market ($USD2.73M).

Compensation vs Earnings: Roger's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Roger Penske
Chairman & CEO21.17yrsUS$6.89m0.76% $21.2m
Robert Kurnick
President & Director14.17yrsUS$1.98m0.11% $3.2m
John Carlson
Executive VP & CFO5.08yrsUS$1.47m0.046% $1.3m
Shane Spradlin
Executive VP12.58yrsUS$1.48m0.054% $1.5m
Claude Denker
Executive Vice President of Human Resources5yrsUS$1.42m0.048% $1.3m
Masashi Yamanaka
Executive VP of Strategic Relationship Management & Director1.58yrsno datano data
Richard Hook
Executive VP & Chief Information Officer5.17yrsno datano data
Anthony Pordon
Executive Vice President of Investor Relations & Corporate Developmentno datano datano data
Terri Mulcahey
Executive Vice President of Marketing & Business Development5yrsno datano data
Hiroshi Ishikawa
Executive Vice President of International Business Development16.08yrsno datano data

5.2yrs

Average Tenure

55.5yo

Average Age

Experienced Management: UA9's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roger Penske
Chairman & CEO21.17yrsUS$6.89m0.76% $21.2m
Robert Kurnick
President & Director14.17yrsUS$1.98m0.11% $3.2m
Masashi Yamanaka
Executive VP of Strategic Relationship Management & Director1.58yrsno datano data
Gerard Nieuwenhuys
Chairman of The Sytner Group5.83yrsno datano data
Michael Eisenson
Director26.58yrsUS$319.32k0.099% $2.8m
Ronald Steinhart
Independent Director19.33yrsUS$320.21k0.071% $2.0m
John Barr
Independent Director17.58yrsUS$359.35k0.027% $768.6k
Gregory Smith
Independent Director2.92yrsUS$333.88kno data
H. Thompson
Lead Independent Directorno dataUS$340.47k0.13% $3.6m
Kimberly McWaters
Independent Director15.58yrsUS$332.28k0.011% $311.8k

15.6yrs

Average Tenure

66yo

Average Age

Experienced Board: UA9's board of directors are seasoned and experienced ( 15.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Penske Automotive Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Penske Automotive Group, Inc.
  • Ticker: UA9
  • Exchange: DB
  • Founded: 1990
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$3.161b
  • Listing Market Cap: US$2.811b
  • Shares outstanding: 80.46m
  • Website: https://www.penskeautomotive.com

Number of Employees


Location

  • Penske Automotive Group, Inc.
  • 2555 Telegraph Road
  • Bloomfield Hills
  • Michigan
  • 48302-0954
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UA9DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1996
PAGNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1996

Biography

Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors. The company engages in the sale of new and used motor vehicles; and related products and services, including vehicle and collision repair services, as well as in the placement of finance and lease contracts, third-party insurance products, and other aftermarket products. It also operates used vehicle supercenters that retails and wholesales used vehicles. The company also operates a heavy and medium duty trucks dealership, offering primarily Freightliner and Western Star branded trucks, as well as a range of used trucks, services and parts, and maintenance and repair services. In addition, it imports and distributes Western Star heavy-duty trucks, MAN heavy and medium duty trucks, buses, and Dennis Eagle refuse collection vehicles, together with associated parts. Further, the company distributes diesel and gas engines, and power systems. The company operates 317 retail automotive franchises, including 145 franchises located in the United States and 172 franchises located outside of the United States; sixteen used vehicle supercenters in the United States and the United Kingdom; and 25 commercial truck dealerships in Texas, Oklahoma, Tennessee, Georgia, Utah, Idaho, and Canada. Penske Automotive Group, Inc. was incorporated in 1990 and is headquartered in Bloomfield Hills, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 21:51
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.