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PAG

Penske Automotive GroupNYSE:PAG Stock Report

Last Price

US$101.96

Market Cap

US$8.0b

7D

-1.5%

1Y

55.8%

Updated

26 Jan, 2022

Data

Company Financials +
PAG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health3/6
Dividends4/6

PAG Stock Overview

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

Penske Automotive Group Competitors

Carvana

NYSE:CVNA

US$26.9b

Vroom

NasdaqGS:VRM

US$1.1b

Shift Technologies

NasdaqCM:SFT

US$169.1m

Ford Motor

NYSE:F

US$79.8b

Price History & Performance

Summary of all time highs, changes and price drops for Penske Automotive Group
Historical stock prices
Current Share PriceUS$101.96
52 Week HighUS$114.34
52 Week LowUS$59.45
Beta1.46
1 Month Change-0.86%
3 Month Change-1.41%
1 Year Change55.83%
3 Year Change120.79%
5 Year Change87.56%
Change since IPO484.72%

Recent News & Updates

Jan 05

Penske Automotive Group: Fabulously-Run Dealerships At A Bargain Price

Roger Penske's enduring enterprise is a favorite among customers and employees, if not investors. But shareholder yields on the stock are significantly friendlier to investors' pockets than the prevailing rate on the 10 Year Treasury Note. Despite negative revenue growth, the company has strong returns on equity and invested capital. Penske and its peers share considerable risks and catalysts as the automotive retail industry transitions to EVs while battling semiconductor chip shortages, ICE devotees, and the COVID-19 pandemic. Nevertheless, I am bullish on this fabulously-run transportation services company currently trading at what appears to be a reasonable, if not bargain, price.

Dec 11
We Think Penske Automotive Group (NYSE:PAG) Can Stay On Top Of Its Debt

We Think Penske Automotive Group (NYSE:PAG) Can Stay On Top Of Its Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Nov 29
A Look At The Fair Value Of Penske Automotive Group, Inc. (NYSE:PAG)

A Look At The Fair Value Of Penske Automotive Group, Inc. (NYSE:PAG)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Penske Automotive...

Shareholder Returns

PAGUS Specialty RetailUS Market
7D-1.5%-1.9%-5.1%
1Y55.8%-5.3%3.3%

Return vs Industry: PAG exceeded the US Specialty Retail industry which returned -2.4% over the past year.

Return vs Market: PAG exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is PAG's price volatile compared to industry and market?
PAG volatility
PAG Average Weekly Movement5.8%
Specialty Retail Industry Average Movement7.7%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

Stable Share Price: PAG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PAG's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199024,000Roger Penskehttps://www.penskeautomotive.com

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.

Penske Automotive Group Fundamentals Summary

How do Penske Automotive Group's earnings and revenue compare to its market cap?
PAG fundamental statistics
Market CapUS$7.98b
Earnings (TTM)US$1.08b
Revenue (TTM)US$25.07b

7.4x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PAG income statement (TTM)
RevenueUS$25.07b
Cost of RevenueUS$20.91b
Gross ProfitUS$4.16b
ExpensesUS$3.08b
EarningsUS$1.08b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 09, 2022

Earnings per share (EPS)13.75
Gross Margin16.59%
Net Profit Margin4.29%
Debt/Equity Ratio89.5%

How did PAG perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

13%

Payout Ratio

Valuation

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

27.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PAG ($101.96) is trading below our estimate of fair value ($141.46)

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


Price To Earnings Ratio

PE vs Industry: PAG is good value based on its PE Ratio (7.4x) compared to the US Specialty Retail industry average (8.3x).

PE vs Market: PAG is good value based on its PE Ratio (7.4x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: PAG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PAG is good value based on its PB Ratio (2.1x) compared to the US Specialty Retail industry average (2.5x).


Future Growth

How is Penske Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAG's earnings are forecast to decline over the next 3 years (-2.6% per year).

Earnings vs Market: PAG's earnings are forecast to decline over the next 3 years (-2.6% per year).

High Growth Earnings: PAG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PAG's revenue (6.1% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: PAG's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PAG's Return on Equity is forecast to be low in 3 years time (18%).


Past Performance

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

13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAG has high quality earnings.

Growing Profit Margin: PAG's current net profit margins (4.3%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: PAG's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: PAG's earnings growth over the past year (142%) exceeds its 5-year average (13.5% per year).

Earnings vs Industry: PAG earnings growth over the past year (142%) underperformed the Specialty Retail industry 151.5%.


Return on Equity

High ROE: PAG's Return on Equity (28%) is considered high.


Financial Health

How is Penske Automotive Group's financial position?


Financial Position Analysis

Short Term Liabilities: PAG's short term assets ($3.6B) do not cover its short term liabilities ($3.8B).

Long Term Liabilities: PAG's short term assets ($3.6B) do not cover its long term liabilities ($5.0B).


Debt to Equity History and Analysis

Debt Level: PAG's net debt to equity ratio (86.4%) is considered high.

Reducing Debt: PAG's debt to equity ratio has reduced from 285% to 89.5% over the past 5 years.

Debt Coverage: PAG's debt is well covered by operating cash flow (48.6%).

Interest Coverage: PAG's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet


Dividend

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

1.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PAG's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: PAG's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: PAG's dividend payments have been volatile in the past 10 years.

Growing Dividend: PAG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.3%), PAG's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PAG's dividends in 3 years are forecast to be well covered by earnings (16.7% payout ratio).


Next Steps

Management

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

9.5yrs

Average management tenure


CEO

Roger Penske (84 yo)

22.67yrs

Tenure

US$5,979,555

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 ($USD5.98M) is about average for companies of similar size in the US market ($USD6.49M).

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


Leadership Team

Experienced Management: PAG's management team is seasoned and experienced (9.5 years average tenure).


Board Members

Experienced Board: PAG's board of directors are seasoned and experienced ( 16.4 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 employee growth, exchange listings and data sources


Key Information

  • Name: Penske Automotive Group, Inc.
  • Ticker: PAG
  • Exchange: NYSE
  • Founded: 1990
  • Industry: Automotive Retail
  • Sector: Retail
  • Implied Market Cap: US$7.983b
  • Shares outstanding: 78.30m
  • Website: https://www.penskeautomotive.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 00:55
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.