Penske Automotive Group
Penske Automotive Group, Inc. operates as a transportation services company. The last earnings update was 59 days ago. More info.
Add to Portfolio Compare Print
PAG Share Price and Events
7 Day Returns
1 Year Returns
PAG Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Penske Automotive Group (PAG) | 2.4% | 6.7% | 8.9% | -2.7% | 48.6% | -4.8% |
| US Specialty Retail | 1% | 3.3% | 1.4% | 1.8% | 30.6% | 44.3% |
| US Market | 2.2% | 4.2% | 4.4% | 3.8% | 43% | 40.9% |
1 Year Return vs Industry and Market
- PAG underperformed the Specialty Retail industry which returned 1.8% over the past year.
- PAG underperformed the Market in United States of America which returned 3.8% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Penske Automotive Group
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Penske Automotive Group.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 11 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 14.2% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Specialty Retail Unlevered Beta | Simply Wall St/ S&P Global | 0.87 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.871 (1 + (1- 21%) (217.83%)) |
1.918 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.92 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.918 * 5.96%) |
14.16% |
Discounted Cash Flow Calculation for NYSE:PAG using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Penske Automotive Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 14.16%) |
|
|---|---|---|---|
| 2019 | 443.23 | Analyst x3 | 388.24 |
| 2020 | 371.13 | Analyst x4 | 284.75 |
| 2021 | 328.25 | Est @ -11.55% | 220.61 |
| 2022 | 304.40 | Est @ -7.27% | 179.19 |
| 2023 | 291.41 | Est @ -4.27% | 150.26 |
| 2024 | 285.09 | Est @ -2.17% | 128.77 |
| 2025 | 283.09 | Est @ -0.7% | 112.00 |
| 2026 | 284.03 | Est @ 0.33% | 98.43 |
| 2027 | 287.01 | Est @ 1.05% | 87.12 |
| 2028 | 291.47 | Est @ 1.55% | 77.50 |
| Present value of next 10 years cash flows | $1,726.87 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $291.47 × (1 + 2.73%) ÷ (14.16% – 2.73%) |
$2,618.70 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $2,618.70 ÷ (1 + 14.16%)10 |
$696.29 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $1,726.87 + $696.29 |
$2,423.16 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $2,423.16 / 83.65 |
$28.97 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $28.97 |
| Current discount | Discount to share price of
$47.13
= -1 x ($47.13 - $28.97) / $28.97 |
-62.7% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Penske Automotive Group is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Penske Automotive Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Penske Automotive Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $5.46 |
| NYSE:PAG Share Price ** | NYSE (2019-06-21) in USD | $47.13 |
| United States of America Specialty Retail Industry PE Ratio | Median Figure of 63 Publicly-Listed Specialty Retail Companies | 14.94x |
| United States of America Market PE Ratio | Median Figure of 3,094 Publicly-Listed Companies | 17.87x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Penske Automotive Group.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:PAG Share Price ÷ EPS (both in USD) = 47.13 ÷ 5.46 |
8.64x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Penske Automotive Group is good value based on earnings compared to the US Specialty Retail industry average.
- Penske Automotive Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Penske Automotive Group's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 8.64x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts |
2.8%per year |
| United States of America Specialty Retail Industry PEG Ratio | Median Figure of 56 Publicly-Listed Specialty Retail Companies | 1.56x |
| United States of America Market PEG Ratio | Median Figure of 2,134 Publicly-Listed Companies | 1.54x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 8.64x ÷ 2.8% |
3.05x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Penske Automotive Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Penske Automotive Group's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $31.57 |
| NYSE:PAG Share Price * | NYSE (2019-06-21) in USD | $47.13 |
| United States of America Specialty Retail Industry PB Ratio | Median Figure of 100 Publicly-Listed Specialty Retail Companies | 1.37x |
| United States of America Market PB Ratio | Median Figure of 5,255 Publicly-Listed Companies | 1.81x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:PAG Share Price ÷ Book Value per Share (both in USD) = 47.13 ÷ 31.57 |
1.49x |
* Primary Listing of Penske Automotive Group.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Penske Automotive Group is overvalued based on assets compared to the US Specialty Retail industry average.
Value checks
We assess Penske Automotive Group's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check) Penske Automotive Group has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Penske Automotive Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Penske Automotive Group's earnings growth is positive but not above the United States of America market average.
- Penske Automotive Group's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:PAG Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts | 2.8% |
| NYSE:PAG Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts | -0.5% |
| United States of America Specialty Retail Industry Earnings Growth Rate | Market Cap Weighted Average | 10.2% |
| United States of America Specialty Retail Industry Revenue Growth Rate | Market Cap Weighted Average | 5.5% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 20,865 | 1 | ||
| 2020-12-31 | 23,167 | 624 | 476 | 11 |
| 2019-12-31 | 22,886 | 626 | 459 | 11 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 22,603 | 531 | 463 |
| 2018-12-31 | 22,785 | 615 | 471 |
| 2018-09-30 | 22,744 | 692 | 703 |
| 2018-06-30 | 22,610 | 720 | 667 |
| 2018-03-31 | 22,053 | 607 | 638 |
| 2017-12-31 | 21,387 | 624 | 614 |
| 2017-09-30 | 20,877 | 376 | 366 |
| 2017-06-30 | 20,504 | 422 | 359 |
| 2017-03-31 | 20,375 | 481 | 348 |
| 2016-12-31 | 20,119 | 373 | 344 |
| 2016-09-30 | 20,152 | 480 | 334 |
| 2016-06-30 | 19,960 | 389 | 333 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
All data from Penske Automotive Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | ||||
| 2020-12-31 | 5.70 | 5.93 | 5.55 | 7.00 |
| 2019-12-31 | 5.47 | 5.64 | 5.35 | 7.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 5.46 |
| 2018-12-31 | 5.52 |
| 2018-09-30 | 8.23 |
| 2018-06-30 | 7.78 |
| 2018-03-31 | 7.43 |
| 2017-12-31 | 7.14 |
| 2017-09-30 | 4.27 |
| 2017-06-30 | 4.20 |
| 2017-03-31 | 4.08 |
| 2016-12-31 | 4.00 |
| 2016-09-30 | 3.85 |
| 2016-06-30 | 3.79 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Penske Automotive Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess Penske Automotive Group's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Penske Automotive Group has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Penske Automotive Group performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Penske Automotive Group's year on year earnings growth rate has been positive over the past 5 years.
- Penske Automotive Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Penske Automotive Group's 1-year earnings growth is negative, it can't be compared to the US Specialty Retail industry average.
Earnings and Revenue History
All data from Penske Automotive Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 22,602.60 | 462.60 | 2,649.60 | |
| 2018-12-31 | 22,785.10 | 470.50 | 2,646.30 | |
| 2018-09-30 | 22,743.80 | 702.70 | 2,647.50 | |
| 2018-06-30 | 22,609.60 | 666.90 | 2,630.80 | |
| 2018-03-31 | 22,052.70 | 638.30 | 2,577.40 | |
| 2017-12-31 | 21,386.90 | 613.50 | 2,516.00 | |
| 2017-09-30 | 20,876.70 | 366.00 | 2,449.00 | |
| 2017-06-30 | 20,504.30 | 359.10 | 2,384.10 | |
| 2017-03-31 | 20,375.00 | 347.80 | 2,344.80 | |
| 2016-12-31 | 20,118.50 | 343.90 | 2,302.00 | |
| 2016-09-30 | 20,152.00 | 334.10 | 2,293.50 | |
| 2016-06-30 | 19,960.10 | 333.40 | 2,275.70 | |
| 2016-03-31 | 19,626.60 | 332.80 | 2,246.10 | |
| 2015-12-31 | 19,284.90 | 329.60 | 2,223.00 | |
| 2015-09-30 | 18,789.20 | 336.20 | 2,174.90 | |
| 2015-06-30 | 18,225.80 | 326.20 | 2,113.80 | |
| 2015-03-31 | 17,699.70 | 310.30 | 2,067.20 | |
| 2014-12-31 | 17,232.00 | 301.40 | 2,008.60 | |
| 2014-09-30 | 16,511.30 | 284.50 | 1,903.50 | |
| 2014-06-30 | 15,873.70 | 273.90 | 1,847.60 | |
| 2014-03-31 | 15,109.80 | 258.70 | 1,773.80 | |
| 2013-12-31 | 14,482.50 | 247.00 | 1,711.60 | |
| 2013-09-30 | 14,008.52 | 238.93 | 1,684.34 | |
| 2013-06-30 | 13,585.44 | 214.39 | 1,637.98 | |
| 2013-03-31 | 13,269.89 | 201.64 | 1,605.92 | |
| 2012-12-31 | 12,902.60 | 194.50 | 1,558.30 | |
| 2012-09-30 | 12,475.72 | 184.34 | 1,509.65 | |
| 2012-06-30 | 12,038.14 | 199.38 | 1,479.39 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Penske Automotive Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Penske Automotive Group used its assets less efficiently than the US Specialty Retail industry average last year based on Return on Assets.
- Penske Automotive Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Penske Automotive Group's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Penske Automotive Group has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Penske Automotive Group's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Penske Automotive Group's finances.
The net worth of a company is the difference between its assets and liabilities.
- Penske Automotive Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Penske Automotive Group's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Penske Automotive Group Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 2,660.90 | 8,587.80 | 43.50 |
| 2018-12-31 | 2,634.70 | 6,007.50 | 39.40 |
| 2018-09-30 | 2,612.00 | 5,614.50 | 37.60 |
| 2018-06-30 | 2,525.80 | 5,755.60 | 45.80 |
| 2018-03-31 | 2,494.40 | 5,990.60 | 52.80 |
| 2017-12-31 | 2,428.00 | 5,925.00 | 45.70 |
| 2017-09-30 | 2,112.00 | 5,848.90 | 37.20 |
| 2017-06-30 | 2,016.70 | 5,541.70 | 20.70 |
| 2017-03-31 | 1,896.90 | 5,438.60 | 72.20 |
| 2016-12-31 | 1,779.50 | 5,194.90 | 24.00 |
| 2016-09-30 | 1,788.70 | 5,095.90 | 89.40 |
| 2016-06-30 | 1,732.90 | 4,692.00 | 97.50 |
| 2016-03-31 | 1,724.00 | 4,834.40 | 45.60 |
| 2015-12-31 | 1,834.90 | 4,654.60 | 62.40 |
| 2015-09-30 | 1,821.10 | 4,353.50 | 49.70 |
| 2015-06-30 | 1,779.00 | 4,209.70 | 36.70 |
| 2015-03-31 | 1,671.40 | 4,145.90 | 66.80 |
| 2014-12-31 | 1,681.20 | 4,099.60 | 36.30 |
| 2014-09-30 | 1,655.40 | 3,733.10 | 150.50 |
| 2014-06-30 | 1,646.70 | 3,739.70 | 61.40 |
| 2014-03-31 | 1,583.20 | 3,705.70 | 54.90 |
| 2013-12-31 | 1,522.10 | 3,576.80 | 50.30 |
| 2013-09-30 | 1,457.39 | 3,409.58 | 71.10 |
| 2013-06-30 | 1,356.27 | 3,158.52 | 26.25 |
| 2013-03-31 | 1,305.58 | 3,073.75 | 31.63 |
| 2012-12-31 | 1,316.30 | 3,067.20 | 43.50 |
| 2012-09-30 | 1,268.39 | 2,790.02 | 25.94 |
| 2012-06-30 | 1,211.25 | 2,689.68 | 37.22 |
- Penske Automotive Group's level of debt (230%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (234% vs 230% today).
- Debt is not well covered by operating cash flow (8.7%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).
Financial health checks
We assess Penske Automotive Group's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Penske Automotive Group has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Penske Automotive Group's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Penske Automotive Group
shares you are expected to receive
$65
in your first year as a dividend.
Dividend Amount
- Penske Automotive Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
- Penske Automotive Group's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
| United States of America Specialty Retail Industry Average Dividend Yield | Market Cap Weighted Average of 38 Stocks | 2.2% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2012 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 1.90 | 1.00 |
| 2020-12-31 | 1.65 | 4.00 |
| 2019-12-31 | 1.56 | 4.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-30 | 1.520 | 3.404 |
| 2018-10-17 | 1.480 | 3.420 |
| 2018-07-18 | 1.440 | 2.884 |
| 2018-05-10 | 1.400 | 2.860 |
| 2018-01-30 | 1.360 | 2.957 |
| 2017-10-11 | 1.320 | 2.735 |
| 2017-07-26 | 1.280 | 2.957 |
| 2017-05-10 | 1.240 | 2.877 |
| 2017-02-09 | 1.200 | 2.502 |
| 2016-10-19 | 1.160 | 2.311 |
| 2016-07-27 | 1.120 | 2.506 |
| 2016-05-04 | 1.080 | 3.041 |
| 2016-01-28 | 1.040 | 2.893 |
| 2015-10-14 | 1.000 | 2.348 |
| 2015-07-16 | 0.960 | 1.881 |
| 2015-05-05 | 0.920 | 1.782 |
| 2015-01-28 | 0.880 | 1.747 |
| 2014-10-15 | 0.840 | 1.794 |
| 2014-07-16 | 0.800 | 1.770 |
| 2014-05-02 | 0.760 | 1.604 |
| 2014-01-28 | 0.720 | 1.667 |
| 2013-10-23 | 0.680 | 1.571 |
| 2013-07-17 | 0.640 | 1.608 |
| 2013-05-09 | 0.600 | 1.895 |
| 2013-01-29 | 0.560 | 1.778 |
| 2012-10-18 | 0.520 | 1.758 |
| 2012-07-19 | 0.480 | 1.758 |
| 2012-04-19 | 0.440 | 1.813 |
| 2012-01-31 | 0.400 | 1.627 |
| 2011-11-02 | 0.360 | 1.775 |
| 2011-07-26 | 0.320 | 1.753 |
| 2011-05-11 | 0.280 | 1.314 |
| 2010-10-22 | 0.000 | 0.000 |
| 2010-07-30 | 0.000 | 0.000 |
| 2010-07-29 | 0.000 | 0.000 |
| 2010-05-03 | 0.000 | 0.000 |
| 2010-04-30 | 0.000 | 0.000 |
| 2010-02-24 | 0.000 | 0.000 |
| 2010-02-19 | 0.000 | 0.000 |
| 2009-11-04 | 0.000 | 0.000 |
| 2009-10-30 | 0.000 | 0.000 |
| 2009-07-31 | 0.000 | 0.000 |
| 2009-07-29 | 0.000 | 0.000 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Penske Automotive Group has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Penske Automotive Group only paid a dividend in the past 8 years.
Income/ dividend checks
We assess Penske Automotive Group's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Penske Automotive Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Penske Automotive Group has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $6,824,351 |
| AGE | 81 |
| TENURE AS CEO | 20.1 years |
CEO Bio
Mr. Roger S. Penske 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. He has been the Chief Executive Officer of Penske Automotive Group, Inc. (alternate name United Auto Group Inc.), since May 1999. Mr. Penske is based at the Michigan office of Transportation Resource Partners where he is also responsible for the Transportation Resource Management Fund. Mr. Penske has been the Chairman and the Chief Executive Officer of Penske Corporation since 1969. He serves as the Chief Executive Officer of Penske Company LLC. He founded Penske Automotive Group Inc., since 1999 and has been its Chairman and the Chief Executive Officer since May 1999. Mr. Penske was the Founder of Penske Logistics, Penske Racing Inc., and Penske Racing South Inc. He served as Managing Director of Transportation Resource Partners, LP. Mr. Penske served as a Senior Advisor to Board of Directors at Delphi Corp. He served as Vice President of International Speedway Corp. since July 1999. He has been the Chairman of Penske Truck Leasing Corp. since 1982; Detroit Diesel Corp. since 1987; and Penske Automotive Group, Inc., since May 1999. He served as Chairman of Detroit Diesel Remanufacturing LLC and United Agro Group Inc. Mr. Penske serves as the Chairman of the Detroit Investment Fund and a Member of The Business Council. He served as Chairman of Penske Logistics, Inc. since 1969. Mr. Penske served as the Chairman of Penske Motorsports from March 1996 until its acquisition by US in 1999. Prior to March 1996, He served as the Chairman of Michigan International Speedway, Inc. since 1973 and California Speedway Corporation since 1994. Mr. Penske has been a Vice Chairman of Delphi Automotive Systems Corporation; Penske Automotive Group, Inc. and CarsDirect.com, Inc. since May 2000. He has been an Independent Director of Universal Technical Institute, Inc. since 2002. He has been a Director of Penske Logistics, Inc. since 1969. He serves as a Director of Business Leaders for Michigan, Downtown Detroit Partnership, Detroit Renaissance and a Member of The Business Council. He served as Director of DPH Holdings Corp., since 1999 and served as its Senior Advisor to Board of Directors. He served as Director of General Electric Company from 1994 to April 24, 2013 and Internet Brands, Inc. from May 2000 to June 2009. He served as Director of Invest Detroit. Mr. Penske served as Director at Penske Motorsports Inc. since 1995; Delphi Corp.; Detroit Investment Fund; Home Depot Inc. from 2001 to May 2005; and Gulfstream Aerospace Corporation since December 1993. He graduated with BA from Lehigh University.
CEO Compensation
- Roger's compensation has been consistent with company performance over the past year, both up more than 20%.
- Roger's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Penske Automotive Group management team in years:
- The average tenure for the Penske Automotive Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Roger Penske
Chairman
$7M
81
20.1 yrs
Robert Kurnick
President & Director
$2M
56
11.2 yrs
J.D. Carlson
Executive VP & CFO
$2M
48
4 yrs
Shane Spradlin
Executive VP
$2M
48
11.5 yrs
Bud Denker
Executive Vice President of Human Resources
$2M
59
3.9 yrs
Rich Hook
Executive VP & Chief Information Officer
4.1 yrs
Anthony Pordon
Executive Vice President of Investor Relations & Corporate Development
Terri Mulcahey
Executive Vice President of Marketing & Business Development
3.9 yrs
Hiro Ishikawa
Executive Vice President of International Business Development
55
15 yrs
George Brochick
Executive Vice President of Strategic Development
73
16.5 yrs
Board of Directors Tenure
Average tenure and age of the Penske Automotive Group board of directors in years:
- The average tenure for the Penske Automotive Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Robert Kurnick
President & Director
$2M
56
13.1 yrs
Gerard Nieuwenhuys
Chairman of The Sytner Group
55
4.8 yrs
Greg Penske
Chairman of Penske Motor Group and Chief Executive Officer of Penske Motor Group
$13K
55
26.4 yrs
H. Thompson
Lead Director
$295K
79
Roger Penske
Chairman
$7M
81
20.1 yrs
Kim McWaters
Independent Director
$282K
54
14.5 yrs
Greg Smith
Independent Director
$283K
66
1.8 yrs
Mike Eisenson
Director
$271K
62
25.5 yrs
Ronald Steinhart
Independent Director
$277K
77
18.3 yrs
John Barr
Independent Director
$389K
70
16.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 04. Jun 19 | Sell | Shane Spradlin | Individual | 03. Jun 19 | 03. Jun 19 | -2,656 | $44.05 | $-116,997 | ||
| 04. Jun 19 | Sell | Robert Kurnick | Individual | 04. Jun 19 | 04. Jun 19 | -8,579 | $46.05 | $-395,063 | ||
| 01. Mar 19 | Sell | John Barr | Individual | 28. Feb 19 | 28. Feb 19 | -5,000 | $44.31 | $-221,560 | ||
Management checks
We assess Penske Automotive Group's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Penske Automotive Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Can Penske Automotive Group, Inc. (NYSE:PAG) Maintain Its Strong Returns?
The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Penske Automotive Group: 17% = US$463m ÷ US$2.7b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Penske Automotive Group's Debt And Its 17% Return On Equity Penske Automotive Group clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 2.30. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
Simply Wall St - – Full articleIs Penske Automotive Group, Inc.'s (NYSE:PAG) CEO Being Overpaid?
Roger Penske became the CEO of Penske Automotive Group, Inc. … View our latest analysis for Penske Automotive Group How Does Roger Penske's Compensation Compare With Similar Sized Companies? … CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Penske Automotive Group (free visualization of insider trades).
Simply Wall St - – Full articleDid You Miss Penske Automotive Group's (NYSE:PAG) 16% Share Price Gain?
(NYSE:PAG) share price is up 16% in the last three years, that falls short of the market return. … Penske Automotive Group was able to grow its EPS at 14% per year over three years, sending the share price higher. … We note that for Penske Automotive Group the TSR over the last 3 years was 27%, which is better than the share price return mentioned above.
Simply Wall St - – Full articleHere's How P/E Ratios Can Help Us Understand Penske Automotive Group, Inc. (NYSE:PAG)
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Penske Automotive Group has a price to earnings ratio of 8.44, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleDoes Penske Automotive Group, Inc. (NYSE:PAG) Have A High Beta?
Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
Simply Wall St - – Full articleWhat Makes Penske Automotive Group, Inc. (NYSE:PAG) A Great Dividend Stock?
Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Penske Automotive Group is a new dividend aristocrat in the making. … There are a few simple ways to reduce the risks of buying Penske Automotive Group for its dividend, and we'll go through these below.
Simply Wall St - – Full articleHow Much Are Penske Automotive Group, Inc. (NYSE:PAG) Insiders Taking Off The Table?
The Last 12 Months Of Insider Transactions At Penske Automotive Group. … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price. … In total, Penske Automotive Group insiders sold more than they bought over the last year.
Simply Wall St - – Full articleIs Penske Automotive Group, Inc. (NYSE:PAG) A High Quality Stock To Own?
Penske Automotive Group has a ROE of 18%, based on the last twelve months. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.18 in profit. … View our latest analysis for Penske Automotive Group?
Simply Wall St - – Full articleIs Penske Automotive Group, Inc.'s (NYSE:PAG) CEO Overpaid Relative To Its Peers?
Roger Penske has been the CEO of Penske Automotive Group, Inc. … How Does Roger Penske's Compensation Compare With Similar Sized Companies. … We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$4.7m.
Simply Wall St - – Full articleHow Good Is Penske Automotive Group, Inc. (NYSE:PAG) At Creating Shareholder Value?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleCompany Info
Description
Penske Automotive Group, Inc. operates as a transportation services company. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates automotive and commercial truck dealerships principally in the United States, Canada, and Western Europe; and distributes commercial vehicles, diesel engines, gas engines, power systems, and related parts and services primarily in Australia and New Zealand. The company also engages in the sale of new and used motor vehicles of approximately 40 brands; and provision of vehicle services and collision repair services. In addition, it is involved in the sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, and replacement and aftermarket automotive products. Further, the company distributes commercial vehicles and parts to a network of approximately 70 dealership locations, including 9 company-owned retail commercial vehicle dealerships. As of December 31, 2018, it operated 345 automotive retail franchises, of which 154 franchises are located in the United States; and 191 franchises are located outside of the United States primarily in the United Kingdom. The company also operated 20 dealership locations of heavy and medium duty trucks, offering primarily Freightliner and Western Star branded trucks, as well as a range of used trucks, and services and parts. Penske Automotive Group, Inc. is headquartered in Bloomfield Hills, Michigan.
Details
| Name: | Penske Automotive Group, Inc. |
| PAG | |
| Exchange: | NYSE |
| Founded: | |
| $3,942,495,619 | |
| 83,651,509 | |
| Website: | http://www.penskeautomotive.com |
| Address: |
Penske Automotive Group, Inc. 2555 Telegraph Road, Bloomfield Hills, Michigan, 48302, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | PAG | Common Stock | New York Stock Exchange | US | USD | 23. Oct 1996 | |
| DB | UA9 | Common Stock | Deutsche Boerse AG | DE | EUR | 23. Oct 1996 |
Number of employees
Current staff
Industry
| Automotive Retail | |
| Retail |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/24 00:01 |
| End of day share price update: | 2019/06/21 00:00 |
| Last estimates confirmation: | 2019/06/17 |
| Last earnings filing: | 2019/04/26 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
