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Penske Automotive Group

Market Cap

US$7.0b

Last Updated

2021/04/15 23:09 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Proven track record average dividend payer.


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: 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.


Market Performance


7 Day Return

6.6%

PAG

1.8%

US Specialty Retail

1.1%

US Market


1 Year Return

188.8%

PAG

118.0%

US Specialty Retail

56.6%

US Market

Return vs Industry: PAG exceeded the US Specialty Retail industry which returned 118% over the past year.

Return vs Market: PAG exceeded the US Market which returned 56.6% over the past year.


Shareholder returns

PAGIndustryMarket
7 Day6.6%1.8%1.1%
30 Day2.0%0.6%1.7%
90 Day34.3%11.0%6.0%
1 Year192.9%188.8%119.3%118.0%59.3%56.6%
3 Year112.0%95.9%109.5%101.2%62.6%52.2%
5 Year179.1%143.9%107.4%91.9%120.6%96.1%

Long-Term 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

Valuation

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

12.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PAG ($86.01) is trading above our estimate of fair value ($72.24)

Significantly Below Fair Value: PAG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PAG is good value based on its PE Ratio (12.8x) compared to the US Specialty Retail industry average (19.3x).

PE vs Market: PAG is good value based on its PE Ratio (12.8x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: PAG is poor value based on its PEG Ratio (1.4x)


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 (3x).


Future Growth

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

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAG's forecast earnings growth (9% per year) is above the savings rate (2%).

Earnings vs Market: PAG's earnings (9% per year) are forecast to grow slower than the US market (18.4% per year).

High Growth Earnings: PAG's earnings are forecast to grow, but not significantly.

Revenue vs Market: PAG's revenue (8.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: PAG's revenue (8.1% 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 high in 3 years time (23.4%)


Past Performance

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

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAG has high quality earnings.

Growing Profit Margin: PAG's current net profit margins (2.7%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: PAG's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: PAG's earnings growth over the past year (24.9%) exceeds its 5-year average (5.6% per year).

Earnings vs Industry: PAG earnings growth over the past year (24.9%) underperformed the Specialty Retail industry 30.5%.


Return on Equity

High ROE: PAG's Return on Equity (16.4%) is considered low.


Financial Health

How is Penske Automotive Group's financial position?


Financial Position Analysis

Short Term Liabilities: PAG's short term assets ($4.4B) do not cover its short term liabilities ($4.7B).

Long Term Liabilities: PAG's short term assets ($4.4B) do not cover its long term liabilities ($5.2B).


Debt to Equity History and Analysis

Debt Level: PAG's debt to equity ratio (145.3%) is considered high.

Reducing Debt: PAG's debt to equity ratio has reduced from 254.2% to 145.3% over the past 5 years.

Debt Coverage: PAG's debt is well covered by operating cash flow (24.9%).

Interest Coverage: PAG's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

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

1.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PAG's dividend (2%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: PAG's dividend (2%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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 (12.6%), 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 (19.8% payout ratio).


Next Steps

Management

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

13.0yrs

Average management tenure


CEO

Roger Penske (83 yo)

21.92yrs

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 ($USD5.98M) is about average for companies of similar size in the US market ($USD6.41M).

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 (13 years average tenure).


Board Members

Experienced Board: PAG's board of directors are seasoned and experienced ( 14.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PAG insiders have only sold shares 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: PAG
  • Exchange: NYSE
  • Founded: 1990
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$6.977b
  • Shares outstanding: 80.83m
  • Website: https://www.penskeautomotive.com

Number of Employees


Location

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

Listings


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 Com...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/15 23:09
End of Day Share Price2021/04/15 00:00
Earnings2020/12/31
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.