| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 3/6 |
| Dividends | 4/6 |
PAG Stock Overview
Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships.
Penske Automotive Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$101.96 |
| 52 Week High | US$114.34 |
| 52 Week Low | US$59.45 |
| Beta | 1.46 |
| 1 Month Change | -0.86% |
| 3 Month Change | -1.41% |
| 1 Year Change | 55.83% |
| 3 Year Change | 120.79% |
| 5 Year Change | 87.56% |
| Change since IPO | 484.72% |
Recent News & Updates
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.
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...
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
| PAG | US Specialty Retail | US Market | |
|---|---|---|---|
| 7D | -1.5% | -1.9% | -5.1% |
| 1Y | 55.8% | -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
| PAG volatility | |
|---|---|
| PAG Average Weekly Movement | 5.8% |
| Specialty Retail Industry Average Movement | 7.7% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.4% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1990 | 24,000 | Roger Penske | https://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
| PAG fundamental statistics | |
|---|---|
| Market Cap | US$7.98b |
| Earnings (TTM) | US$1.08b |
| Revenue (TTM) | US$25.07b |
7.4x
P/E Ratio0.3x
P/S RatioIs PAG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PAG income statement (TTM) | |
|---|---|
| Revenue | US$25.07b |
| Cost of Revenue | US$20.91b |
| Gross Profit | US$4.16b |
| Expenses | US$3.08b |
| Earnings | US$1.08b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 09, 2022
| Earnings per share (EPS) | 13.75 |
| Gross Margin | 16.59% |
| Net Profit Margin | 4.29% |
| Debt/Equity Ratio | 89.5% |
How did PAG perform over the long term?
See historical performance and comparisonDividends
1.8%
Current Dividend Yield13%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/26 00:55 |
| End of Day Share Price | 2022/01/25 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.