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Penske Automotive Group

NYSE:PAG
Snowflake Description

Second-rate dividend payer and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PAG
NYSE
$4B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

Penske Automotive Group, Inc. operates as a transportation services company. The last earnings update was 59 days ago. More info.


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PAG Share Price and Events
7 Day Returns
2.4%
NYSE:PAG
1%
US Specialty Retail
2.2%
US Market
1 Year Returns
-2.7%
NYSE:PAG
1.8%
US Specialty Retail
3.8%
US Market
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.
Price Volatility
PAG
Industry
5yr Volatility vs Market

Value

 Is Penske Automotive Group undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Penske Automotive Group.

NYSE:PAG Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:PAG
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.

NYSE:PAG DCF 1st Stage: Next 10 year cash flow forecast
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
NYSE:PAG DCF 2nd Stage: Terminal Value
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
NYSE:PAG Total Equity Value
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
NYSE:PAG Discount to Share Price
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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:PAG PE (Price to Earnings) Ratio Data Sources
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.

NYSE:PAG PE (Price to Earnings) Ratio Calculation
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?
Raw Data
NYSE:PAG PEG (Price to Earnings to Growth) Ratio Data Sources
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 .

NYSE:PAG PEG (Price to Earnings to Growth) Ratio Calculation
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?
Raw Data
NYSE:PAG PB (Price to Book) Ratio Data Sources
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
NYSE:PAG PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess Penske Automotive Group's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. 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

 How is Penske Automotive Group expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

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!
Annual Growth Rate
2.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Penske Automotive Group expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:PAG Future Growth Rates Data Sources
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
Raw Data
NYSE:PAG Analysts Growth Expectations Data Sources
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 numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PAG Future Estimates Data
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
NYSE:PAG Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Penske Automotive Group's earnings are expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
  • Penske Automotive Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PAG 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.

NYSE:PAG Future Estimates Data
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
NYSE:PAG Past Financials Data
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%).
X
Future performance checks
We assess Penske Automotive Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Penske Automotive Group's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Penske Automotive Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Penske Automotive Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PAG Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Penske Automotive Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Penske Automotive Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Penske Automotive Group Company Filings, last reported 2 months ago.

NYSE:PAG Past Debt and Equity Data
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).
X
Financial health checks
We assess Penske Automotive Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Penske Automotive Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
3.23%
Current annual income from Penske Automotive Group dividends. Estimated to be 3.48% next year.
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
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NYSE:PAG Annualized Past and Future Dividends
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.

NYSE:PAG Future Dividends Estimate Data
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
NYSE:PAG Past Annualized Dividends Data
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.
Current Payout to shareholders
What portion of Penske Automotive Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
X
Income/ dividend checks
We assess Penske Automotive Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Penske Automotive Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Roger Penske
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:

11.2
Average Tenure
56
Average Age
  • 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

TITLE
Chairman
COMPENSATION
$7M
AGE
81
TENURE
20.1 yrs

Robert Kurnick

TITLE
President & Director
COMPENSATION
$2M
AGE
56
TENURE
11.2 yrs

J.D. Carlson

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
48
TENURE
4 yrs

Shane Spradlin

TITLE
Executive VP
COMPENSATION
$2M
AGE
48
TENURE
11.5 yrs

Bud Denker

TITLE
Executive Vice President of Human Resources
COMPENSATION
$2M
AGE
59
TENURE
3.9 yrs

Rich Hook

TITLE
Executive VP & Chief Information Officer
TENURE
4.1 yrs

Anthony Pordon

TITLE
Executive Vice President of Investor Relations & Corporate Development

Terri Mulcahey

TITLE
Executive Vice President of Marketing & Business Development
TENURE
3.9 yrs

Hiro Ishikawa

TITLE
Executive Vice President of International Business Development
AGE
55
TENURE
15 yrs

George Brochick

TITLE
Executive Vice President of Strategic Development
AGE
73
TENURE
16.5 yrs
Board of Directors Tenure

Average tenure and age of the Penske Automotive Group board of directors in years:

16.5
Average Tenure
64
Average Age
  • 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

TITLE
President & Director
COMPENSATION
$2M
AGE
56
TENURE
13.1 yrs

Gerard Nieuwenhuys

TITLE
Chairman of The Sytner Group
AGE
55
TENURE
4.8 yrs

Greg Penske

TITLE
Chairman of Penske Motor Group and Chief Executive Officer of Penske Motor Group
COMPENSATION
$13K
AGE
55
TENURE
26.4 yrs

H. Thompson

TITLE
Lead Director
COMPENSATION
$295K
AGE
79

Roger Penske

TITLE
Chairman
COMPENSATION
$7M
AGE
81
TENURE
20.1 yrs

Kim McWaters

TITLE
Independent Director
COMPENSATION
$282K
AGE
54
TENURE
14.5 yrs

Greg Smith

TITLE
Independent Director
COMPENSATION
$283K
AGE
66
TENURE
1.8 yrs

Mike Eisenson

TITLE
Director
COMPENSATION
$271K
AGE
62
TENURE
25.5 yrs

Ronald Steinhart

TITLE
Independent Director
COMPENSATION
$277K
AGE
77
TENURE
18.3 yrs

John Barr

TITLE
Independent Director
COMPENSATION
$389K
AGE
70
TENURE
16.5 yrs
Who owns this company?
Recent Insider Trading
  • Penske Automotive Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) 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
X
Management checks
We assess Penske Automotive Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Is 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 -

Did 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 -

Here'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 -

Does 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 -

What 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 -

How 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 -

Is 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 -

Is 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 -

How 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 -

Company 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
Staff numbers
27,000
Penske Automotive Group employees.
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.