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
Rewards
Risk Analysis
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
| PAG | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.6% | 1.8% | 1.1% |
| 30 Day | 2.0% | 0.6% | 1.7% |
| 90 Day | 34.3% | 11.0% | 6.0% |
| 1 Year | 192.9%188.8% | 119.3%118.0% | 59.3%56.6% |
| 3 Year | 112.0%95.9% | 109.5%101.2% | 62.6%52.2% |
| 5 Year | 179.1%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
3 days ago | Simply Wall St
Calculating The Intrinsic Value Of Penske Automotive Group, Inc. (NYSE:PAG)2 weeks ago | Simply Wall St
At US$81.58, Is It Time To Put Penske Automotive Group, Inc. (NYSE:PAG) On Your Watch List?4 weeks ago | Simply Wall St
This Insider Has Just Sold Shares In Penske Automotive Group, Inc. (NYSE:PAG)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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/15 23:09 |
| End of Day Share Price | 2021/04/15 00:00 |
| Earnings | 2020/12/31 |
| 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.