Penske Automotive Group
Market Cap
US$3.9b
Last Updated
2020/01/28 00:05 UTC
Data Sources
Company Financials +
Executive Summary
Penske Automotive Group, Inc. operates as a transportation services company.
Rewards
Risk Analysis
Snowflake Analysis
Good value second-rate 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.6%
PAG
-2.0%
US Specialty Retail
-2.7%
US Market
1 Year Return
4.4%
PAG
20.3%
US Specialty Retail
21.2%
US Market
Return vs Industry: PAG underperformed the US Specialty Retail industry which returned 23.7% over the past year.
Return vs Market: PAG underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| PAG | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | -2.0% | -2.7% |
| 30 Day | -4.9% | -1.0% | 0.09% |
| 90 Day | -1.9% | 4.8% | 6.9% |
| 1 Year | 8.0%4.4% | 22.3%20.3% | 23.8%21.2% |
| 3 Year | -2.8%-11.3% | 43.9%36.6% | 48.1%38.6% |
| 5 Year | 9.2%-5.0% | 48.4%35.8% | 72.5%53.4% |
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
1 week ago | Simply Wall St
Those Who Purchased Penske Automotive Group (NYSE:PAG) Shares Three Years Ago Have A 11% Loss To Show For It3 weeks ago | Simply Wall St
With A Return On Equity Of 16%, Has Penske Automotive Group, Inc.'s (NYSE:PAG) Management Done Well?1 month ago | Simply Wall St
Who Has Been Selling Penske Automotive Group, Inc. (NYSE:PAG) Shares?Valuation
Is Penske Automotive Group undervalued compared to its fair value and its price relative to the market?
9.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PAG ($48.25) is trading below our estimate of fair value ($52.83)
Significantly Below Fair Value: PAG is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PAG is good value based on its PE Ratio (9.3x) compared to the Specialty Retail industry average (17.1x).
PE vs Market: PAG is good value based on its PE Ratio (9.3x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: PAG is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: PAG is good value based on its PB Ratio (1.5x) compared to the US Specialty Retail industry average (1.5x).
Next Steps
Future Growth
How is Penske Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
3.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PAG's forecast earnings growth (3.7% per year) is above the savings rate (1.7%).
Earnings vs Market: PAG's earnings (3.7% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: PAG's earnings are forecast to grow, but not significantly.
Revenue vs Market: PAG's revenue (2.1% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: PAG's revenue (2.1% 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 (15.1%).
Next Steps
Past Performance
How has Penske Automotive Group performed over the past 5 years?
13.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PAG has high quality earnings.
Growing Profit Margin: PAG's current net profit margins (1.9%) are lower than last year (3.1%).
Past Earnings Growth Analysis
Earnings Trend: PAG's earnings have grown by 13.8% per year over the past 5 years.
Accelerating Growth: PAG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PAG had negative earnings growth (-38.6%) over the past year, making it difficult to compare to the Specialty Retail industry average (4.5%).
Return on Equity
High ROE: PAG's Return on Equity (16.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Penske Automotive Group's financial position?
Financial Position Analysis
Short Term Liabilities: PAG's short term assets ($5.2B) do not cover its short term liabilities ($5.3B).
Long Term Liabilities: PAG's short term assets ($5.2B) do not cover its long term liabilities ($5.7B).
Debt to Equity History and Analysis
Debt Level: PAG's debt to equity ratio (234.4%) is considered high.
Reducing Debt: PAG's debt to equity ratio has increased from 225.7% to 234.4% over the past 5 years.
Debt Coverage: PAG's debt is not well covered by operating cash flow (11.9%).
Interest Coverage: PAG's interest payments on its debt are well covered by EBIT (3.1x coverage).
Balance Sheet
Inventory Level: PAG has a high level of physical assets or inventory.
Debt Coverage by Assets: PAG's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Penske Automotive Group's current dividend yield, its reliability and sustainability?
3.40%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: PAG's dividend (3.4%) is higher than the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: PAG's dividend (3.4%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, PAG has been paying a dividend for less than 10 years.
Growing Dividend: PAG's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.5%), PAG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PAG's dividends in 3 years are forecast to be well covered by earnings (32.6% payout ratio).
Next Steps
Management
What is the CEO of Penske Automotive Group's salary, the management and board of directors tenure and is there insider trading?
11.8yrs
Average management tenure
CEO
Roger Penske (82yo)
20.7yrs
Tenure
US$6,824,351
Compensation
Mr. Roger S. Penske has been Chairman of the Board and President of Pennsylvania International Raceway, Inc. since 1986. He serves as Managing Director at Transportation Resource Partners III, L.P. He has ...
CEO Compensation Analysis
Compensation vs Market: Roger's total compensation ($USD6.82M) is above average for companies of similar size in the US market ($USD4.99M).
Compensation vs Earnings: Roger's compensation has been consistent with company performance over the past year.
Management Age and Tenure
11.8yrs
Average Tenure
57yo
Average Age
Experienced Management: PAG's management team is seasoned and experienced (11.8 years average tenure).
Board Age and Tenure
15.1yrs
Average Tenure
60yo
Average Age
Experienced Board: PAG's board of directors are seasoned and experienced ( 15.1 years average tenure).
Insider Trading
Insider Buying: PAG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 5,000 |
| Max Price | US$51.34 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$49.25 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 2,500 |
| Max Price | US$48.55 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 2,656 |
| Max Price | US$44.05 |
| Entity | Individual |
| Role | Member of the Board of Directors President & Director |
| Shares | 8,579 |
| Max Price | US$46.05 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$44.31 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Roger Penske (82yo)
Chairman
- Tenure: 20.7yrs
- Compensation: US$6.82m
Robert Kurnick (57yo)
President & Director
- Tenure: 13.7yrs
- Compensation: US$1.96m
Anthony Pordon
Executive Vice President of Investor Relations & Corporate Development
Hiro Ishikawa (56yo)
Executive Vice President of International Business Development
- Tenure: 15.6yrs
George Brochick (74yo)
Executive Vice President of Strategic Development
- Tenure: 17.1yrs
Shane Spradlin (49yo)
Executive VP
- Tenure: 12.1yrs
- Compensation: US$1.80m
J.D. Carlson (49yo)
Executive VP & CFO
- Tenure: 4.6yrs
- Compensation: US$1.79m
Bud Denker (60yo)
Executive Vice President of Human Resources
- Tenure: 4.5yrs
- Compensation: US$1.75m
Terri Mulcahey
Executive Vice President of Marketing & Business Development
- Tenure: 4.5yrs
Rich Hook
Executive VP & Chief Information Officer
- Tenure: 4.7yrs
Board Members
Mike Eisenson (63yo)
Director
- Tenure: 26.1yrs
- Compensation: US$271.20k
Ronald Steinhart (78yo)
Independent Director
- Tenure: 18.8yrs
- Compensation: US$277.30k
Roger Penske (82yo)
Chairman
- Tenure: 20.7yrs
- Compensation: US$6.82m
Greg Penske (56yo)
Chairman of Penske Motor Group and Chief Executive Officer of Penske Motor Group
- Tenure: 27yrs
- Compensation: US$13.26k
Robert Kurnick (57yo)
President & Director
- Tenure: 13.7yrs
- Compensation: US$1.96m
Greg Smith (67yo)
Independent Director
- Tenure: 2.4yrs
- Compensation: US$283.20k
H. Thompson (80yo)
Lead Director
- Compensation: US$295.28k
Kim McWaters (55yo)
Independent Director
- Tenure: 15.1yrs
- Compensation: US$281.61k
Gerard Nieuwenhuys (56yo)
Chairman of The Sytner Group
- Tenure: 5.3yrs
Mik Yamanaka (55yo)
Executive VP of Strategic Relationship Management & Director
- Tenure: 1.1yrs
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:
- Industry: Automotive Retail
- Sector: Retail
- Market Cap: US$3.907b
- Shares outstanding: 81.06m
- Website: https://www.penskeautomotive.com
Number of Employees
Location
- Penske Automotive Group, Inc.
- 2555 Telegraph Road
- Bloomfield Hills
- Michigan
- 48302
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| UA9 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 1996 |
| PAG | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Oct 1996 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/28 00:05 |
| End of Day Share Price | 2020/01/27 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.