NYSE:PAG

Stock Analysis Report

Penske Automotive Group

Executive Summary

Penske Automotive Group, Inc. operates as a transportation services company.

Snowflake

Fundamentals

Average dividend payer and fair value.


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


Market Performance


7 Day Return

-2.8%

NYSE:PAG

-3.4%

US Specialty Retail

-1.0%

US Market


1 Year Return

-17.4%

NYSE:PAG

-6.5%

US Specialty Retail

-0.4%

US Market

PAG underperformed the Specialty Retail industry which returned -7.1% over the past year.

PAG underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

PAGIndustryMarket
7 Day-2.8%-3.4%-1.0%
30 Day-4.2%-7.4%-3.3%
90 Day-2.9%-6.4%0.4%
1 Year-14.5%-17.4%-5.0%-6.5%1.8%-0.4%
3 Year10.2%0.7%17.8%11.8%39.4%30.4%
5 Year3.0%-10.1%41.5%28.9%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

24%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Penske Automotive Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Penske Automotive Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Penske Automotive Group is poor value based on expected growth next year.


Price Based on Value of Assets

Penske Automotive Group is overvalued based on assets compared to the US Specialty Retail industry average.


Next Steps

Future Growth

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

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Penske Automotive Group's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Penske Automotive Group's earnings are expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

Penske Automotive Group's revenue growth is positive but not above the United States of America market average.

Penske Automotive Group's earnings growth is positive but not above the United States of America market average.

Penske Automotive Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Penske Automotive Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

15.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Penske Automotive Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Penske Automotive Group used its assets less efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Penske Automotive Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Penske Automotive Group's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Penske Automotive Group's level of debt (226%) 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 (227.1% vs 226% today).

Debt is not well covered by operating cash flow (8.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

3.93%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Penske Automotive Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).

Penske Automotive Group's dividend is below the markets top 25% of dividend payers in United States of America (3.9%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).


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?

11.3yrs

Average management tenure


CEO

Roger Penske (82yo)

20.3yrs

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

Roger's remuneration is higher than average for companies of similar size in United States of America.

Roger's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.3yrs

Average Tenure

57yo

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.


Board Age and Tenure

16.7yrs

Average Tenure

65yo

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.


Insider Trading

Penske Automotive Group individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$116,99704 Jun 19
Shane Spradlin
EntityIndividual
Role
Executive VP
Shares2,656
Max PriceUS$44.05
SellUS$395,06304 Jun 19
Robert Kurnick
EntityIndividual
Role
President & Director
Member of the Board of Directors
Shares8,579
Max PriceUS$46.05
SellUS$221,56001 Mar 19
John Barr
EntityIndividual
Role
Member of the Board of Directors
Shares5,000
Max PriceUS$44.31

Ownership Breakdown


Management Team

  • Robert Kurnick (57yo)

    President & Director

    • Tenure: 11.3yrs
    • Compensation: $1.96m
  • Roger Penske (82yo)

    Chairman

    • Tenure: 20.3yrs
    • Compensation: $6.82m
  • Anthony Pordon

    Executive Vice President of Investor Relations & Corporate Development

  • Terri Mulcahey

    Executive Vice President of Marketing & Business Development

    • Tenure: 4.1yrs
  • Shane Spradlin (49yo)

    Executive VP

    • Tenure: 11.7yrs
    • Compensation: $1.80m
  • Rich Hook

    Executive VP & Chief Information Officer

    • Tenure: 4.3yrs
  • Hiro Ishikawa (56yo)

    Executive Vice President of International Business Development

    • Tenure: 15.2yrs
  • Bud Denker (60yo)

    Executive Vice President of Human Resources

    • Tenure: 4.1yrs
    • Compensation: $1.75m
  • J.D. Carlson (49yo)

    Executive VP & CFO

    • Tenure: 4.2yrs
    • Compensation: $1.79m
  • George Brochick (74yo)

    Executive Vice President of Strategic Development

    • Tenure: 16.7yrs

Board Members

  • Robert Kurnick (57yo)

    President & Director

    • Tenure: 13.3yrs
    • Compensation: $1.96m
  • Roger Penske (82yo)

    Chairman

    • Tenure: 20.3yrs
    • Compensation: $6.82m
  • Greg Smith (67yo)

    Independent Director

    • Tenure: 2.0yrs
    • Compensation: $283.20k
  • H. Thompson (80yo)

    Lead Director

    • Compensation: $295.28k
  • Gerard Nieuwenhuys (56yo)

    Chairman of The Sytner Group

    • Tenure: 4.9yrs
  • Mike Eisenson (63yo)

    Director

    • Tenure: 25.7yrs
    • Compensation: $271.20k
  • Kim McWaters (55yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: $281.61k
  • John Barr (71yo)

    Independent Director

    • Tenure: 16.7yrs
    • Compensation: $389.04k
  • Ronald Steinhart (78yo)

    Independent Director

    • Tenure: 18.4yrs
    • Compensation: $277.30k
  • Greg Penske (56yo)

    Chairman of Penske Motor Group and Chief Executive Officer of Penske Motor Group

    • Tenure: 26.6yrs
    • Compensation: $13.26k

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$3.519b
  • Shares outstanding: 82.09m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UA9DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1996
PAGNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 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. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/16 23:59
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.