NYSE:PAG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Penske Automotive Group

Executive Summary

Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships. More Details


Snowflake Analysis

Good value 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 less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PAG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.4%

PAG

-1.1%

US Specialty Retail

0.7%

US Market


1 Year Return

14.5%

PAG

23.2%

US Specialty Retail

22.2%

US Market

Return vs Industry: PAG underperformed the US Specialty Retail industry which returned 25.3% over the past year.

Return vs Market: PAG underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

PAGIndustryMarket
7 Day-2.4%-1.1%0.7%
30 Day9.5%9.5%11.8%
90 Day18.4%6.8%8.6%
1 Year16.3%14.5%24.6%23.2%25.0%22.2%
3 Year31.2%21.2%77.1%69.5%49.4%39.5%
5 Year46.4%27.7%80.5%66.7%100.2%78.1%

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

Valuation

Is Penske Automotive Group undervalued compared to its fair value and its price relative to the market?

2.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PAG ($57.55) is trading below our estimate of fair value ($58.93)

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 (10.4x) compared to the US Specialty Retail industry average (19.7x).

PE vs Market: PAG is good value based on its PE Ratio (10.4x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: PAG is poor value based on its PEG Ratio (2x)


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 (2.3x).


Next Steps

Future Growth

How is Penske Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAG's forecast earnings growth (5.1% per year) is above the savings rate (2.2%).

Earnings vs Market: PAG's earnings (5.1% per year) are forecast to grow slower than the US market (21.8% per year).

High Growth Earnings: PAG's earnings are forecast to grow, but not significantly.

Revenue vs Market: PAG's revenue (7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: PAG's revenue (7% 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 (14.4%).


Next Steps

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 (2.2%) 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 (3%) is below its 5-year average (5.6% per year).

Earnings vs Industry: PAG earnings growth over the past year (3%) underperformed the Specialty Retail industry 14.3%.


Return on Equity

High ROE: PAG's Return on Equity (14.4%) is considered low.


Next Steps

  • Explore strong past performing companies in the Retail industry.

Financial Health

How is Penske Automotive Group's financial position?


Financial Position Analysis

Short Term Liabilities: PAG's short term assets ($4.3B) exceed its short term liabilities ($4.1B).

Long Term Liabilities: PAG's short term assets ($4.3B) do not cover its long term liabilities ($5.8B).


Debt to Equity History and Analysis

Debt Level: PAG's debt to equity ratio (156.7%) is considered high.

Reducing Debt: PAG's debt to equity ratio has reduced from 239.4% to 156.7% over the past 5 years.

Debt Coverage: PAG's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: PAG's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Penske Automotive Group current dividend yield, its reliability and sustainability?

2.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PAG's dividend (2.92%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: PAG's dividend (2.92%) is low compared to the top 25% of dividend payers in the US market (4.14%).


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 (15.2%), 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 (27% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.7yrs

Average management tenure


CEO

Roger Penske (83 yo)

21.58yrs

Tenure

US$6,893,752

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 ($USD6.89M) is above average for companies of similar size in the US market ($USD5.21M).

Compensation vs Earnings: Roger's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Roger Penske
Chairman & CEO21.58yrsUS$6.89m0.76%
$ 35.0m
Robert Kurnick
President & Director14.58yrsUS$1.98m0.11%
$ 5.3m
John Carlson
Executive VP & CFO5.5yrsUS$1.47m0.036%
$ 1.7m
Shane Spradlin
Executive VP13yrsUS$1.48m0.046%
$ 2.1m
Claude Denker
Executive Vice President of Human Resources5.42yrsUS$1.42m0.048%
$ 2.2m
Masashi Yamanaka
Executive VP of Strategic Relationship Management & Director2yrsno datano data
Richard Hook
Executive VP & Chief Information Officer5.58yrsno datano data
Anthony Pordon
Executive Vice President of Investor Relations & Corporate Developmentno datano datano data
Tracy Cassady
Executive Vice President of Marketing0.33yrno datano data
Hiroshi Ishikawa
Executive Vice President of International Business Development16.5yrsno datano data
George Brochick
Executive Vice President of Strategic Development18yrsno datano data
Bernie Wolfe
Executive Vice President of Western Region Operations12.75yrsno datano data

12.7yrs

Average Tenure

56.5yo

Average Age

Experienced Management: PAG's management team is seasoned and experienced (12.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roger Penske
Chairman & CEO21.58yrsUS$6.89m0.76%
$ 35.0m
Robert Kurnick
President & Director14.58yrsUS$1.98m0.11%
$ 5.3m
Masashi Yamanaka
Executive VP of Strategic Relationship Management & Director2yrsno datano data
Gerard Nieuwenhuys
Chairman of The Sytner Group6.25yrsno datano data
Michael Eisenson
Director27yrsUS$319.32k0.099%
$ 4.6m
Ronald Steinhart
Independent Director19.75yrsUS$320.21k0.071%
$ 3.3m
Gregory Penske
Director0.58yrUS$13.26k0.041%
$ 1.9m
John Barr
Independent Director18yrsUS$359.35k0.015%
$ 702.3k
Gregory Smith
Independent Director3.33yrsUS$333.88k0%
$ 0
H. Thompson
Lead Independent Directorno dataUS$340.47k0.13%
$ 5.9m
Kimberly McWaters
Independent Director16yrsUS$332.28k0.011%
$ 513.7k
Sandra Pierce
Independent Director8yrsUS$325.69k0.034%
$ 1.6m

14.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: PAG's board of directors are seasoned and experienced ( 14.6 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$4.623b
  • Shares outstanding: 80.34m
  • Website: https://www.penskeautomotive.com

Number of Employees


Location

  • Penske Automotive Group, Inc.
  • 2555 Telegraph Road
  • Bloomfield Hills
  • Michigan
  • 48302-0954
  • 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., 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:29
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.