PENSKE AUTOMOTIVE GROUP INC (PAG) Stock Fundamental Analysis
USA - NYSE:PAG - US70959W1036 - Common Stock
159.09 USD
-0.72 (-0.45%)
159.09 USD
0 (0%)
PAG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. PAG has an average financial health and profitability rating. PAG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PAG was profitable.
PAG had a positive operating cash flow in the past year.
Each year in the past 5 years PAG has been profitable.
In the past 5 years PAG always reported a positive cash flow from operatings.
1.2 Ratios
PAG has a Return On Assets of 5.51%. This is in the better half of the industry: PAG outperforms 72.95% of its industry peers.
PAG's Return On Equity of 16.53% is fine compared to the rest of the industry. PAG outperforms 75.41% of its industry peers.
The Return On Invested Capital of PAG (6.49%) is better than 64.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAG is below the industry average of 11.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 16.53% | ||
| ROIC | 6.49% |
ROA(3y)7.33%
ROA(5y)6.98%
ROE(3y)24.4%
ROE(5y)23.77%
ROIC(3y)7.78%
ROIC(5y)7.29%
1.3 Margins
With a decent Profit Margin value of 3.08%, PAG is doing good in the industry, outperforming 68.85% of the companies in the same industry.
In the last couple of years the Profit Margin of PAG has grown nicely.
PAG has a Operating Margin of 4.22%. This is in the better half of the industry: PAG outperforms 61.48% of its industry peers.
In the last couple of years the Operating Margin of PAG has grown nicely.
Looking at the Gross Margin, with a value of 16.54%, PAG is doing worse than 83.61% of the companies in the same industry.
In the last couple of years the Gross Margin of PAG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.22% | ||
| PM (TTM) | 3.08% | ||
| GM | 16.54% |
OM growth 3Y-6.61%
OM growth 5Y8.95%
PM growth 3Y-13.41%
PM growth 5Y9.91%
GM growth 3Y-1.79%
GM growth 5Y2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PAG is destroying value.
PAG has less shares outstanding than it did 1 year ago.
PAG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PAG is higher compared to a year ago.
2.2 Solvency
PAG has an Altman-Z score of 3.06. This indicates that PAG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.06, PAG is in the better half of the industry, outperforming 70.49% of the companies in the same industry.
PAG has a debt to FCF ratio of 7.32. This is a slightly negative value and a sign of low solvency as PAG would need 7.32 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.32, PAG is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
PAG has a Debt/Equity ratio of 0.92. This is a neutral value indicating PAG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.92, PAG perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.75
WACC8.63%
2.3 Liquidity
PAG has a Current Ratio of 0.97. This is a bad value and indicates that PAG is not financially healthy enough and could expect problems in meeting its short term obligations.
PAG has a worse Current ratio (0.97) than 75.41% of its industry peers.
PAG has a Quick Ratio of 0.97. This is a bad value and indicates that PAG is not financially healthy enough and could expect problems in meeting its short term obligations.
PAG has a Quick ratio of 0.21. This is amonst the worse of the industry: PAG underperforms 88.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.05% over the past year.
The Earnings Per Share has been growing by 20.82% on average over the past years. This is a very strong growth
PAG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.25%.
PAG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.61% yearly.
EPS 1Y (TTM)2.05%
EPS 3Y-3.27%
EPS 5Y20.82%
EPS Q2Q%-4.72%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y6.02%
Revenue growth 5Y5.61%
Sales Q2Q%1.38%
3.2 Future
Based on estimates for the next years, PAG will show a small growth in Earnings Per Share. The EPS will grow by 5.93% on average per year.
The Revenue is expected to grow by 3.66% on average over the next years.
EPS Next Y2.51%
EPS Next 2Y2.02%
EPS Next 3Y3.36%
EPS Next 5Y5.93%
Revenue Next Year0.83%
Revenue Next 2Y1.77%
Revenue Next 3Y2.71%
Revenue Next 5Y3.66%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.41, which indicates a very decent valuation of PAG.
PAG's Price/Earnings ratio is rather cheap when compared to the industry. PAG is cheaper than 80.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. PAG is valued rather cheaply when compared to this.
PAG is valuated reasonably with a Price/Forward Earnings ratio of 11.12.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAG indicates a somewhat cheap valuation: PAG is cheaper than 75.41% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. PAG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAG indicates a somewhat cheap valuation: PAG is cheaper than 64.75% of the companies listed in the same industry.
76.23% of the companies in the same industry are more expensive than PAG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.88 | ||
| EV/EBITDA | 8.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PAG does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PAG may justify a higher PE ratio.
PEG (NY)4.55
PEG (5Y)0.55
EPS Next 2Y2.02%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.24%, PAG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.49, PAG pays a better dividend. On top of this PAG pays more dividend than 88.52% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, PAG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
On average, the dividend of PAG grows each year by 21.07%, which is quite nice.
PAG has been paying a dividend for at least 10 years, so it has a reliable track record.
PAG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)21.07%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
35.22% of the earnings are spent on dividend by PAG. This is a low number and sustainable payout ratio.
PAG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.22%
EPS Next 2Y2.02%
EPS Next 3Y3.36%
159.09
-0.72 (-0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change0.78%
Ins Owners0.85%
Ins Owner Change-45.69%
Market Cap10.51B
Revenue(TTM)30.68B
Net Income(TTM)943.70M
Analysts72.31
Price Target183.63 (15.43%)
Short Float %3.23%
Short Ratio7.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend4.1
Dividend Growth(5Y)21.07%
DP35.22%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.82%
Min EPS beat(2)-6.69%
Max EPS beat(2)5.05%
EPS beat(4)3
Avg EPS beat(4)1.91%
Min EPS beat(4)-6.69%
Max EPS beat(4)6.57%
EPS beat(8)4
Avg EPS beat(8)-0.13%
EPS beat(12)7
Avg EPS beat(12)0.67%
EPS beat(16)11
Avg EPS beat(16)3.31%
Revenue beat(2)0
Avg Revenue beat(2)-2.8%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)-1.29%
Revenue beat(4)1
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)0.87%
Revenue beat(8)2
Avg Revenue beat(8)-1.19%
Revenue beat(12)6
Avg Revenue beat(12)0.55%
Revenue beat(16)9
Avg Revenue beat(16)0.88%
PT rev (1m)0%
PT rev (3m)2.94%
EPS NQ rev (1m)-3.27%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)-1.95%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 11.12 | ||
| P/S | 0.34 | ||
| P/FCF | 13.88 | ||
| P/OCF | 9.82 | ||
| P/B | 1.84 | ||
| P/tB | 4.69 | ||
| EV/EBITDA | 8.21 |
EPS(TTM)13.94
EY8.76%
EPS(NY)14.31
Fwd EY9%
FCF(TTM)11.46
FCFY7.21%
OCF(TTM)16.2
OCFY10.18%
SpS464.6
BVpS86.42
TBVpS33.91
PEG (NY)4.55
PEG (5Y)0.55
Graham Number164.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 16.53% | ||
| ROCE | 11.87% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.52% | ||
| ROICexgc | 8.52% | ||
| OM | 4.22% | ||
| PM (TTM) | 3.08% | ||
| GM | 16.54% | ||
| FCFM | 2.47% |
ROA(3y)7.33%
ROA(5y)6.98%
ROE(3y)24.4%
ROE(5y)23.77%
ROIC(3y)7.78%
ROIC(5y)7.29%
ROICexc(3y)7.84%
ROICexc(5y)7.34%
ROICexgc(3y)10.17%
ROICexgc(5y)9.53%
ROCE(3y)14.2%
ROCE(5y)13.12%
ROICexgc growth 3Y-7.25%
ROICexgc growth 5Y13.31%
ROICexc growth 3Y-7.29%
ROICexc growth 5Y12.13%
OM growth 3Y-6.61%
OM growth 5Y8.95%
PM growth 3Y-13.41%
PM growth 5Y9.91%
GM growth 3Y-1.79%
GM growth 5Y2%
F-Score8
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.32 | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 188.43% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 4.83 | ||
| Cash Conversion | 73.16% | ||
| Profit Quality | 80.22% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 3.06 |
F-Score8
WACC8.63%
ROIC/WACC0.75
Cap/Depr(3y)240.48%
Cap/Depr(5y)217.45%
Cap/Sales(3y)1.17%
Cap/Sales(5y)1.08%
Profit Quality(3y)80.57%
Profit Quality(5y)103.28%
High Growth Momentum
Growth
EPS 1Y (TTM)2.05%
EPS 3Y-3.27%
EPS 5Y20.82%
EPS Q2Q%-4.72%
EPS Next Y2.51%
EPS Next 2Y2.02%
EPS Next 3Y3.36%
EPS Next 5Y5.93%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y6.02%
Revenue growth 5Y5.61%
Sales Q2Q%1.38%
Revenue Next Year0.83%
Revenue Next 2Y1.77%
Revenue Next 3Y2.71%
Revenue Next 5Y3.66%
EBIT growth 1Y0.53%
EBIT growth 3Y-0.98%
EBIT growth 5Y15.06%
EBIT Next Year20.23%
EBIT Next 3Y4.91%
EBIT Next 5Y3.35%
FCF growth 1Y-17.19%
FCF growth 3Y-8.08%
FCF growth 5Y24.3%
OCF growth 1Y-15.98%
OCF growth 3Y-3.02%
OCF growth 5Y17.87%
PENSKE AUTOMOTIVE GROUP INC / PAG FAQ
What is the ChartMill fundamental rating of PENSKE AUTOMOTIVE GROUP INC (PAG) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PAG.
Can you provide the valuation status for PENSKE AUTOMOTIVE GROUP INC?
ChartMill assigns a valuation rating of 6 / 10 to PENSKE AUTOMOTIVE GROUP INC (PAG). This can be considered as Fairly Valued.
What is the profitability of PAG stock?
PENSKE AUTOMOTIVE GROUP INC (PAG) has a profitability rating of 6 / 10.
What is the valuation of PENSKE AUTOMOTIVE GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PENSKE AUTOMOTIVE GROUP INC (PAG) is 11.41 and the Price/Book (PB) ratio is 1.84.
What is the financial health of PENSKE AUTOMOTIVE GROUP INC (PAG) stock?
The financial health rating of PENSKE AUTOMOTIVE GROUP INC (PAG) is 4 / 10.