PENSKE AUTOMOTIVE GROUP INC (PAG) Fundamental Analysis & Valuation

NYSE:PAG • US70959W1036

Current stock price

160.42 USD
+0.42 (+0.26%)
At close:
160.42 USD
0 (0%)
After Hours:

This PAG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. PAG Profitability Analysis

1.1 Basic Checks

  • PAG had positive earnings in the past year.
  • PAG had a positive operating cash flow in the past year.
  • PAG had positive earnings in each of the past 5 years.
  • In the past 5 years PAG always reported a positive cash flow from operatings.
PAG Yearly Net Income VS EBIT VS OCF VS FCFPAG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

1.2 Ratios

  • PAG has a better Return On Assets (5.32%) than 72.36% of its industry peers.
  • PAG's Return On Equity of 16.82% is fine compared to the rest of the industry. PAG outperforms 77.24% of its industry peers.
  • PAG has a Return On Invested Capital of 6.22%. This is in the better half of the industry: PAG outperforms 61.79% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for PAG is significantly below the industry average of 13.57%.
Industry RankSector Rank
ROA 5.32%
ROE 16.82%
ROIC 6.22%
ROA(3y)6.02%
ROA(5y)7.33%
ROE(3y)19.41%
ROE(5y)24.13%
ROIC(3y)7.03%
ROIC(5y)7.75%
PAG Yearly ROA, ROE, ROICPAG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 2.94%, PAG is in the better half of the industry, outperforming 67.48% of the companies in the same industry.
  • PAG's Profit Margin has improved in the last couple of years.
  • PAG has a better Operating Margin (4.03%) than 64.23% of its industry peers.
  • In the last couple of years the Operating Margin of PAG has grown nicely.
  • PAG has a Gross Margin of 16.40%. This is amonst the worse of the industry: PAG underperforms 82.11% of its industry peers.
  • PAG's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 4.03%
PM (TTM) 2.94%
GM 16.4%
OM growth 3Y-9.03%
OM growth 5Y3.15%
PM growth 3Y-16%
PM growth 5Y2.02%
GM growth 3Y-1.94%
GM growth 5Y1.03%
PAG Yearly Profit, Operating, Gross MarginsPAG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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3

2. PAG Health Analysis

2.1 Basic Checks

  • PAG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for PAG has been reduced compared to 1 year ago.
  • The number of shares outstanding for PAG has been reduced compared to 5 years ago.
  • Compared to 1 year ago, PAG has a worse debt to assets ratio.
PAG Yearly Shares OutstandingPAG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
PAG Yearly Total Debt VS Total AssetsPAG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • PAG has an Altman-Z score of 3.02. 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 3.02, PAG is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
  • The Debt to FCF ratio of PAG is 9.62, which is on the high side as it means it would take PAG, 9.62 years of fcf income to pay off all of its debts.
  • PAG has a Debt to FCF ratio of 9.62. This is comparable to the rest of the industry: PAG outperforms 56.10% of its industry peers.
  • A Debt/Equity ratio of 1.06 is on the high side and indicates that PAG has dependencies on debt financing.
  • PAG has a Debt to Equity ratio (1.06) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 9.62
Altman-Z 3.02
ROIC/WACC0.9
WACC6.92%
PAG Yearly LT Debt VS Equity VS FCFPAG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • PAG has a Current Ratio of 0.99. This is a bad value and indicates that PAG is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Current ratio of PAG (0.99) is worse than 73.17% of its industry peers.
  • PAG has a Quick Ratio of 0.99. 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's Quick ratio of 0.22 is on the low side compared to the rest of the industry. PAG is outperformed by 86.18% of its industry peers.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.22
PAG Yearly Current Assets VS Current LiabilitesPAG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. PAG Growth Analysis

3.1 Past

  • The earnings per share for PAG have decreased by -3.78% in the last year.
  • The Earnings Per Share has been growing by 14.41% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 4.44% in the past year.
  • Measured over the past years, PAG shows a quite strong growth in Revenue. The Revenue has been growing by 9.24% on average per year.
EPS 1Y (TTM)-3.78%
EPS 3Y-10.59%
EPS 5Y14.41%
EPS Q2Q%-20.06%
Revenue 1Y (TTM)4.44%
Revenue growth 3Y4.57%
Revenue growth 5Y9.24%
Sales Q2Q%0.64%

3.2 Future

  • PAG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.51% yearly.
  • PAG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y2.48%
EPS Next 2Y4.94%
EPS Next 3Y5.85%
EPS Next 5Y8.51%
Revenue Next Year3.54%
Revenue Next 2Y3.93%
Revenue Next 3Y3.35%
Revenue Next 5Y4.41%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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.
PAG Yearly Revenue VS EstimatesPAG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B
PAG Yearly EPS VS EstimatesPAG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15

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6

4. PAG Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.13, which indicates a correct valuation of PAG.
  • 82.11% of the companies in the same industry are more expensive than PAG, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of PAG to the average of the S&P500 Index (27.42), we can say PAG is valued rather cheaply.
  • The Price/Forward Earnings ratio is 11.83, which indicates a very decent valuation of PAG.
  • 80.49% of the companies in the same industry are more expensive than PAG, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 22.24. PAG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 12.13
Fwd PE 11.83
PAG Price Earnings VS Forward Price EarningsPAG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • 65.04% of the companies in the same industry are more expensive than PAG, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAG indicates a somewhat cheap valuation: PAG is cheaper than 71.54% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.21
EV/EBITDA 8.69
PAG Per share dataPAG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of PAG may justify a higher PE ratio.
PEG (NY)4.89
PEG (5Y)0.84
EPS Next 2Y4.94%
EPS Next 3Y5.85%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. PAG Dividend Analysis

5.1 Amount

  • PAG has a Yearly Dividend Yield of 3.44%.
  • Compared to an average industry Dividend Yield of 3.36, PAG pays a better dividend. On top of this PAG pays more dividend than 85.37% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, PAG pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.44%

5.2 History

  • On average, the dividend of PAG grows each year by 43.72%, which is quite nice.
  • PAG has paid a dividend for at least 10 years, which is a reliable track record.
  • PAG has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)43.72%
Div Incr Years5
Div Non Decr Years5
PAG Yearly Dividends per sharePAG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • PAG pays out 36.75% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of PAG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.75%
EPS Next 2Y4.94%
EPS Next 3Y5.85%
PAG Yearly Income VS Free CF VS DividendPAG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
PAG Dividend Payout.PAG Dividend Payout, showing the Payout Ratio.PAG Dividend Payout.PayoutRetained Earnings

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PAG Fundamentals: All Metrics, Ratios and Statistics

PENSKE AUTOMOTIVE GROUP INC

NYSE:PAG (4/24/2026, 8:04:00 PM)

After market: 160.42 0 (0%)

160.42

+0.42 (+0.26%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-11
Earnings (Next)04-29
Inst Owners78.8%
Inst Owner Change0.01%
Ins Owners0.96%
Ins Owner Change2.23%
Market Cap10.55B
Revenue(TTM)31.81B
Net Income(TTM)935.40M
Analysts74.67
Price Target184.19 (14.82%)
Short Float %5%
Short Ratio8.42
Dividend
Industry RankSector Rank
Dividend Yield 3.44%
Yearly Dividend5.19
Dividend Growth(5Y)43.72%
DP36.75%
Div Incr Years5
Div Non Decr Years5
Ex-Date02-25
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.07%
Min EPS beat(2)-9.46%
Max EPS beat(2)-6.69%
EPS beat(4)2
Avg EPS beat(4)-2.1%
Min EPS beat(4)-9.46%
Max EPS beat(4)5.05%
EPS beat(8)4
Avg EPS beat(8)-0.38%
EPS beat(12)6
Avg EPS beat(12)-0.57%
EPS beat(16)10
Avg EPS beat(16)2.32%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)1.16%
Revenue beat(8)3
Avg Revenue beat(8)-1.04%
Revenue beat(12)6
Avg Revenue beat(12)-0.01%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)-0.56%
PT rev (3m)-0.26%
EPS NQ rev (1m)-7.7%
EPS NQ rev (3m)-12.01%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)-1.27%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.67%
Valuation
Industry RankSector Rank
PE 12.13
Fwd PE 11.83
P/S 0.33
P/FCF 16.21
P/OCF 10.82
P/B 1.9
P/tB 5.37
EV/EBITDA 8.69
EPS(TTM)13.23
EY8.25%
EPS(NY)13.56
Fwd EY8.45%
FCF(TTM)9.89
FCFY6.17%
OCF(TTM)14.83
OCFY9.24%
SpS483.78
BVpS84.6
TBVpS29.85
PEG (NY)4.89
PEG (5Y)0.84
Graham Number158.692 (-1.08%)
Profitability
Industry RankSector Rank
ROA 5.32%
ROE 16.82%
ROCE 11.32%
ROIC 6.22%
ROICexc 6.24%
ROICexgc 8.16%
OM 4.03%
PM (TTM) 2.94%
GM 16.4%
FCFM 2.05%
ROA(3y)6.02%
ROA(5y)7.33%
ROE(3y)19.41%
ROE(5y)24.13%
ROIC(3y)7.03%
ROIC(5y)7.75%
ROICexc(3y)7.07%
ROICexc(5y)7.8%
ROICexgc(3y)9.2%
ROICexgc(5y)10.16%
ROCE(3y)12.93%
ROCE(5y)13.88%
ROICexgc growth 3Y-11.55%
ROICexgc growth 5Y7.25%
ROICexc growth 3Y-11.66%
ROICexc growth 5Y6.67%
OM growth 3Y-9.03%
OM growth 5Y3.15%
PM growth 3Y-16%
PM growth 5Y2.02%
GM growth 3Y-1.94%
GM growth 5Y1.03%
F-Score6
Asset Turnover1.81
Health
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 9.62
Debt/EBITDA 4.06
Cap/Depr 188.39%
Cap/Sales 1.02%
Interest Coverage 4.67
Cash Conversion 67.11%
Profit Quality 69.54%
Current Ratio 0.99
Quick Ratio 0.22
Altman-Z 3.02
F-Score6
WACC6.92%
ROIC/WACC0.9
Cap/Depr(3y)230.41%
Cap/Depr(5y)223.6%
Cap/Sales(3y)1.15%
Cap/Sales(5y)1.09%
Profit Quality(3y)75.34%
Profit Quality(5y)79.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.78%
EPS 3Y-10.59%
EPS 5Y14.41%
EPS Q2Q%-20.06%
EPS Next Y2.48%
EPS Next 2Y4.94%
EPS Next 3Y5.85%
EPS Next 5Y8.51%
Revenue 1Y (TTM)4.44%
Revenue growth 3Y4.57%
Revenue growth 5Y9.24%
Sales Q2Q%0.64%
Revenue Next Year3.54%
Revenue Next 2Y3.93%
Revenue Next 3Y3.35%
Revenue Next 5Y4.41%
EBIT growth 1Y-2.74%
EBIT growth 3Y-4.87%
EBIT growth 5Y12.68%
EBIT Next Year17.28%
EBIT Next 3Y8.74%
EBIT Next 5Y4.47%
FCF growth 1Y-23.72%
FCF growth 3Y-17.92%
FCF growth 5Y-8.53%
OCF growth 1Y-20.76%
OCF growth 3Y-12.57%
OCF growth 5Y-4.09%

PENSKE AUTOMOTIVE GROUP INC / PAG Fundamental Analysis FAQ

What is the ChartMill fundamental rating of PENSKE AUTOMOTIVE GROUP INC (PAG) stock?

ChartMill assigns a fundamental rating of 5 / 10 to PAG.


What is the valuation status for PAG stock?

ChartMill assigns a valuation rating of 6 / 10 to PENSKE AUTOMOTIVE GROUP INC (PAG). This can be considered as Fairly Valued.


How profitable is PENSKE AUTOMOTIVE GROUP INC (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 12.13 and the Price/Book (PB) ratio is 1.9.


What is the financial health of PENSKE AUTOMOTIVE GROUP INC (PAG) stock?

The financial health rating of PENSKE AUTOMOTIVE GROUP INC (PAG) is 3 / 10.