PENSKE AUTOMOTIVE GROUP INC (PAG) Stock Fundamental Analysis
USA - NYSE:PAG - US70959W1036 - Common Stock
158.64 USD
+3.78 (+2.44%)
159.29 USD
+0.65 (+0.41%)
Overall PAG gets a fundamental rating of 5 out of 10. We evaluated PAG against 122 industry peers in the Specialty Retail industry. There are concerns on the financial health of PAG while its profitability can be described as average. 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.
PAG had positive earnings in each of the past 5 years.
Each year in the past 5 years PAG had a positive operating cash flow.
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.
The Return On Equity of PAG (16.53%) is better than 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 11.82%.
| 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
PAG's Profit Margin of 3.08% is fine compared to the rest of the industry. PAG outperforms 68.85% of its industry peers.
PAG's Profit Margin has improved in the last couple of years.
The Operating Margin of PAG (4.22%) is better than 61.48% of its industry peers.
PAG's Operating Margin has improved in the last couple of years.
PAG has a worse Gross Margin (16.54%) than 83.61% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PAG is destroying value.
The number of shares outstanding for PAG has been reduced compared to 1 year ago.
Compared to 5 years ago, PAG has less shares outstanding
PAG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.06 indicates that PAG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.06, PAG is doing good in the industry, outperforming 69.67% of the companies in the same industry.
The Debt to FCF ratio of PAG is 7.32, which is on the high side as it means it would take PAG, 7.32 years of fcf income to pay off all of its debts.
PAG has a Debt to FCF ratio (7.32) which is in line with its industry peers.
PAG has a Debt/Equity ratio of 0.92. This is a neutral value indicating PAG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, PAG is in line with its industry, outperforming 45.08% 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
WACC8.61%
2.3 Liquidity
A Current Ratio of 0.97 indicates that PAG may have some problems paying its short term obligations.
PAG has a worse Current ratio (0.97) than 75.41% of its industry peers.
A Quick Ratio of 0.21 indicates that PAG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.21, PAG is doing worse than 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
PAG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.05%.
PAG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.82% yearly.
PAG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.25%.
Measured over the past years, PAG shows a small growth in Revenue. The Revenue has been growing by 5.61% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.38 indicates a reasonable valuation of PAG.
Based on the Price/Earnings ratio, PAG is valued cheaply inside the industry as 80.33% of the companies are valued more expensively.
PAG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
The Price/Forward Earnings ratio is 11.08, which indicates a very decent valuation of PAG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAG indicates a somewhat cheap valuation: PAG is cheaper than 77.87% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PAG to the average of the S&P500 Index (32.68), we can say PAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 11.08 |
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 65.57% of the companies listed in the same industry.
78.69% 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 | 13.84 | ||
| EV/EBITDA | 8.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PAG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.53
PEG (5Y)0.55
EPS Next 2Y2.02%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.34%, PAG has a reasonable but not impressive dividend return.
PAG's Dividend Yield is rather good when compared to the industry average which is at 5.39. PAG pays more dividend than 89.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, PAG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
The dividend of PAG is nicely growing with an annual growth rate of 21.07%!
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
PAG pays out 35.22% 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.
DP35.22%
EPS Next 2Y2.02%
EPS Next 3Y3.36%
158.64
+3.78 (+2.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change-0.32%
Ins Owners0.85%
Ins Owner Change-5.82%
Market Cap10.48B
Revenue(TTM)30.68B
Net Income(TTM)943.70M
Analysts72.31
Price Target183.63 (15.75%)
Short Float %3.23%
Short Ratio7.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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)-1.24%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)-1.95%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 11.08 | ||
| P/S | 0.34 | ||
| P/FCF | 13.84 | ||
| P/OCF | 9.79 | ||
| P/B | 1.84 | ||
| P/tB | 4.68 | ||
| EV/EBITDA | 8.18 |
EPS(TTM)13.94
EY8.79%
EPS(NY)14.31
Fwd EY9.02%
FCF(TTM)11.46
FCFY7.23%
OCF(TTM)16.2
OCFY10.21%
SpS464.6
BVpS86.42
TBVpS33.91
PEG (NY)4.53
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
WACC8.61%
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 7 / 10 to PENSKE AUTOMOTIVE GROUP INC (PAG). This can be considered as Undervalued.
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 11.38 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.