PENSKE AUTOMOTIVE GROUP INC (PAG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAG - US70959W1036 - Common Stock
165.6 USD
-0.69 (-0.41%)
165.6 USD
0 (0%)
PAG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. PAG has an average financial health and profitability rating. PAG has a correct valuation and a medium growth rate. PAG also has an excellent dividend rating.
1. Profitability
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.
Each year in the past 5 years PAG had a positive operating cash flow.
1.2 Ratios
PAG's Return On Assets of 5.51% is fine compared to the rest of the industry. PAG outperforms 72.36% of its industry peers.
The Return On Equity of PAG (16.53%) is better than 74.80% of its industry peers.
PAG's Return On Invested Capital of 6.49% is fine compared to the rest of the industry. PAG outperforms 63.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAG is below the industry average of 12.17%.
| 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 69.11% of its industry peers.
In the last couple of years the Profit Margin of PAG has grown nicely.
PAG has a better Operating Margin (4.22%) than 61.79% of its industry peers.
In the last couple of years the Operating Margin of PAG has grown nicely.
PAG has a worse Gross Margin (16.54%) than 82.93% 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
PAG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PAG has less shares outstanding
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 3.09. This indicates that PAG is financially healthy and has little risk of bankruptcy at the moment.
PAG's Altman-Z score of 3.09 is fine compared to the rest of the industry. PAG outperforms 73.17% of its industry peers.
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.
The Debt to FCF ratio of PAG (7.32) is better than 61.79% of 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.
PAG has a Debt to Equity ratio of 0.92. This is comparable to the rest of the industry: PAG outperforms 43.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.73
WACC8.91%
2.3 Liquidity
A Current Ratio of 0.97 indicates that PAG may have some problems paying its short term obligations.
PAG's Current ratio of 0.97 is on the low side compared to the rest of the industry. PAG is outperformed by 77.24% of its industry peers.
A Quick Ratio of 0.21 indicates that PAG may have some problems paying its short term obligations.
PAG has a worse Quick ratio (0.21) than 87.80% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 20.82% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 2.25% in the past year.
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
The Earnings Per Share is expected to grow by 5.93% on average over the next years.
The Revenue is expected to grow by 3.66% on average over the next years.
EPS Next Y0.3%
EPS Next 2Y1.2%
EPS Next 3Y2.98%
EPS Next 5Y5.93%
Revenue Next Year0.94%
Revenue Next 2Y1.62%
Revenue Next 3Y2.2%
Revenue Next 5Y3.66%
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.
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 11.88 indicates a reasonable valuation of PAG.
83.74% of the companies in the same industry are more expensive than PAG, based on the Price/Earnings ratio.
PAG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
PAG is valuated reasonably with a Price/Forward Earnings ratio of 11.76.
PAG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PAG is cheaper than 78.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, PAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAG is valued a bit cheaper than 69.11% of the companies in the same industry.
PAG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PAG is cheaper than 77.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.41 | ||
| EV/EBITDA | 8.51 |
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.
PAG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)39.67
PEG (5Y)0.57
EPS Next 2Y1.2%
EPS Next 3Y2.98%
5. Dividend
5.1 Amount
PAG has a Yearly Dividend Yield of 3.12%.
PAG's Dividend Yield is rather good when compared to the industry average which is at 1.98. PAG pays more dividend than 87.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, PAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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.
PAG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.22%
EPS Next 2Y1.2%
EPS Next 3Y2.98%
165.6
-0.69 (-0.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners78.36%
Inst Owner Change0.69%
Ins Owners0.85%
Ins Owner Change0.09%
Market Cap10.91B
Revenue(TTM)30.68B
Net Income(TTM)943.70M
Analysts72.86
Price TargetN/A
Short Float %3.64%
Short Ratio7.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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)-0.42%
PT rev (3m)1.07%
EPS NQ rev (1m)-2.96%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)-2.16%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 11.76 | ||
| P/S | 0.36 | ||
| P/FCF | 14.41 | ||
| P/OCF | 10.2 | ||
| P/B | 1.91 | ||
| P/tB | 4.87 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)13.94
EY8.42%
EPS(NY)14.08
Fwd EY8.5%
FCF(TTM)11.49
FCFY6.94%
OCF(TTM)16.24
OCFY9.81%
SpS465.87
BVpS86.66
TBVpS34.01
PEG (NY)39.67
PEG (5Y)0.57
Graham Number164.86
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 | 3.09 |
F-Score8
WACC8.91%
ROIC/WACC0.73
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 Y0.3%
EPS Next 2Y1.2%
EPS Next 3Y2.98%
EPS Next 5Y5.93%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y6.02%
Revenue growth 5Y5.61%
Sales Q2Q%1.38%
Revenue Next Year0.94%
Revenue Next 2Y1.62%
Revenue Next 3Y2.2%
Revenue Next 5Y3.66%
EBIT growth 1Y0.53%
EBIT growth 3Y-0.98%
EBIT growth 5Y15.06%
EBIT Next Year17.66%
EBIT Next 3Y6.98%
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 11.88 and the Price/Book (PB) ratio is 1.91.
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.