PENSKE AUTOMOTIVE GROUP INC (PAG) Stock Fundamental Analysis
USA - NYSE:PAG - US70959W1036 - Common Stock
170.605 USD
-0.41 (-0.24%)
PAG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 120 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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PAG was profitable.
In the past year PAG had a positive cash flow from operations.
Each year in the past 5 years PAG has been profitable.
Each year in the past 5 years PAG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.50%, PAG is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
PAG's Return On Equity of 17.04% is fine compared to the rest of the industry. PAG outperforms 76.67% of its industry peers.
PAG has a Return On Invested Capital of 6.70%. This is in the better half of the industry: PAG outperforms 65.83% of its industry peers.
PAG had an Average Return On Invested Capital over the past 3 years of 7.78%. This is below the industry average of 12.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 17.04% | ||
| ROIC | 6.7% |
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
Looking at the Profit Margin, with a value of 3.13%, PAG is in the better half of the industry, outperforming 69.17% of the companies in the same industry.
PAG's Profit Margin has improved in the last couple of years.
PAG has a Operating Margin of 4.30%. This is in the better half of the industry: PAG outperforms 61.67% of its industry peers.
In the last couple of years the Operating Margin of PAG has grown nicely.
PAG has a Gross Margin of 16.58%. This is amonst the worse of the industry: PAG underperforms 84.17% of its industry peers.
In the last couple of years the Gross Margin of PAG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.3% | ||
| PM (TTM) | 3.13% | ||
| GM | 16.58% |
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.
Compared to 1 year ago, PAG has less shares outstanding
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.
2.2 Solvency
An Altman-Z score of 3.00 indicates that PAG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.00, PAG is doing good in the industry, outperforming 69.17% of the companies in the same industry.
PAG has a debt to FCF ratio of 9.30. This is a negative value and a sign of low solvency as PAG would need 9.30 years to pay back of all of its debts.
PAG has a Debt to FCF ratio (9.30) which is in line with its industry peers.
PAG has a Debt/Equity ratio of 0.91. This is a neutral value indicating PAG is somewhat dependend on debt financing.
The Debt to Equity ratio of PAG (0.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | 3 |
ROIC/WACC0.76
WACC8.83%
2.3 Liquidity
PAG has a Current Ratio of 0.90. 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 Current ratio of 0.90. This is in the lower half of the industry: PAG underperforms 79.17% of its industry peers.
A Quick Ratio of 0.21 indicates that PAG may have some problems paying its short term obligations.
The Quick ratio of PAG (0.21) is worse than 89.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The earnings per share for PAG have decreased by -0.63% in the last year.
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 2.39% 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)-0.63%
EPS 3Y-3.27%
EPS 5Y20.82%
EPS Q2Q%4.71%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y6.02%
Revenue growth 5Y5.61%
Sales Q2Q%-0.45%
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 5.96% on average per year.
The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y3.13%
EPS Next 2Y2.23%
EPS Next 3Y3.04%
EPS Next 5Y5.96%
Revenue Next Year1.37%
Revenue Next 2Y2.56%
Revenue Next 3Y3.11%
Revenue Next 5Y3.77%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.10, PAG is valued correctly.
Based on the Price/Earnings ratio, PAG is valued cheaper than 80.83% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.53. PAG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.87, the valuation of PAG can be described as very reasonable.
PAG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PAG is cheaper than 75.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.04. PAG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAG is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
PAG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PAG is cheaper than 75.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.42 | ||
| EV/EBITDA | 8.74 |
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)3.87
PEG (5Y)0.58
EPS Next 2Y2.23%
EPS Next 3Y3.04%
5. Dividend
5.1 Amount
PAG has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.63, PAG pays a better dividend. On top of this PAG pays more dividend than 85.83% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, PAG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of PAG is nicely growing with an annual growth rate of 21.07%!
PAG has paid a dividend for at least 10 years, which is 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 33.11% 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.
DP33.11%
EPS Next 2Y2.23%
EPS Next 3Y3.04%
NYSE:PAG (10/16/2025, 2:48:52 PM)
170.605
-0.41 (-0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change-0.07%
Ins Owners0.85%
Ins Owner Change-5.82%
Market Cap11.27B
Analysts72.31
Price Target183.63 (7.63%)
Short Float %2.63%
Short Ratio6.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend4.1
Dividend Growth(5Y)21.07%
DP33.11%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.88%
Min EPS beat(2)2.72%
Max EPS beat(2)5.05%
EPS beat(4)3
Avg EPS beat(4)3.17%
Min EPS beat(4)-1.64%
Max EPS beat(4)6.57%
EPS beat(8)4
Avg EPS beat(8)0.21%
EPS beat(12)8
Avg EPS beat(12)1.58%
EPS beat(16)12
Avg EPS beat(16)5.29%
Revenue beat(2)0
Avg Revenue beat(2)-3.17%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)-2.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.88%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)0.87%
Revenue beat(8)3
Avg Revenue beat(8)-0.84%
Revenue beat(12)7
Avg Revenue beat(12)0.66%
Revenue beat(16)10
Avg Revenue beat(16)0.98%
PT rev (1m)1.49%
PT rev (3m)3.52%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)0.37%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 11.87 | ||
| P/S | 0.37 | ||
| P/FCF | 17.42 | ||
| P/OCF | 11.72 | ||
| P/B | 2.01 | ||
| P/tB | 5.23 | ||
| EV/EBITDA | 8.74 |
EPS(TTM)14.1
EY8.26%
EPS(NY)14.37
Fwd EY8.42%
FCF(TTM)9.79
FCFY5.74%
OCF(TTM)14.55
OCFY8.53%
SpS463.01
BVpS85
TBVpS32.6
PEG (NY)3.87
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 17.04% | ||
| ROCE | 12.64% | ||
| ROIC | 6.7% | ||
| ROICexc | 6.77% | ||
| ROICexgc | 8.9% | ||
| OM | 4.3% | ||
| PM (TTM) | 3.13% | ||
| GM | 16.58% | ||
| FCFM | 2.11% |
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%
ROICexcg growth 3Y-7.25%
ROICexcg 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-Score7
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 9.3 | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 192.18% | ||
| Cap/Sales | 1.03% | ||
| Interest Coverage | 4.77 | ||
| Cash Conversion | 65.01% | ||
| Profit Quality | 67.59% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 3 |
F-Score7
WACC8.83%
ROIC/WACC0.76
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)-0.63%
EPS 3Y-3.27%
EPS 5Y20.82%
EPS Q2Q%4.71%
EPS Next Y3.13%
EPS Next 2Y2.23%
EPS Next 3Y3.04%
EPS Next 5Y5.96%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y6.02%
Revenue growth 5Y5.61%
Sales Q2Q%-0.45%
Revenue Next Year1.37%
Revenue Next 2Y2.56%
Revenue Next 3Y3.11%
Revenue Next 5Y3.77%
EBIT growth 1Y0.87%
EBIT growth 3Y-0.98%
EBIT growth 5Y15.06%
EBIT Next Year20.23%
EBIT Next 3Y4.91%
EBIT Next 5Y3.46%
FCF growth 1Y-24.31%
FCF growth 3Y-8.08%
FCF growth 5Y24.3%
OCF growth 1Y-18.85%
OCF growth 3Y-3.02%
OCF growth 5Y17.87%