PENSKE AUTOMOTIVE GROUP INC (PAG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAG - US70959W1036 - Common Stock
165.47 USD
+1.28 (+0.78%)
165.47 USD
0 (0%)
Taking everything into account, PAG scores 5 out of 10 in our fundamental rating. PAG was compared to 121 industry peers in the Specialty Retail industry. PAG has an average financial health and profitability rating. PAG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PAG had positive earnings in the past year.
In the past year PAG had a positive cash flow from operations.
PAG had positive earnings in each of the past 5 years.
PAG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PAG has a better Return On Assets (5.51%) than 72.73% of its industry peers.
PAG's Return On Equity of 16.53% is fine compared to the rest of the industry. PAG outperforms 75.21% of its industry peers.
The Return On Invested Capital of PAG (6.49%) is better than 61.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PAG is below the industry average of 12.26%.
| 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 has a Profit Margin of 3.08%. This is in the better half of the industry: PAG outperforms 68.59% of its industry peers.
In the last couple of years the Profit Margin of PAG has grown nicely.
With a decent Operating Margin value of 4.22%, PAG is doing good in the industry, outperforming 61.16% of the companies in the same industry.
PAG's Operating Margin has improved in the last couple of years.
PAG's Gross Margin of 16.54% is on the low side compared to the rest of the industry. PAG is outperformed by 82.64% 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.
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.
The debt/assets ratio for PAG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.08 indicates that PAG is not in any danger for bankruptcy at the moment.
The Altman-Z score of PAG (3.08) is better than 74.38% 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.
PAG has a Debt to FCF ratio of 7.32. This is in the better half of the industry: PAG outperforms 62.81% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that PAG is somewhat dependend on debt financing.
PAG has a Debt to Equity ratio (0.92) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.73
WACC8.94%
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.
With a Current ratio value of 0.97, PAG is not doing good in the industry: 75.21% of the companies in the same industry are doing better.
A Quick Ratio of 0.21 indicates that PAG may have some problems paying its short term obligations.
With a Quick ratio value of 0.21, PAG is not doing good in the industry: 86.78% of the companies in the same industry are doing better.
| 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
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
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
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
A Price/Earnings ratio of 11.87 indicates a reasonable valuation of PAG.
Compared to the rest of the industry, the Price/Earnings ratio of PAG indicates a somewhat cheap valuation: PAG is cheaper than 79.34% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.28, PAG is valued rather cheaply.
The Price/Forward Earnings ratio is 11.75, which indicates a very decent valuation of PAG.
Based on the Price/Forward Earnings ratio, PAG is valued a bit cheaper than the industry average as 77.69% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PAG to the average of the S&P500 Index (23.52), we can say PAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
66.12% of the companies in the same industry are more expensive than PAG, based on the Enterprise Value to EBITDA ratio.
76.86% 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 | 14.4 | ||
| EV/EBITDA | 8.42 |
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)39.64
PEG (5Y)0.57
EPS Next 2Y1.2%
EPS Next 3Y2.98%
5. Dividend
5.1 Amount
PAG has a Yearly Dividend Yield of 3.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.67, PAG pays a better dividend. On top of this PAG pays more dividend than 88.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, PAG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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 2Y1.2%
EPS Next 3Y2.98%
165.47
+1.28 (+0.78%)
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 Change-0.3%
Market Cap10.90B
Revenue(TTM)30.68B
Net Income(TTM)943.70M
Analysts72.86
Price Target182.86 (10.51%)
Short Float %3.85%
Short Ratio7.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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)-1.72%
EPS NQ rev (3m)-3.87%
EPS NY rev (1m)-2.16%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 11.75 | ||
| P/S | 0.36 | ||
| P/FCF | 14.4 | ||
| P/OCF | 10.19 | ||
| P/B | 1.91 | ||
| P/tB | 4.87 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)13.94
EY8.42%
EPS(NY)14.08
Fwd EY8.51%
FCF(TTM)11.49
FCFY6.95%
OCF(TTM)16.24
OCFY9.81%
SpS465.87
BVpS86.66
TBVpS34.01
PEG (NY)39.64
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 | 3.08 |
F-Score8
WACC8.94%
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 11.87 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.