PENSKE AUTOMOTIVE GROUP INC (PAG) Stock Fundamental Analysis
USA - NYSE:PAG - US70959W1036 - Common Stock
156.45 USD
+0.7 (+0.45%)
156.45 USD
0 (0%)
Taking everything into account, PAG scores 5 out of 10 in our fundamental rating. PAG was compared to 122 industry peers in the Specialty Retail industry. Both the profitability and the financial health of PAG get a neutral evaluation. Nothing too spectacular is happening here. PAG is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years PAG has always been profitable.
Each year in the past 5 years PAG had a positive operating cash flow.
1.2 Ratios
PAG has a better Return On Assets (5.51%) than 72.95% of its industry peers.
PAG has a better Return On Equity (16.53%) 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 11.81%.
| 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.
With a decent Operating Margin value of 4.22%, PAG is doing good in the industry, outperforming 61.48% of the companies in the same industry.
PAG's Operating Margin has improved in the last couple of years.
PAG has a Gross Margin of 16.54%. This is amonst the worse of the industry: PAG underperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PAG is destroying value.
Compared to 1 year ago, PAG has less shares outstanding
Compared to 5 years ago, PAG has less shares outstanding
The debt/assets ratio for PAG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.06 indicates that PAG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.06, PAG is in the better half of the industry, outperforming 71.31% of the companies in the same industry.
PAG has a debt to FCF ratio of 7.32. This is a slightly negative value and a sign of low solvency as PAG would need 7.32 years to pay back of 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 60.66% 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.
The Debt to Equity ratio of PAG (0.92) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.76
WACC8.57%
2.3 Liquidity
A Current Ratio of 0.97 indicates that PAG may have some problems paying its short term obligations.
PAG has a Current ratio of 0.97. This is in the lower half of the industry: PAG underperforms 75.41% 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 88.52% 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%.
PAG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.82% yearly.
Looking at the last year, PAG shows a small growth in Revenue. The Revenue has grown by 2.25% in the last 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.
PAG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.66% yearly.
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
The Price/Earnings ratio is 11.22, which indicates a very decent valuation of PAG.
80.33% of the companies in the same industry are more expensive than PAG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.51, PAG is valued rather cheaply.
The Price/Forward Earnings ratio is 10.93, 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 73.77% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.98. PAG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.22 | ||
| Fwd PE | 10.93 |
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 64.75% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PAG is valued a bit cheaper than 77.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.65 | ||
| EV/EBITDA | 8.09 |
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)4.47
PEG (5Y)0.54
EPS Next 2Y2.02%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
PAG has a Yearly Dividend Yield of 3.24%.
PAG's Dividend Yield is rather good when compared to the industry average which is at 5.60. PAG pays more dividend than 87.70% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, PAG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
On average, the dividend of PAG grows each year by 21.07%, 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 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.
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%
156.45
+0.7 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change0.78%
Ins Owners0.85%
Ins Owner Change-45.69%
Market Cap10.33B
Revenue(TTM)30.68B
Net Income(TTM)943.70M
Analysts72.31
Price Target183.63 (17.37%)
Short Float %3.62%
Short Ratio7.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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)-0.58%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)-1.95%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.22 | ||
| Fwd PE | 10.93 | ||
| P/S | 0.34 | ||
| P/FCF | 13.65 | ||
| P/OCF | 9.66 | ||
| P/B | 1.81 | ||
| P/tB | 4.61 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)13.94
EY8.91%
EPS(NY)14.31
Fwd EY9.15%
FCF(TTM)11.46
FCFY7.33%
OCF(TTM)16.2
OCFY10.35%
SpS464.6
BVpS86.42
TBVpS33.91
PEG (NY)4.47
PEG (5Y)0.54
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
WACC8.57%
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)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 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 11.22 and the Price/Book (PB) ratio is 1.81.
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.