(PAG) Penske Automotive - Overview
Sector: Consumer Cyclical | Industry: Auto & Truck Dealerships | Exchange: NYSE (USA) | Market Cap: 10.831m USD | Total Return: 6.6% in 12m
Avg Turnover: 45.2M
EPS Trend: -89.8%
Qual. Beats: 1
Rev. Trend: 96.7%
Qual. Beats: 0
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
Penske Automotive Group (PAG) is a global transportation services provider operating retail automotive and commercial truck dealerships across North America, Europe, and Asia-Pacific. The company’s business model is diversified across four primary segments: Retail Automotive, Retail Commercial Truck, Non-Automotive Investments, and Other. Beyond vehicle sales, the firm generates recurring revenue through high-margin maintenance, collision repair services, and the distribution of heavy-duty power systems.
The automotive retail sector typically relies on franchise agreements with original equipment manufacturers (OEMs), which grant dealers exclusive rights to sell specific brands within defined geographic territories. PAG further mitigates cyclical volatility in new vehicle sales by offering integrated finance and insurance (F&I) products and aftermarket parts distribution. For a deeper dive into the companys valuation metrics, consider reviewing the latest data on ValueRay. Headquartered in Michigan, the company maintains a significant international footprint, including distribution rights for commercial brands like Freightliner, Western Star, and MAN.
- Luxury vehicle demand and brand mix stability drive retail automotive margins
- Used vehicle pricing volatility impacts inventory turnover and gross profit per unit
- High-margin parts and service revenue offsets cyclical slowdowns in new vehicle sales
- Penske Transportation Solutions equity income fluctuates with commercial freight market demand
- Regional economic performance in the United Kingdom impacts international revenue and earnings
| Net Income: 925.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -1.81 > 1.0 |
| NWC/Revenue: -0.73% < 20% (prev -2.12%; Δ 1.39% < -1%) |
| CFO/TA 0.04 > 3% & CFO 775.3m > Net Income 925.6m |
| Net Debt (11.6b) to EBITDA (1.59b): 7.27 < 3 |
| Current Ratio: 0.96 > 1.5 & < 3 |
| Outstanding Shares: last quarter (65.8m) vs 12m ago -1.50% < -2% |
| Gross Margin: 16.36% > 18% (prev 0.16%; Δ 1.62k% > 0.5%) |
| Asset Turnover: 181.9% > 50% (prev 180.8%; Δ 1.15% > 0%) |
| Interest Coverage Ratio: 6.37 > 6 (EBITDA TTM 1.59b / Interest Expense TTM 222.0m) |
| A: -0.01 (Total Current Assets 6.32b - Total Current Liabilities 6.55b) / Total Assets 18.3b |
| B: 0.32 (Retained Earnings 5.87b / Total Assets 18.3b) |
| C: 0.08 (EBIT TTM 1.41b / Avg Total Assets 17.6b) |
| D: 0.45 (Book Value of Equity 5.66b / Total Liabilities 12.6b) |
| Altman-Z'' = 1.97 = BBB |
| DSRI: 0.86 (Receivables 1.08b/1.20b, Revenue 32.1b/30.6b) |
| GMI: 1.01 (GM 16.36% / 16.45%) |
| AQI: 1.07 (AQ_t 0.34 / AQ_t-1 0.32) |
| SGI: 1.05 (Revenue 32.1b / 30.6b) |
| TATA: 0.01 (NI 925.6m - CFO 775.3m) / TA 18.3b) |
| Beneish M = -3.05 (Cap -4..+1) = AA |
As of May 31, 2026, the stock is trading at USD 167.37 with a total of 193,849 shares traded.
Over the past week, the price has changed by +4.38%,
over one month by -1.66%,
over three months by +7.17% and
over the past year by +6.59%.
Penske Automotive has received a consensus analysts rating of 3.73. Therefore, it is recommended to hold PAG.
- StrongBuy: 4
- Buy: 1
- Hold: 5
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 185.8 | 11% |
P/E Trailing = 11.9025
P/E Forward = 12.1065
P/S = 0.3415
P/B = 1.8775
P/EG = 2.0518
Revenue TTM = 32.1b USD
EBIT TTM = 1.41b USD
EBITDA TTM = 1.59b USD
Long Term Debt = 2.21b USD (from longTermDebt, last quarter)
Short Term Debt = 4.57b USD (from shortTermDebt, last quarter)
Debt = 11.6b USD (from shortLongTermDebtTotal, last quarter) + Leases 2.43b
Net Debt = 11.6b USD (calculated: Debt 11.6b - CCE 83.7m)
Enterprise Value = 22.4b USD (10.8b + Debt 11.6b - CCE 83.7m)
Interest Coverage Ratio = 6.37 (Ebit TTM 1.41b / Interest Expense TTM 222.0m)
EV/FCF = 48.18x (Enterprise Value 22.4b / FCF TTM 464.7m)
FCF Yield = 2.08% (FCF TTM 464.7m / Enterprise Value 22.4b)
FCF Margin = 1.45% (FCF TTM 464.7m / Revenue TTM 32.1b)
Net Margin = 2.89% (Net Income TTM 925.6m / Revenue TTM 32.1b)
Gross Margin = 16.36% ((Revenue TTM 32.1b - Cost of Revenue TTM 26.8b) / Revenue TTM)
Gross Margin QoQ = 16.52% (prev 15.85%)
Tobins Q-Ratio = 1.22 (Enterprise Value 22.4b / Total Assets 18.3b)
Interest Expense / Debt = 1.91% (Interest Expense 222.0m / Debt 11.6b)
Taxrate = 27.56% (89.2m / 323.7m)
NOPAT = 1.02b (EBIT 1.41b * (1 - 27.56%))
Current Ratio = 0.96 (Total Current Assets 6.32b / Total Current Liabilities 6.55b)
Debt / Equity = 2.05 (Debt 11.6b / totalStockholderEquity, last quarter 5.68b)
Debt / EBITDA = 7.27 (Net Debt 11.6b / EBITDA 1.59b)
Debt / FCF = 24.88 (Net Debt 11.6b / FCF TTM 464.7m)
Total Stockholder Equity = 5.64b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.25% (Net Income 925.6m / Total Assets 18.3b)
RoE = 16.41% (Net Income TTM 925.6m / Total Stockholder Equity 5.64b)
RoCE = 18.00% (EBIT 1.41b / Capital Employed (Equity 5.64b + L.T.Debt 2.21b))
RoIC = 6.27% (NOPAT 1.02b / Invested Capital 16.3b)
WACC = 4.83% (E(10.8b)/V(22.5b) * Re(8.54%) + D(11.6b)/V(22.5b) * Rd(1.91%) * (1-Tc(0.28)))
Discount Rate = 8.54% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.89 | Cagr: -0.93%
[DCF] Terminal Value 73.10% ; FCFF base≈573.5m ; Y1≈502.9m ; Y5≈406.3m
[DCF] Fair Price = N/A (negative equity: EV 6.52b - Net Debt 11.6b = -5.04b; debt exceeds intrinsic value)
EPS Correlation: -89.79 | EPS CAGR: -9.19% | SUE: 0.88 | # QB: 1
Revenue Correlation: 96.75 | Revenue CAGR: 3.51% | SUE: 0.25 | # QB: 0
EPS current Quarter (2026-06-30): EPS=3.42 | Chg30d=-1.54% | Revisions=-45% | Analysts=8
EPS next Quarter (2026-09-30): EPS=3.48 | Chg30d=+1.10% | Revisions=+9% | Analysts=8
EPS current Year (2026-12-31): EPS=13.40 | Chg30d=+0.17% | Revisions=+17% | GrowthEPS=+1.2% | GrowthRev=+5.1%
EPS next Year (2027-12-31): EPS=14.08 | Chg30d=+0.96% | Revisions=-14% | GrowthEPS=+4.7% | GrowthRev=+3.5%
[Analyst] Revisions Ratio: -45%