PENSKE AUTOMOTIVE GROUP INC (PAG) Stock Fundamental Analysis
NYSE:PAG - US70959W1036 - Common Stock
187.63 USD
+1.05 (+0.56%)
187.63 USD
0 (0%)
Overall PAG gets a fundamental rating of 4 out of 10. We evaluated PAG against 123 industry peers in the Specialty Retail industry. PAG has a medium profitability rating, but doesn't score so well on its financial health evaluation. PAG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PAG was profitable.
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 has a Return On Assets of 5.50%. This is in the better half of the industry: PAG outperforms 71.54% of its industry peers.
With a decent Return On Equity value of 17.04%, PAG is doing good in the industry, outperforming 76.42% of the companies in the same industry.
PAG has a Return On Invested Capital of 6.70%. This is in the better half of the industry: PAG outperforms 65.04% 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 11.99%.
| 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
PAG has a better Profit Margin (3.13%) than 69.11% of its industry peers.
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 62.60% of its industry peers.
PAG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 16.58%, PAG is not doing good in the industry: 83.74% of the companies in the same industry are doing better.
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
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
The number of shares outstanding for PAG has been reduced compared to 5 years ago.
PAG has a worse debt/assets ratio than last year.
2.2 Solvency
PAG has an Altman-Z score of 3.06. This indicates that PAG is financially healthy and has little risk of bankruptcy at the moment.
PAG has a Altman-Z score of 3.06. This is in the better half of the industry: PAG outperforms 68.29% of its industry peers.
The Debt to FCF ratio of PAG is 9.30, which is on the high side as it means it would take PAG, 9.30 years of fcf income to pay off 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.
With a Debt to Equity ratio value of 0.91, PAG perfoms like the industry average, outperforming 40.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.76
WACC8.76%
2.3 Liquidity
A Current Ratio of 0.90 indicates that PAG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.90, PAG is doing worse than 78.86% of the companies in the same industry.
PAG has a Quick 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's Quick ratio of 0.21 is on the low side compared to the rest of the industry. PAG is outperformed by 88.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
PAG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.63%.
Measured over the past years, PAG shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.82% on average per year.
Looking at the last year, PAG shows a small growth in Revenue. The Revenue has grown by 2.39% in the last year.
PAG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.61% yearly.
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
PAG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.96% yearly.
Based on estimates for the next years, PAG will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.
EPS Next Y2.75%
EPS Next 2Y2.14%
EPS Next 3Y3.04%
EPS Next 5Y5.96%
Revenue Next Year1.14%
Revenue Next 2Y2.49%
Revenue Next 3Y3.1%
Revenue Next 5Y3.77%
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 13.31, which indicates a correct valuation of PAG.
PAG's Price/Earnings ratio is rather cheap when compared to the industry. PAG is cheaper than 81.30% of the companies in the same industry.
PAG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.06.
A Price/Forward Earnings ratio of 13.08 indicates a correct valuation of PAG.
77.24% of the companies in the same industry are more expensive than PAG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.69. PAG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 13.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAG is valued a bit cheaper than 61.79% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAG indicates a somewhat cheap valuation: PAG is cheaper than 76.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.16 | ||
| EV/EBITDA | 9.48 |
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)4.84
PEG (5Y)0.64
EPS Next 2Y2.14%
EPS Next 3Y3.04%
5. Dividend
5.1 Amount
PAG has a Yearly Dividend Yield of 2.67%.
Compared to an average industry Dividend Yield of 5.22, PAG pays a better dividend. On top of this PAG pays more dividend than 88.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, PAG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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 33.11% 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.
DP33.11%
EPS Next 2Y2.14%
EPS Next 3Y3.04%
187.63
+1.05 (+0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners76.68%
Inst Owner Change3.09%
Ins Owners0.85%
Ins Owner Change-5.87%
Market Cap12.39B
Analysts71.43
Price Target180.93 (-3.57%)
Short Float %2.69%
Short Ratio5.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)1.43%
PT rev (3m)3.27%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)0.65%
EPS NY rev (1m)1%
EPS NY rev (3m)2.52%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 13.08 | ||
| P/S | 0.41 | ||
| P/FCF | 19.16 | ||
| P/OCF | 12.89 | ||
| P/B | 2.21 | ||
| P/tB | 5.75 | ||
| EV/EBITDA | 9.48 |
EPS(TTM)14.1
EY7.51%
EPS(NY)14.35
Fwd EY7.65%
FCF(TTM)9.79
FCFY5.22%
OCF(TTM)14.55
OCFY7.76%
SpS463.01
BVpS85
TBVpS32.6
PEG (NY)4.84
PEG (5Y)0.64
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 | 3.06 |
F-Score7
WACC8.76%
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 Y2.75%
EPS Next 2Y2.14%
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 Year1.14%
Revenue Next 2Y2.49%
Revenue Next 3Y3.1%
Revenue Next 5Y3.77%
EBIT growth 1Y0.87%
EBIT growth 3Y-0.98%
EBIT growth 5Y15.06%
EBIT Next Year19.14%
EBIT Next 3Y4.67%
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%