PENSKE AUTOMOTIVE GROUP INC (PAG)
US70959W1036 - Common Stock
We assign a fundamental rating of 5 out of 10 to PAG. PAG was compared to 126 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 decent growth rate and is not valued too expensively.
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.
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
The Return On Assets of PAG (6.01%) is better than 70.63% of its industry peers.
PAG's Return On Equity of 20.14% is fine compared to the rest of the industry. PAG outperforms 78.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.12%, PAG is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PAG is significantly below the industry average of 13.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 20.14% | ||
| ROIC | 7.12% |
ROA(3y)8.44%
ROA(5y)6.51%
ROE(3y)28.25%
ROE(5y)23.36%
ROIC(3y)8.36%
ROIC(5y)6.69%
1.3 Margins
PAG has a Profit Margin of 3.27%. This is in the better half of the industry: PAG outperforms 67.46% of its industry peers.
PAG's Profit Margin has improved in the last couple of years.
The Operating Margin of PAG (4.54%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PAG has grown nicely.
Looking at the Gross Margin, with a value of 16.62%, PAG is doing worse than 85.71% of the companies in the same industry.
In the last couple of years the Gross Margin of PAG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.54% | ||
| PM (TTM) | 3.27% | ||
| GM | 16.62% |
OM growth 3Y10.99%
OM growth 5Y10.07%
PM growth 3Y10.26%
PM growth 5Y11.53%
GM growth 3Y2.36%
GM growth 5Y2.2%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PAG is creating some value.
PAG has less shares outstanding than it did 1 year ago.
PAG has less shares outstanding than it did 5 years ago.
PAG has a worse debt/assets ratio than last year.
2.2 Solvency
PAG has an Altman-Z score of 3.11. This indicates that PAG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PAG (3.11) is better than 68.25% of its industry peers.
The Debt to FCF ratio of PAG is 6.41, which is on the high side as it means it would take PAG, 6.41 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.41, PAG perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
PAG has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PAG (1.10) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 6.41 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.88
WACC8.09%
2.3 Liquidity
PAG has a Current Ratio of 0.98. 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 0.98. This is amonst the worse of the industry: PAG underperforms 83.33% of its industry peers.
PAG has a Quick Ratio of 0.98. 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 worse Quick ratio (0.23) than 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
PAG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.11%.
Measured over the past years, PAG shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.68% on average per year.
PAG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.17%.
The Revenue has been growing slightly by 5.32% on average over the past years.
EPS 1Y (TTM)-17.11%
EPS 3Y33.58%
EPS 5Y24.68%
EPS growth Q2Q-25.99%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y13.04%
Revenue growth 5Y5.32%
Revenue growth Q2Q1.48%
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 2.77% on average per year.
Based on estimates for the next years, PAG will show a small growth in Revenue. The Revenue will grow by 5.52% on average per year.
EPS Next Y-10.79%
EPS Next 2Y-3.77%
EPS Next 3Y-0.28%
EPS Next 5Y2.77%
Revenue Next Year3.93%
Revenue Next 2Y3.57%
Revenue Next 3Y4.79%
Revenue Next 5Y5.52%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.44, which indicates a very decent valuation of PAG.
Based on the Price/Earnings ratio, PAG is valued cheaply inside the industry as 82.54% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.15. PAG is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.49 indicates a reasonable valuation of PAG.
81.75% of the companies in the same industry are more expensive than PAG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PAG to the average of the S&P500 Index (20.20), we can say PAG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 10.49 |
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 67.46% of the companies listed 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 77.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.14 | ||
| EV/EBITDA | 8.23 |
4.3 Compensation for Growth
PAG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-3.77%
EPS Next 3Y-0.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.14%, PAG has a reasonable but not impressive dividend return.
PAG's Dividend Yield is rather good when compared to the industry average which is at 3.36. PAG pays more dividend than 84.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PAG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
The dividend of PAG is nicely growing with an annual growth rate of 14.30%!
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)14.3%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
21.17% 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.
DP21.17%
EPS Next 2Y-3.77%
EPS Next 3Y-0.28%
PENSKE AUTOMOTIVE GROUP INC
NYSE:PAG (5/17/2024, 7:18:31 PM)
After market: 156.25 0 (0%)156.25
-3.49 (-2.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Dividend Growth(5Y)
DP
Div Incr Years
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Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 10.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 20.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.54% | ||
| PM (TTM) | 3.27% | ||
| GM | 16.62% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-17.11%
EPS 3Y33.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.17%
Revenue growth 3Y13.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y