PENSKE AUTOMOTIVE GROUP INC (PAG) Stock Fundamental Analysis
USA - NYSE:PAG - US70959W1036 - Common Stock
171.74 USD
+0.89 (+0.52%)
171.74 USD
0 (0%)
Overall PAG gets a fundamental rating of 5 out of 10. We evaluated PAG against 122 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PAG had positive earnings in the past year.
PAG had a positive operating cash flow in the past year.
Each year in the past 5 years PAG has been profitable.
PAG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PAG has a better Return On Assets (5.50%) than 73.77% of its industry peers.
PAG's Return On Equity of 17.04% is fine compared to the rest of the industry. PAG outperforms 77.05% of its industry peers.
PAG has a better Return On Invested Capital (6.70%) than 66.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PAG is below the industry average of 11.93%.
| 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
Looking at the Profit Margin, with a value of 3.13%, PAG is in the better half of the industry, outperforming 69.67% of the companies in the same industry.
PAG's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 4.30%, PAG is doing good in the industry, outperforming 63.11% of the companies in the same industry.
In the last couple of years the Operating Margin of PAG has grown nicely.
PAG's Gross Margin of 16.58% is on the low side compared to the rest of the industry. PAG is outperformed by 83.61% of its industry peers.
PAG's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PAG is destroying value.
PAG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PAG has less shares outstanding
PAG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.00 indicates that PAG is not in any danger for bankruptcy at the moment.
PAG has a Altman-Z score of 3.00. This is in the better half of the industry: PAG outperforms 68.03% 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's Debt to FCF ratio of 9.30 is in line compared to the rest of the industry. PAG outperforms 56.56% of 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.
Looking at the Debt to Equity ratio, with a value of 0.91, PAG is in line with its industry, outperforming 41.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | 3 |
ROIC/WACC0.74
WACC9.02%
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 78.69% 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 88.52% 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%.
The Earnings Per Share has been growing by 20.82% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 2.39% in the past 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.
PAG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.77% yearly.
EPS Next Y3.13%
EPS Next 2Y2.23%
EPS Next 3Y3.04%
EPS Next 5Y5.96%
Revenue Next Year1.22%
Revenue Next 2Y2.51%
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.
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
Based on the Price/Earnings ratio of 12.18, the valuation of PAG can be described as correct.
Based on the Price/Earnings ratio, PAG is valued cheaply inside the industry as 81.15% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.54, PAG is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.95, the valuation of PAG can be described as very reasonable.
PAG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PAG is cheaper than 78.69% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, PAG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 11.95 |
4.2 Price Multiples
64.75% of the companies in the same industry are more expensive than PAG, based on the Enterprise Value to EBITDA ratio.
PAG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PAG is cheaper than 77.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.54 | ||
| EV/EBITDA | 8.77 |
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.
The decent profitability rating of PAG may justify a higher PE ratio.
PEG (NY)3.89
PEG (5Y)0.58
EPS Next 2Y2.23%
EPS Next 3Y3.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.87%, 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 5.56. PAG pays more dividend than 87.70% of the companies in the same industry.
PAG's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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
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 2Y2.23%
EPS Next 3Y3.04%
171.74
+0.89 (+0.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change3.08%
Ins Owners0.85%
Ins Owner Change-5.82%
Market Cap11.34B
Analysts71.43
Price Target180.93 (5.35%)
Short Float %2.64%
Short Ratio6.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)0%
PT rev (3m)2%
EPS NQ rev (1m)0.97%
EPS NQ rev (3m)1.42%
EPS NY rev (1m)0.37%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 11.95 | ||
| P/S | 0.37 | ||
| P/FCF | 17.54 | ||
| P/OCF | 11.8 | ||
| P/B | 2.02 | ||
| P/tB | 5.27 | ||
| EV/EBITDA | 8.77 |
EPS(TTM)14.1
EY8.21%
EPS(NY)14.37
Fwd EY8.37%
FCF(TTM)9.79
FCFY5.7%
OCF(TTM)14.55
OCFY8.47%
SpS463.01
BVpS85
TBVpS32.6
PEG (NY)3.89
PEG (5Y)0.58
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 |
F-Score7
WACC9.02%
ROIC/WACC0.74
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 Y3.13%
EPS Next 2Y2.23%
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 Year1.22%
Revenue Next 2Y2.51%
Revenue Next 3Y3.1%
Revenue Next 5Y3.77%
EBIT growth 1Y0.87%
EBIT growth 3Y-0.98%
EBIT growth 5Y15.06%
EBIT Next Year20.23%
EBIT Next 3Y4.91%
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%