PENSKE AUTOMOTIVE GROUP INC (PAG) Fundamental Analysis & Valuation

NYSE:PAG • US70959W1036

Current stock price

145.24 USD
+1.06 (+0.74%)
At close:
145.24 USD
0 (0%)
After Hours:

This PAG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. PAG Profitability Analysis

1.1 Basic Checks

  • PAG had positive earnings in the past year.
  • PAG had a positive operating cash flow in the past year.
  • In the past 5 years PAG has always been profitable.
  • PAG had a positive operating cash flow in each of the past 5 years.
PAG Yearly Net Income VS EBIT VS OCF VS FCFPAG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

1.2 Ratios

  • PAG's Return On Assets of 5.32% is fine compared to the rest of the industry. PAG outperforms 72.58% of its industry peers.
  • With a decent Return On Equity value of 16.82%, PAG is doing good in the industry, outperforming 78.23% of the companies in the same industry.
  • PAG has a better Return On Invested Capital (6.22%) than 61.29% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for PAG is significantly below the industry average of 13.55%.
Industry RankSector Rank
ROA 5.32%
ROE 16.82%
ROIC 6.22%
ROA(3y)6.02%
ROA(5y)7.33%
ROE(3y)19.41%
ROE(5y)24.13%
ROIC(3y)7.03%
ROIC(5y)7.75%
PAG Yearly ROA, ROE, ROICPAG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • PAG's Profit Margin of 2.94% is fine compared to the rest of the industry. PAG outperforms 69.35% of its industry peers.
  • PAG's Profit Margin has improved in the last couple of years.
  • PAG has a Operating Margin of 4.03%. This is in the better half of the industry: PAG outperforms 63.71% of its industry peers.
  • PAG's Operating Margin has improved in the last couple of years.
  • PAG's Gross Margin of 16.40% is on the low side compared to the rest of the industry. PAG is outperformed by 79.84% of its industry peers.
  • In the last couple of years the Gross Margin of PAG has remained more or less at the same level.
Industry RankSector Rank
OM 4.03%
PM (TTM) 2.94%
GM 16.4%
OM growth 3Y-9.03%
OM growth 5Y3.15%
PM growth 3Y-16%
PM growth 5Y2.02%
GM growth 3Y-1.94%
GM growth 5Y1.03%
PAG Yearly Profit, Operating, Gross MarginsPAG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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3

2. PAG Health Analysis

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.
  • The number of shares outstanding for PAG has been reduced compared to 1 year ago.
  • Compared to 5 years ago, PAG has less shares outstanding
  • The debt/assets ratio for PAG is higher compared to a year ago.
PAG Yearly Shares OutstandingPAG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
PAG Yearly Total Debt VS Total AssetsPAG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • PAG has an Altman-Z score of 2.97. This is not the best score and indicates that PAG is in the grey zone with still only limited risk for bankruptcy at the moment.
  • PAG has a Altman-Z score of 2.97. This is in the better half of the industry: PAG outperforms 72.58% of its industry peers.
  • The Debt to FCF ratio of PAG is 9.62, which is on the high side as it means it would take PAG, 9.62 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 9.62, PAG is in line with its industry, outperforming 57.26% of the companies in the same industry.
  • PAG has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of PAG (1.06) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 9.62
Altman-Z 2.97
ROIC/WACC0.7
WACC8.92%
PAG Yearly LT Debt VS Equity VS FCFPAG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 0.99 indicates that PAG may have some problems paying its short term obligations.
  • PAG's Current ratio of 0.99 is on the low side compared to the rest of the industry. PAG is outperformed by 71.77% of its industry peers.
  • PAG has a Quick Ratio of 0.99. This is a bad value and indicates that PAG is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.22, PAG is not doing good in the industry: 83.87% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.22
PAG Yearly Current Assets VS Current LiabilitesPAG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. PAG Growth Analysis

3.1 Past

  • The earnings per share for PAG have decreased by -3.78% in the last year.
  • The Earnings Per Share has been growing by 14.41% on average over the past years. This is quite good.
  • PAG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.44%.
  • The Revenue has been growing by 9.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.78%
EPS 3Y-10.59%
EPS 5Y14.41%
EPS Q2Q%-20.06%
Revenue 1Y (TTM)4.44%
Revenue growth 3Y4.57%
Revenue growth 5Y9.24%
Sales Q2Q%0.64%

3.2 Future

  • Based on estimates for the next years, PAG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.51% on average per year.
  • PAG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y3.49%
EPS Next 2Y4.96%
EPS Next 3Y6.66%
EPS Next 5Y8.51%
Revenue Next Year2.93%
Revenue Next 2Y3.88%
Revenue Next 3Y3.15%
Revenue Next 5Y4.41%

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.
PAG Yearly Revenue VS EstimatesPAG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B
PAG Yearly EPS VS EstimatesPAG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15

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6

4. PAG Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.98 indicates a reasonable valuation of PAG.
  • Compared to the rest of the industry, the Price/Earnings ratio of PAG indicates a rather cheap valuation: PAG is cheaper than 82.26% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of PAG to the average of the S&P500 Index (25.96), we can say PAG is valued rather cheaply.
  • The Price/Forward Earnings ratio is 10.61, which indicates a very decent valuation of PAG.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PAG indicates a rather cheap valuation: PAG is cheaper than 82.26% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, PAG is valued rather cheaply.
Industry RankSector Rank
PE 10.98
Fwd PE 10.61
PAG Price Earnings VS Forward Price EarningsPAG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • PAG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PAG is cheaper than 65.32% of the companies in the same industry.
  • PAG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PAG is cheaper than 72.58% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.68
EV/EBITDA 7.97
PAG Per share dataPAG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • PAG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.14
PEG (5Y)0.76
EPS Next 2Y4.96%
EPS Next 3Y6.66%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. PAG Dividend Analysis

5.1 Amount

  • PAG has a Yearly Dividend Yield of 3.64%.
  • PAG's Dividend Yield is rather good when compared to the industry average which is at 2.41. PAG pays more dividend than 86.29% of the companies in the same industry.
  • PAG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 3.64%

5.2 History

  • The dividend of PAG is nicely growing with an annual growth rate of 43.72%!
  • 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)43.72%
Div Incr Years4
Div Non Decr Years4
PAG Yearly Dividends per sharePAG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • 36.75% 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.
DP36.75%
EPS Next 2Y4.96%
EPS Next 3Y6.66%
PAG Yearly Income VS Free CF VS DividendPAG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
PAG Dividend Payout.PAG Dividend Payout, showing the Payout Ratio.PAG Dividend Payout.PayoutRetained Earnings

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PAG Fundamentals: All Metrics, Ratios and Statistics

PENSKE AUTOMOTIVE GROUP INC

NYSE:PAG (3/17/2026, 6:30:00 PM)

After market: 145.24 0 (0%)

145.24

+1.06 (+0.74%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-11
Earnings (Next)04-28
Inst Owners78.7%
Inst Owner Change7.94%
Ins Owners0.9%
Ins Owner Change2.23%
Market Cap9.55B
Revenue(TTM)31.81B
Net Income(TTM)935.40M
Analysts74.67
Price Target185.24 (27.54%)
Short Float %4.62%
Short Ratio8.22
Dividend
Industry RankSector Rank
Dividend Yield 3.64%
Yearly Dividend5.19
Dividend Growth(5Y)43.72%
DP36.75%
Div Incr Years4
Div Non Decr Years4
Ex-Date02-25
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.07%
Min EPS beat(2)-9.46%
Max EPS beat(2)-6.69%
EPS beat(4)2
Avg EPS beat(4)-2.1%
Min EPS beat(4)-9.46%
Max EPS beat(4)5.05%
EPS beat(8)4
Avg EPS beat(8)-0.38%
EPS beat(12)6
Avg EPS beat(12)-0.57%
EPS beat(16)10
Avg EPS beat(16)2.32%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)1.16%
Revenue beat(8)3
Avg Revenue beat(8)-1.04%
Revenue beat(12)6
Avg Revenue beat(12)-0.01%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)0.62%
PT rev (3m)1.3%
EPS NQ rev (1m)-5.24%
EPS NQ rev (3m)-4.18%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)-2.77%
Revenue NQ rev (1m)1.3%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.41%
Valuation
Industry RankSector Rank
PE 10.98
Fwd PE 10.61
P/S 0.3
P/FCF 14.68
P/OCF 9.79
P/B 1.72
P/tB 4.87
EV/EBITDA 7.97
EPS(TTM)13.23
EY9.11%
EPS(NY)13.69
Fwd EY9.43%
FCF(TTM)9.89
FCFY6.81%
OCF(TTM)14.83
OCFY10.21%
SpS483.71
BVpS84.59
TBVpS29.84
PEG (NY)3.14
PEG (5Y)0.76
Graham Number158.68
Profitability
Industry RankSector Rank
ROA 5.32%
ROE 16.82%
ROCE 11.32%
ROIC 6.22%
ROICexc 6.24%
ROICexgc 8.16%
OM 4.03%
PM (TTM) 2.94%
GM 16.4%
FCFM 2.05%
ROA(3y)6.02%
ROA(5y)7.33%
ROE(3y)19.41%
ROE(5y)24.13%
ROIC(3y)7.03%
ROIC(5y)7.75%
ROICexc(3y)7.07%
ROICexc(5y)7.8%
ROICexgc(3y)9.2%
ROICexgc(5y)10.16%
ROCE(3y)12.93%
ROCE(5y)13.88%
ROICexgc growth 3Y-11.55%
ROICexgc growth 5Y7.25%
ROICexc growth 3Y-11.66%
ROICexc growth 5Y6.67%
OM growth 3Y-9.03%
OM growth 5Y3.15%
PM growth 3Y-16%
PM growth 5Y2.02%
GM growth 3Y-1.94%
GM growth 5Y1.03%
F-Score6
Asset Turnover1.81
Health
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 9.62
Debt/EBITDA 4.06
Cap/Depr 188.39%
Cap/Sales 1.02%
Interest Coverage 4.67
Cash Conversion 67.11%
Profit Quality 69.54%
Current Ratio 0.99
Quick Ratio 0.22
Altman-Z 2.97
F-Score6
WACC8.92%
ROIC/WACC0.7
Cap/Depr(3y)230.41%
Cap/Depr(5y)223.6%
Cap/Sales(3y)1.15%
Cap/Sales(5y)1.09%
Profit Quality(3y)75.34%
Profit Quality(5y)79.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.78%
EPS 3Y-10.59%
EPS 5Y14.41%
EPS Q2Q%-20.06%
EPS Next Y3.49%
EPS Next 2Y4.96%
EPS Next 3Y6.66%
EPS Next 5Y8.51%
Revenue 1Y (TTM)4.44%
Revenue growth 3Y4.57%
Revenue growth 5Y9.24%
Sales Q2Q%0.64%
Revenue Next Year2.93%
Revenue Next 2Y3.88%
Revenue Next 3Y3.15%
Revenue Next 5Y4.41%
EBIT growth 1Y-2.74%
EBIT growth 3Y-4.87%
EBIT growth 5Y12.68%
EBIT Next Year17.76%
EBIT Next 3Y8.74%
EBIT Next 5Y4.47%
FCF growth 1Y-23.72%
FCF growth 3Y-17.92%
FCF growth 5Y-8.53%
OCF growth 1Y-20.76%
OCF growth 3Y-12.57%
OCF growth 5Y-4.09%

PENSKE AUTOMOTIVE GROUP INC / PAG Fundamental Analysis FAQ

What is the ChartMill fundamental rating of PENSKE AUTOMOTIVE GROUP INC (PAG) stock?

ChartMill assigns a fundamental rating of 5 / 10 to PAG.


What is the valuation status for PAG stock?

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.


Can you provide the expected EPS growth for PAG stock?

The Earnings per Share (EPS) of PENSKE AUTOMOTIVE GROUP INC (PAG) is expected to grow by 3.49% in the next year.


Can you provide the dividend sustainability for PAG stock?

The dividend rating of PENSKE AUTOMOTIVE GROUP INC (PAG) is 7 / 10 and the dividend payout ratio is 36.75%.