PENSKE AUTOMOTIVE GROUP INC (PAG) Stock Fundamental Analysis
USA - NYSE:PAG - US70959W1036 - Common Stock
164.77 USD
-1.06 (-0.64%)
164.77 USD
0 (0%)
Taking everything into account, PAG scores 5 out of 10 in our fundamental rating. PAG was compared to 119 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.
In the past year PAG had a positive cash flow from operations.
In the past 5 years PAG has always been profitable.
In the past 5 years PAG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.50%, PAG is in the better half of the industry, outperforming 73.11% of the companies in the same industry.
PAG's Return On Equity of 17.04% is fine compared to the rest of the industry. PAG outperforms 76.47% of its industry peers.
The Return On Invested Capital of PAG (6.70%) is better than 65.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAG is below the industry average of 11.94%.
| 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 68.91% of the companies in the same industry.
In the last couple of years the Profit Margin of PAG has grown nicely.
With a decent Operating Margin value of 4.30%, PAG is doing good in the industry, outperforming 61.34% of the companies in the same industry.
PAG's Operating Margin has improved in the last couple of years.
PAG has a worse Gross Margin (16.58%) than 84.03% 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
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
Compared to 5 years ago, PAG has less shares outstanding
Compared to 1 year ago, PAG has a worse debt to assets ratio.
2.2 Solvency
PAG has an Altman-Z score of 2.98. 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.
The Altman-Z score of PAG (2.98) is better than 68.07% 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.
Looking at the Debt to FCF ratio, with a value of 9.30, PAG is in line with its industry, outperforming 55.46% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that PAG is somewhat dependend on debt financing.
The Debt to Equity ratio of PAG (0.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.76
WACC8.83%
2.3 Liquidity
PAG has a Current 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.
The Current ratio of PAG (0.90) is worse than 78.99% of its industry peers.
A Quick Ratio of 0.21 indicates that PAG may have some problems paying its short term obligations.
PAG has a Quick ratio of 0.21. This is amonst the worse of the industry: PAG underperforms 89.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The earnings per share for PAG have decreased by -0.63% in the last year.
The Earnings Per Share has been growing by 20.82% on average over the past years. This is a very strong growth
Looking at the last year, PAG shows a small growth in Revenue. The Revenue has grown by 2.39% in the last year.
The Revenue has been growing slightly by 5.61% on average over the past years.
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
Based on estimates for the next years, PAG will show a small growth in Earnings Per Share. The EPS will grow by 5.96% on average per year.
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 Y3.13%
EPS Next 2Y2.23%
EPS Next 3Y3.04%
EPS Next 5Y5.96%
Revenue Next Year1.37%
Revenue Next 2Y2.56%
Revenue Next 3Y3.11%
Revenue Next 5Y3.77%
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.
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
PAG is valuated reasonably with a Price/Earnings ratio of 11.69.
Based on the Price/Earnings ratio, PAG is valued cheaply inside the industry as 81.51% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.91, PAG is valued rather cheaply.
PAG is valuated reasonably with a Price/Forward Earnings ratio of 11.47.
PAG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PAG is cheaper than 79.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.92. PAG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
PAG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PAG is cheaper than 65.55% 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 78.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.83 | ||
| EV/EBITDA | 8.51 |
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)3.73
PEG (5Y)0.56
EPS Next 2Y2.23%
EPS Next 3Y3.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.06%, 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 5.52. PAG pays more dividend than 88.24% of the companies in the same industry.
PAG's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
On average, the dividend of PAG grows each year by 21.07%, which is quite nice.
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.
The dividend of PAG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.11%
EPS Next 2Y2.23%
EPS Next 3Y3.04%
164.77
-1.06 (-0.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change0%
Ins Owners0.85%
Ins Owner Change-5.82%
Market Cap10.88B
Revenue(TTM)30.58B
Net Income(TTM)956.80M
Analysts72.31
Price Target183.63 (11.45%)
Short Float %2.63%
Short Ratio6.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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)1.49%
PT rev (3m)4.44%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)0.37%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 11.47 | ||
| P/S | 0.36 | ||
| P/FCF | 16.83 | ||
| P/OCF | 11.32 | ||
| P/B | 1.94 | ||
| P/tB | 5.05 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)14.1
EY8.56%
EPS(NY)14.37
Fwd EY8.72%
FCF(TTM)9.79
FCFY5.94%
OCF(TTM)14.55
OCFY8.83%
SpS463.01
BVpS85
TBVpS32.6
PEG (NY)3.73
PEG (5Y)0.56
Graham Number164.22
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%
ROICexgc growth 3Y-7.25%
ROICexgc 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 | 2.98 |
F-Score7
WACC8.83%
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 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 Year1.37%
Revenue Next 2Y2.56%
Revenue Next 3Y3.11%
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%
PENSKE AUTOMOTIVE GROUP INC / PAG FAQ
What is the ChartMill fundamental rating of PENSKE AUTOMOTIVE GROUP INC (PAG) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PAG.
Can you provide the valuation status for PENSKE AUTOMOTIVE GROUP INC?
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.
What is the valuation of PENSKE AUTOMOTIVE GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PENSKE AUTOMOTIVE GROUP INC (PAG) is 11.69 and the Price/Book (PB) ratio is 1.94.
What is the financial health of PENSKE AUTOMOTIVE GROUP INC (PAG) stock?
The financial health rating of PENSKE AUTOMOTIVE GROUP INC (PAG) is 3 / 10.