PENSKE AUTOMOTIVE GROUP INC (PAG) Fundamental Analysis & Valuation

NYSE:PAG • US70959W1036

Current stock price

171.66 USD
+10.11 (+6.26%)
At close:
171.66 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 71.54% of its industry peers.
  • With a decent Return On Equity value of 16.82%, PAG is doing good in the industry, outperforming 75.61% of the companies in the same industry.
  • PAG has a better Return On Invested Capital (6.22%) than 60.98% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for PAG is significantly below the industry average of 13.24%.
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

  • With a decent Profit Margin value of 2.94%, PAG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • In the last couple of years the Profit Margin of PAG has grown nicely.
  • PAG has a Operating Margin of 4.03%. This is in the better half of the industry: PAG outperforms 62.60% of its industry peers.
  • In the last couple of years the Operating Margin of PAG has grown nicely.
  • PAG has a Gross Margin of 16.40%. This is amonst the worse of the industry: PAG underperforms 82.93% of its industry peers.
  • PAG's Gross Margin has been stable in the last couple of years.
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 just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for PAG has been reduced compared to 1 year ago.
  • PAG has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, PAG has a worse debt to assets ratio.
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 3.03. This indicates that PAG is financially healthy and has little risk of bankruptcy at the moment.
  • PAG has a Altman-Z score of 3.03. 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 9.62, 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.
  • With a Debt to FCF ratio value of 9.62, PAG perfoms like the industry average, outperforming 52.85% 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 3.03
ROIC/WACC0.89
WACC7.02%
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

  • PAG has a Current 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.
  • PAG's Current ratio of 0.99 is on the low side compared to the rest of the industry. PAG is outperformed by 74.80% of its industry peers.
  • A Quick Ratio of 0.22 indicates that PAG may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.22, PAG is not doing good in the industry: 89.43% 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

  • PAG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.78%.
  • Measured over the past years, PAG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.41% on average per year.
  • Looking at the last year, PAG shows a small growth in Revenue. The Revenue has grown by 4.44% in the last year.
  • PAG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.24% yearly.
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 8.24% on average per year.
  • PAG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.61% yearly.
EPS Next Y2.48%
EPS Next 2Y4.94%
EPS Next 3Y5.85%
EPS Next 5Y8.24%
Revenue Next Year3.54%
Revenue Next 2Y3.93%
Revenue Next 3Y3.35%
Revenue Next 5Y4.61%

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.
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 2030 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 2030 5 10 15

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5

4. PAG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.98, the valuation of PAG can be described as correct.
  • PAG's Price/Earnings ratio is rather cheap when compared to the industry. PAG is cheaper than 80.49% 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 26.54.
  • A Price/Forward Earnings ratio of 12.66 indicates a correct valuation of PAG.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PAG indicates a somewhat cheap valuation: PAG is cheaper than 78.86% of the companies listed in the same industry.
  • PAG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.68.
Industry RankSector Rank
PE 12.98
Fwd PE 12.66
PAG Price Earnings VS Forward Price EarningsPAG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • 63.41% of the companies in the same industry are more expensive than PAG, based on the Enterprise Value to EBITDA ratio.
  • 67.48% of the companies in the same industry are more expensive than PAG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.35
EV/EBITDA 8.76
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.
  • The decent profitability rating of PAG may justify a higher PE ratio.
PEG (NY)5.23
PEG (5Y)0.9
EPS Next 2Y4.94%
EPS Next 3Y5.85%

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7

5. PAG Dividend Analysis

5.1 Amount

  • PAG has a Yearly Dividend Yield of 3.35%.
  • Compared to an average industry Dividend Yield of 3.79, PAG pays a better dividend. On top of this PAG pays more dividend than 83.74% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, PAG pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.35%

5.2 History

  • The dividend of PAG is nicely growing with an annual growth rate of 43.72%!
  • 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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)43.72%
Div Incr Years5
Div Non Decr Years5
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.
  • PAG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.75%
EPS Next 2Y4.94%
EPS Next 3Y5.85%
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 (4/29/2026, 8:04:00 PM)

After market: 171.66 0 (0%)

171.66

+10.11 (+6.26%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Industry Strength36.02
Industry Growth54.04
Earnings (Last)04-29
Earnings (Next)N/A
Inst Owners78.8%
Inst Owner Change4.72%
Ins Owners0.96%
Ins Owner Change2.23%
Market Cap11.29B
Revenue(TTM)31.81B
Net Income(TTM)935.40M
Analysts74.67
Price Target184.19 (7.3%)
Short Float %5.11%
Short Ratio8.94
Dividend
Industry RankSector Rank
Dividend Yield 3.35%
Yearly Dividend5.19
Dividend Growth(5Y)43.72%
DP36.75%
Div Incr Years5
Div Non Decr Years5
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)-0.56%
PT rev (3m)-0.26%
EPS NQ rev (1m)-6.17%
EPS NQ rev (3m)-12.54%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-3.76%
Revenue NQ rev (1m)-1.27%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE 12.98
Fwd PE 12.66
P/S 0.35
P/FCF 17.35
P/OCF 11.57
P/B 2.03
P/tB 5.75
EV/EBITDA 8.76
EPS(TTM)13.23
EY7.71%
EPS(NY)13.56
Fwd EY7.9%
FCF(TTM)9.89
FCFY5.76%
OCF(TTM)14.83
OCFY8.64%
SpS483.78
BVpS84.6
TBVpS29.85
PEG (NY)5.23
PEG (5Y)0.9
Graham Number158.692 (-7.55%)
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 3.03
F-Score6
WACC7.02%
ROIC/WACC0.89
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 Y2.48%
EPS Next 2Y4.94%
EPS Next 3Y5.85%
EPS Next 5Y8.24%
Revenue 1Y (TTM)4.44%
Revenue growth 3Y4.57%
Revenue growth 5Y9.24%
Sales Q2Q%0.64%
Revenue Next Year3.54%
Revenue Next 2Y3.93%
Revenue Next 3Y3.35%
Revenue Next 5Y4.61%
EBIT growth 1Y-2.74%
EBIT growth 3Y-4.87%
EBIT growth 5Y12.68%
EBIT Next Year17.28%
EBIT Next 3Y8.74%
EBIT Next 5Y4.91%
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 5 / 10 to PENSKE AUTOMOTIVE GROUP INC (PAG). This can be considered as Fairly Valued.


How profitable is PENSKE AUTOMOTIVE GROUP INC (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 12.98 and the Price/Book (PB) ratio is 2.03.


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.