PENSKE AUTOMOTIVE GROUP INC (PAG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAG - US70959W1036 - Common Stock
161.72 USD
-0.4 (-0.25%)
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 an average financial health and profitability rating. 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.
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.
1.2 Ratios
PAG has a better Return On Assets (5.51%) than 72.95% of its industry peers.
Looking at the Return On Equity, with a value of 16.53%, PAG is in the better half of the industry, outperforming 75.41% of the companies in the same industry.
PAG has a better Return On Invested Capital (6.49%) than 64.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAG is below the industry average of 11.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 16.53% | ||
| ROIC | 6.49% |
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
With a decent Profit Margin value of 3.08%, PAG is doing good in the industry, outperforming 68.85% of the companies in the same industry.
PAG's Profit Margin has improved in the last couple of years.
The Operating Margin of PAG (4.22%) is better than 61.48% of its industry peers.
PAG's Operating Margin has improved in the last couple of years.
PAG has a worse Gross Margin (16.54%) than 82.79% of its industry peers.
PAG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.22% | ||
| PM (TTM) | 3.08% | ||
| GM | 16.54% |
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.
Compared to 1 year ago, PAG has less shares outstanding
PAG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PAG has a worse debt to assets ratio.
2.2 Solvency
PAG has an Altman-Z score of 3.07. This indicates that PAG is financially healthy and has little risk of bankruptcy at the moment.
PAG has a Altman-Z score of 3.07. This is in the better half of the industry: PAG outperforms 74.59% of its industry peers.
The Debt to FCF ratio of PAG is 7.32, which is on the high side as it means it would take PAG, 7.32 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.32, PAG is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
A Debt/Equity ratio of 0.92 indicates that PAG is somewhat dependend on debt financing.
PAG has a Debt to Equity ratio (0.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.07 |
ROIC/WACC0.74
WACC8.74%
2.3 Liquidity
PAG has a Current Ratio of 0.97. 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 0.97. This is in the lower half of the industry: PAG underperforms 74.59% 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 86.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.05% over the past year.
PAG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.82% yearly.
PAG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.25%.
PAG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.61% yearly.
EPS 1Y (TTM)2.05%
EPS 3Y-3.27%
EPS 5Y20.82%
EPS Q2Q%-4.72%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y6.02%
Revenue growth 5Y5.61%
Sales Q2Q%1.38%
3.2 Future
PAG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.93% yearly.
PAG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.66% yearly.
EPS Next Y2.51%
EPS Next 2Y2.02%
EPS Next 3Y3.36%
EPS Next 5Y5.93%
Revenue Next Year0.83%
Revenue Next 2Y1.77%
Revenue Next 3Y2.71%
Revenue Next 5Y3.66%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.60 indicates a reasonable valuation of PAG.
Based on the Price/Earnings ratio, PAG is valued cheaper than 81.97% of the companies in the same industry.
PAG is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.30, which indicates a very decent valuation of PAG.
78.69% 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 (36.59), we can say PAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAG is valued a bit cheaper than the industry average as 65.57% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PAG is valued a bit cheaper than 79.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.07 | ||
| EV/EBITDA | 8.3 |
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)4.62
PEG (5Y)0.56
EPS Next 2Y2.02%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.20%, PAG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.66, PAG pays a better dividend. On top of this PAG pays more dividend than 89.34% of the companies listed 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 | 3.2% |
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
35.22% 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.
DP35.22%
EPS Next 2Y2.02%
EPS Next 3Y3.36%
NYSE:PAG (11/28/2025, 7:54:01 PM)
161.72
-0.4 (-0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change0.69%
Ins Owners0.85%
Ins Owner Change-5.82%
Market Cap10.65B
Revenue(TTM)30.68B
Net Income(TTM)943.70M
Analysts72.31
Price Target180.57 (11.66%)
Short Float %3.62%
Short Ratio7.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend4.1
Dividend Growth(5Y)21.07%
DP35.22%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.82%
Min EPS beat(2)-6.69%
Max EPS beat(2)5.05%
EPS beat(4)3
Avg EPS beat(4)1.91%
Min EPS beat(4)-6.69%
Max EPS beat(4)6.57%
EPS beat(8)4
Avg EPS beat(8)-0.13%
EPS beat(12)7
Avg EPS beat(12)0.67%
EPS beat(16)11
Avg EPS beat(16)3.31%
Revenue beat(2)0
Avg Revenue beat(2)-2.8%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)-1.29%
Revenue beat(4)1
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)0.87%
Revenue beat(8)2
Avg Revenue beat(8)-1.19%
Revenue beat(12)6
Avg Revenue beat(12)0.55%
Revenue beat(16)9
Avg Revenue beat(16)0.88%
PT rev (1m)-1.67%
PT rev (3m)-0.2%
EPS NQ rev (1m)-4.07%
EPS NQ rev (3m)-3.16%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)-1.61%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 11.3 | ||
| P/S | 0.35 | ||
| P/FCF | 14.07 | ||
| P/OCF | 9.96 | ||
| P/B | 1.87 | ||
| P/tB | 4.76 | ||
| EV/EBITDA | 8.3 |
EPS(TTM)13.94
EY8.62%
EPS(NY)14.31
Fwd EY8.85%
FCF(TTM)11.49
FCFY7.11%
OCF(TTM)16.24
OCFY10.04%
SpS465.87
BVpS86.66
TBVpS34.01
PEG (NY)4.62
PEG (5Y)0.56
Graham Number164.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 16.53% | ||
| ROCE | 11.87% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.52% | ||
| ROICexgc | 8.52% | ||
| OM | 4.22% | ||
| PM (TTM) | 3.08% | ||
| GM | 16.54% | ||
| FCFM | 2.47% |
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-Score8
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.32 | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 188.43% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 4.83 | ||
| Cash Conversion | 73.16% | ||
| Profit Quality | 80.22% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 3.07 |
F-Score8
WACC8.74%
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)2.05%
EPS 3Y-3.27%
EPS 5Y20.82%
EPS Q2Q%-4.72%
EPS Next Y2.51%
EPS Next 2Y2.02%
EPS Next 3Y3.36%
EPS Next 5Y5.93%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y6.02%
Revenue growth 5Y5.61%
Sales Q2Q%1.38%
Revenue Next Year0.83%
Revenue Next 2Y1.77%
Revenue Next 3Y2.71%
Revenue Next 5Y3.66%
EBIT growth 1Y0.53%
EBIT growth 3Y-0.98%
EBIT growth 5Y15.06%
EBIT Next Year20.23%
EBIT Next 3Y4.91%
EBIT Next 5Y3.35%
FCF growth 1Y-17.19%
FCF growth 3Y-8.08%
FCF growth 5Y24.3%
OCF growth 1Y-15.98%
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 11.6 and the Price/Book (PB) ratio is 1.87.
What is the financial health of PENSKE AUTOMOTIVE GROUP INC (PAG) stock?
The financial health rating of PENSKE AUTOMOTIVE GROUP INC (PAG) is 4 / 10.