PENSKE AUTOMOTIVE GROUP INC (PAG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAG - US70959W1036 - Common Stock
163.96 USD
-0.43 (-0.26%)
163.96 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PAG. PAG was compared to 122 industry peers in the Specialty Retail industry. PAG has only an average score on both its financial health and profitability. PAG is not valued too expensively and it also shows a decent growth rate. Finally PAG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year PAG was profitable.
- In the past year PAG had a positive cash flow from operations.
- Each year in the past 5 years PAG has been profitable.
- In the past 5 years PAG always reported a positive cash flow from operatings.
1.2 Ratios
- PAG has a better Return On Assets (5.51%) than 72.13% of its industry peers.
- PAG has a Return On Equity of 16.53%. This is in the better half of the industry: PAG outperforms 74.59% of its industry peers.
- PAG's Return On Invested Capital of 6.49% is fine compared to the rest of the industry. PAG outperforms 63.11% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PAG is below the industry average of 12.24%.
| 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
- PAG's Profit Margin of 3.08% is fine compared to the rest of the industry. PAG outperforms 68.03% of its industry peers.
- PAG's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 4.22%, PAG is in the better half of the industry, outperforming 61.48% of the companies in the same industry.
- PAG's Operating Margin has improved in the last couple of years.
- PAG has a Gross Margin of 16.54%. This is amonst the worse of the industry: PAG underperforms 81.97% of its industry peers.
- In the last couple of years the Gross Margin of PAG has grown nicely.
| 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.
- 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.
2.2 Solvency
- An Altman-Z score of 3.08 indicates that PAG is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.08, PAG is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
- PAG has a debt to FCF ratio of 7.32. This is a slightly negative value and a sign of low solvency as PAG would need 7.32 years to pay back of 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 61.48% of the companies in the same industry.
- PAG has a Debt/Equity ratio of 0.92. This is a neutral value indicating PAG is somewhat dependend on debt financing.
- PAG has a Debt to Equity ratio (0.92) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.72
WACC9.02%
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's Current ratio of 0.97 is on the low side compared to the rest of the industry. PAG is outperformed by 77.05% of its industry peers.
- PAG has a Quick 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.
- With a Quick ratio value of 0.21, PAG is not doing good in the industry: 86.07% of the companies in the same industry are doing better.
| 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.
- 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 2.25% in the past year.
- The Revenue has been growing slightly by 5.61% on average over the past years.
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 Y-0.19%
EPS Next 2Y1.46%
EPS Next 3Y2.57%
EPS Next 5Y5.93%
Revenue Next Year0.97%
Revenue Next 2Y1.84%
Revenue Next 3Y2.28%
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
- With a Price/Earnings ratio of 11.76, the valuation of PAG can be described as very reasonable.
- 82.79% of the companies in the same industry are more expensive than PAG, based on the Price/Earnings ratio.
- PAG is valuated cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- PAG is valuated reasonably with a Price/Forward Earnings ratio of 11.58.
- Based on the Price/Forward Earnings ratio, PAG is valued cheaper than 82.79% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, PAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 11.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PAG is valued a bit cheaper than 68.85% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PAG is valued a bit cheaper than the industry average as 79.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
- PAG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y1.46%
EPS Next 3Y2.57%
5. Dividend
5.1 Amount
- PAG has a Yearly Dividend Yield of 3.14%.
- Compared to an average industry Dividend Yield of 2.13, PAG pays a better dividend. On top of this PAG pays more dividend than 86.89% of the companies listed in the same industry.
- PAG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
- The dividend of PAG is nicely growing with an annual growth rate of 21.07%!
- 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.
- PAG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.22%
EPS Next 2Y1.46%
EPS Next 3Y2.57%
163.96
-0.43 (-0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners78.27%
Inst Owner Change0.97%
Ins Owners0.86%
Ins Owner Change0.09%
Market Cap10.80B
Revenue(TTM)30.68B
Net Income(TTM)943.70M
Analysts74.67
Price Target184.67 (12.63%)
Short Float %3.76%
Short Ratio7.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend4.1
Dividend Growth(5Y)21.07%
DP35.22%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)0.99%
PT rev (3m)0.57%
EPS NQ rev (1m)-1.27%
EPS NQ rev (3m)-6.14%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-3.22%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 11.58 | ||
| P/S | 0.35 | ||
| P/FCF | 14.26 | ||
| P/OCF | 10.1 | ||
| P/B | 1.89 | ||
| P/tB | 4.82 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)13.94
EY8.5%
EPS(NY)14.16
Fwd EY8.63%
FCF(TTM)11.49
FCFY7.01%
OCF(TTM)16.24
OCFY9.91%
SpS465.87
BVpS86.66
TBVpS34.01
PEG (NY)N/A
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 | 3.08 |
F-Score8
WACC9.02%
ROIC/WACC0.72
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 Y-0.19%
EPS Next 2Y1.46%
EPS Next 3Y2.57%
EPS Next 5Y5.93%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y6.02%
Revenue growth 5Y5.61%
Sales Q2Q%1.38%
Revenue Next Year0.97%
Revenue Next 2Y1.84%
Revenue Next 3Y2.28%
Revenue Next 5Y3.66%
EBIT growth 1Y0.53%
EBIT growth 3Y-0.98%
EBIT growth 5Y15.06%
EBIT Next Year16.8%
EBIT Next 3Y6.1%
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.
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 decline by -0.19% 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 35.22%.