Penske Automotive Group, Inc.

Consumer Discretionary
Retail-Auto Dealers and Gas Stations
www.penskeautomotive.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $10.94B
PE 13
Debt $2.62B
Cash $91.90M
EV $13.47B
FCF $647.70M

Earnings

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Sales & Net Margins

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Earnings	$873.20M
EBIT	$1.24B
ROE	17%
ROA	7%
FCF	$647.70M
Equity	$5.23B
Growth Stability	92%
PE	12.53
PEG	0.51
PB	2.09
P/FCF	16.89
P/S	0.36
Price/Cash	0.01
Debt/Equity	0.5
Debt/FCF	4.05
Net Margins	3%
Gross Margins	16%
Op. Margins	4%
Earnings CAGR	18%
Sales Growth YoY	2%
Sales Growth QoQ	-1%
Sales CAGR	5%
FCF CAGR	27%
Equity CAGR	13%
Earnings Stability	0.68
Earnings Growth YoY	-14%
Earnings Growth QoQ	-6%
Earnings CAGR 5Y	25%

Sales CAGR 5Y	9%
FCF CAGR 5Y	8%
Equity CAGR 5Y	14%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	-15%
Equity CAGR 3Y	9%
Market Cap	$10.94B
Revenue	$30.01B
Dividend Yield	2%
Payout Ratio	28%
Assets	$17.07B
Total Debt	$2.62B
Cash	$91.90M
Shares Outstanding	66.77M
EV	13.47B
Earnings Score	90%
Moat Score	82%
Safety Score	88%
Final Score	87%
Working Capital	-575.5M
Current Ratio	0.91
Gross Profit	$4.94B
Shares Growth 3y	-6%
Equity Growth QoQ	5%
Equity Growth YoY	15%

Assets & ROA

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Stockholders Equity & ROE

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Penske Automotive Group operates in 20 U.S. states and overseas. It has 147 U.S. light-vehicle stores including in Puerto Rico as well as 174 franchised dealerships overseas, primarily in the United Kingdom. The company is the second-largest U.S.-based dealership in terms of light-vehicle revenue and sells more than 35 brands, with 92% of retail automotive revenue coming from luxury and import names. Other services, in addition to new and used vehicles, are parts and repair and finance and insurance. The firm's Premier Truck Group owns 41 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 23 CarShop used-vehicle stores in the U.S. and U.K. The company is based in Michigan and was called United Auto Group before changing its name in 2007.

SEC Filings

Direct access to Penske Automotive Group, Inc. (PAG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Penske Automotive Group, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Penske Automotive Group, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 18%

Stability 68%

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Penske Automotive Group, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Penske Automotive Group, Inc..

Years

Calculation mode

= $44B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$648M	$825M	$1.1B	$1.3B	$1.7B	$2.2B	$2.8B	$3.5B	$4.5B	$5.7B	$7.3B	$73B
DCF		$750M	$869M	$1B	$1.2B	$1.4B	$1.6B	$1.8B	$2.1B	$2.4B	$2.8B	$28B
Value	$44B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	2%	2%	2%	3%	2%	2%	3%	5%	5%	4%	3%
ROA	-	7%	6%	6%	6%	5%	5%	12%	13%	9%	7%
ROE	-	18%	19%	25%	18%	15%	16%	29%	33%	22%	17%

Bad Net Margins (3%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	6.84	11.86	5.95	7.48	9.02	1.75	1.49	1.44	2.56	4.05
Debt over Equity	0.83	0.72	1.08	0.92	0.88	0.88	0.53	0.38	0.41	0.39	0.5
Growth Stability	-	-	-	100%	100%	92%	100%	100%	100%	100%	92%

Bad Debt/FCF ratio (4.05)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.5)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (92%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	12%	4%	6%	7%	2%	-12%	25%	9%	6%	9%
Earnings YoY growth	-	14%	5%	79%	-23%	-7%	25%	119%	16%	-24%	25%
Equity YoY growth	-	9%	-3%	36%	9%	7%	18%	23%	2%	14%	14%
FCF YoY growth	-	0%	-15%	132%	-18%	-12%	272%	3%	13%	-39%	8%