A Business at a Glance
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PENSKE AUTOMOTIVE GROUP, INC.
PAG
$14.4B
Mkt Cap
$217.35
+0.84%
PENSKE AUTOMOTIVE GROUP, INC. (PAG) has a current P/E ratio of 15.4, compared to its historical median P/E of 8.0. The stock is currently considered Expensive based on its historical valuation range.
PENSKE AUTOMOTIVE GROUP, INC. (PAG) has a 5-year average return on invested capital (ROIC) of 14.1%. This indicates solid capital allocation.
PENSKE AUTOMOTIVE GROUP, INC. (PAG) has a market capitalization of $14.3B. It is classified as a large-cap stock.
Yes, PENSKE AUTOMOTIVE GROUP, INC. (PAG) pays a dividend with a trailing twelve-month yield of 2.48%. The company also returns capital through share buybacks, with a buyback yield of 1.02%.
Based on historical P/E analysis, PENSKE AUTOMOTIVE GROUP, INC. (PAG) appears expensive. The current P/E of 15.4 is 93% above its historical median of 8.0. The estimated fair value CAGR (P/E method) is 18.7%.
PENSKE AUTOMOTIVE GROUP, INC. (PAG) operates in the Retail-Auto Dealers & Gasoline Stations industry, within the Consumer Cyclical sector.
Penske Automotive Group is a diversified international transportation services company and one of the world's largest automotive and commercial truck retailers, operating 365 franchised automotive dealerships across the United States, United Kingdom, Canada, Germany, Italy, Japan, and Australia, along with 15 used vehicle dealerships under brands including CarShop and Sytner Select. The company generates revenue through three primary segments: retail automotive dealerships ($27.5 billion in 2025), retail commercial truck dealerships ($3.4 billion), and commercial vehicle distribution and other operations ($922.6 million), with gross profit of $5.2 billion across these segments. The retail automotive business offers over 40 vehicle brands with 71% of franchised dealership revenue from premium brands such as Audi, BMW, Land Rover, Lexus, Mercedes-Benz, and Porsche, and 23% from volume non-U.S. brands like Toyota and Honda, with 61% of retail automotive revenue generated in the U.S. and Puerto Rico and 39% internationally. Beyond vehicle sales, the company generates higher-margin recurring revenue through maintenance and repair services, third-party finance and insurance products, extended service contracts, and aftermarket products, with service and parts sales typically less cyclical than retail vehicle sales and representing the largest portion of retail automotive gross profit. The company also owns 28.9% of Penske Transportation Solutions, which operates one of North America's largest trucking fleets with over 396,600 trucks, tractors, and trailers under lease, rental, and maintenance contracts, and employs over 42,000 people worldwide providing transportation, supply chain, and technology solutions.
【Freight market recovery underway】 Management anticipates improvement in the commercial truck market with increased new truck orders and industry backlog growth, expecting higher new unit sales in the second half of 2026 as Class 8 orders and the industry backlog have expanded significantly. Service and parts revenue is expected to continue mid-single digit growth driven by an aging vehicle fleet, artificial intelligence initiatives, and targeted customer engagement, with service and parts gross profit representing a substantial portion of segment profitability. The company expects lease return maturities to improve in 2026 after bottoming in 2025, benefiting franchise dealers with increased used vehicle sourcing and supporting overall business performance. Management anticipates positive cash flow impacts from tax reform provisions, including estimated bonus depreciation benefits of $120–150 million annually from the company's 28.9% ownership stake in Penske Transportation Solutions, and continues to evaluate strategic acquisitions and divestitures to optimize portfolio returns.
| Metric | Target | Period |
|---|---|---|
| Bonus depreciation cash flow benefit | $120–150 million per year | FY2026 and beyond |
| Annualized revenue from Australia automotive dealerships | AUD 450 million | FY2025 and beyond |
| Potential energy solutions business revenue | Over AUD 1 billion | By 2030 |
Bonus depreciation cash flow benefit (FY2026 and beyond): “We estimate the bonus depreciation feature will provide an estimated $120 million-$150 million of additional cash flow each year.”
Annualized revenue from Australia automotive dealerships (FY2025 and beyond): “We anticipate generating approximately AUD 450 million in annualized revenue through these automotive dealerships.”
Potential energy solutions business revenue (By 2030): “We see a potential for the total energy solutions business to generate over AUD 1 billion in revenue by 2030.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 32.1B | 31.8B | 31.9B | 30.9B | 27.8B | 25.6B |
| Net Income | 926M | 935M | 969M | 1.1B | 1.4B | 1.2B |
| EPS | $14.05 | $14.13 | $14.49 | $16.31 | $18.55 | $14.89 |
| Free Cash Flow | 597M | 651M | 853M | 759M | 1.2B | 1.0B |
| ROIC | 11.3% | 10.9% | 12.9% | 14.8% | 16.4% | 15.6% |
| Gross Margin | 16.4% | 16.4% | 16.4% | 16.6% | 17.4% | 17.4% |
| Debt/Equity | 0.47 | 0.85 | 0.82 | 0.86 | 0.98 | 0.97 |
| Dividends/Share | $5.39 | $5.18 | $4.09 | $2.78 | $2.07 | $1.78 |
| Operating Income | 1.3B | 1.3B | 1.4B | 1.4B | 1.5B | 1.4B |
| Operating Margin | 3.9% | 4.0% | 4.3% | 4.6% | 5.3% | 5.3% |
| ROE | 16.3% | 17.1% | 19.1% | 25.0% | 33.6% | 32.2% |
| Shares Outstanding | 66M | 66M | 67M | 68M | 74M | 80M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 17.2B | 19.3B | 20.1B | 21.4B | 22.8B | 23.2B | 20.4B | 25.6B | 27.8B | 30.9B | 31.9B | 31.8B | 32.1B |
| Gross Margin | 15.0% | 14.9% | 14.7% | 15.1% | 15.0% | 14.9% | 15.6% | 17.4% | 17.4% | 16.6% | 16.4% | 16.4% | 16.4% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 2.0B | 2.2B | 2.3B | 2.5B | 2.6B | 2.7B | 2.4B | 3.0B | 3.2B | 3.6B | 3.7B | 3.8B | 3.8B |
| EBIT | 500M | 567M | 575M | 611M | 665M | 653M | 705M | 1.4B | 1.5B | 1.4B | 1.4B | 1.3B | 1.3B |
| Op. Margin | 2.9% | 2.9% | 2.9% | 2.9% | 2.9% | 2.8% | 3.4% | 5.3% | 5.3% | 4.6% | 4.3% | 4.0% | 3.9% |
| Net Income | 287M | 326M | 343M | 613M | 471M | 436M | 544M | 1.2B | 1.4B | 1.1B | 969M | 935M | 926M |
| Net Margin | 1.7% | 1.7% | 1.7% | 2.9% | 2.1% | 1.9% | 2.7% | 4.6% | 5.0% | 3.6% | 3.0% | 2.9% | 2.9% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 41M | 0 | 52M | 52M |
| Returns on Capital | |||||||||||||
| ROIC | 12.3% | 12.9% | 11.9% | 15.1% | 11.1% | 7.8% | 8.7% | 15.6% | 16.4% | 14.8% | 12.9% | 10.9% | 11.3% |
| ROE | 18.2% | 18.9% | 19.4% | 29.6% | 18.8% | 16.1% | 17.8% | 32.2% | 33.6% | 25.0% | 19.1% | 17.1% | 16.3% |
| ROA | 4.2% | 4.3% | 4.1% | 6.3% | 4.4% | 3.5% | 4.0% | 8.9% | 10.0% | 7.4% | 5.9% | 5.4% | 5.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 359M | 398M | 371M | 623M | 614M | 518M | 1.2B | 1.3B | 1.5B | 1.1B | 1.2B | 975M | 907M |
| Free Cash Flow | 183M | 198M | 168M | 376M | 309M | 273M | 1.0B | 1.0B | 1.2B | 759M | 853M | 651M | 597M |
| Owner Earnings | 277M | 306M | 267M | 513M | 494M | 392M | 1.1B | 1.1B | 1.3B | 973M | 1.0B | 773M | -456M |
| CapEx | 176M | 200M | 203M | 247M | 306M | 245M | 186M | 249M | 283M | 386M | 378M | 325M | 311M |
| Maint. CapEx | 70M | 78M | 90M | 95M | 104M | 110M | 116M | 122M | 127M | 144M | 161M | 172M | 1.3B |
| Growth CapEx | 106M | 122M | 113M | 152M | 202M | 136M | 70M | 127M | 155M | 242M | 217M | 152M | 0 |
| D&A | 70M | 78M | 90M | 95M | 104M | 110M | 116M | 122M | 127M | 144M | 161M | 172M | 1.3B |
| CapEx/OCF | 49.0% | 51.0% | 54.7% | 39.6% | 49.8% | 47.3% | 15.5% | 19.3% | 19.4% | 34.3% | 30.7% | 33.3% | 34.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 71M | 85M | 95M | 108M | 121M | 131M | 68M | 143M | 154M | 189M | 274M | 344M | 355M |
| Dividend Yield | 2.3% | 2.5% | 3.5% | 3.4% | 3.6% | 4.0% | 2.1% | 2.3% | 2.1% | 2.0% | 2.8% | 3.2% | 2.5% |
| Share Buybacks | 16M | 49M | 174M | 19M | 69M | 169M | 29M | 281M | 869M | 359M | 59M | 159M | 146M |
| Buyback Yield | 0.5% | 1.7% | 4.9% | 0.6% | 2.4% | 4.7% | 0.7% | 3.7% | 11.4% | 3.5% | 0.6% | 1.5% | 1.0% |
| Stock-Based Comp | 12M | 14M | 14M | 15M | 16M | 17M | 26M | 24M | 27M | 28M | 29M | 30M | 30M |
| Debt Repayment | 1.4B | 1.3B | 1.4B | 2.1B | 1.8B | 1.8B | 1.7B | 2.0B | 2.1B | 3.2B | 4.2B | 5.2B | 5.2B |
| Balance Sheet | |||||||||||||
| Net Debt | 1.3B | 1.2B | 1.9B | 2.1B | 2.2B | 4.7B | 4.1B | 3.8B | 3.9B | 4.0B | 4.4B | 4.7B | 2.6B |
| Cash & Equiv. | 36M | 62M | 24M | 46M | 39M | 28M | 50M | 101M | 107M | 96M | 84M | 65M | 84M |
| Long-Term Debt | 1.3B | 1.2B | 1.8B | 2.1B | 2.1B | 2.3B | 1.6B | 1.4B | 1.5B | 1.4B | 1.1B | 1.8B | 2.2B |
| Debt/Equity | 0.82 | 0.71 | 1.07 | 0.90 | 0.85 | 1.70 | 1.25 | 0.97 | 0.98 | 0.86 | 0.82 | 0.85 | 0.47 |
| Interest Coverage | 185.3 | 195.3 | 287.4 | 277.9 | N/A | N/A | 6.3 | 19.8 | 21.1 | 15.2 | 15.6 | 14.0 | 212.6 |
| Equity | 1.7B | 1.8B | 1.8B | 2.4B | 2.6B | 2.8B | 3.3B | 4.1B | 4.1B | 4.7B | 5.4B | 5.6B | 5.7B |
| Total Assets | 7.2B | 8.0B | 8.8B | 10.5B | 10.9B | 13.9B | 13.2B | 13.5B | 14.1B | 15.7B | 17.1B | 17.6B | 18.3B |
| Total Liabilities | 5.5B | 6.2B | 7.1B | 8.1B | 8.3B | 11.1B | 9.9B | 9.4B | 9.9B | 10.9B | 11.7B | 12.0B | 12.6B |
| Intangibles | 386M | 408M | 420M | 474M | 486M | 552M | N/A | 642M | 691M | 877M | 1.1B | 1.2B | 1.3B |
| Retained Earnings | 1.0B | 1.3B | 1.5B | 2.0B | 2.4B | 2.7B | 3.2B | 4.2B | 4.5B | 5.0B | 5.8B | 5.8B | 5.9B |
| Working Capital | 230M | 121M | 164M | 26M | 47M | -117M | -266M | -199M | -49M | 22M | -534M | -87M | -235M |
| Current Assets | 3.9B | 4.4B | 4.4B | 5.0B | 5.1B | 5.3B | 4.4B | 4.1B | 4.7B | 5.7B | 6.0B | 6.2B | 6.3B |
| Current Liabilities | 3.6B | 4.3B | 4.2B | 5.0B | 5.0B | 5.5B | 4.7B | 4.3B | 4.7B | 5.7B | 6.6B | 6.3B | 6.6B |
| Per Share Data | |||||||||||||
| EPS | 3.17 | 3.63 | 3.99 | 7.14 | 5.53 | 5.28 | 6.74 | 14.89 | 18.55 | 16.31 | 14.49 | 14.13 | 14.05 |
| Owner EPS | 3.06 | 3.40 | 3.11 | 5.97 | 5.80 | 4.75 | 13.15 | 14.37 | 17.54 | 14.32 | 15.55 | 11.67 | -6.94 |
| Book Value | 18.27 | 19.93 | 20.37 | 27.88 | 30.63 | 33.84 | 40.95 | 51.02 | 55.76 | 69.52 | 80.77 | 84.02 | 86.14 |
| Cash Flow/Share | 3.97 | 4.43 | 4.32 | 7.25 | 7.21 | 6.28 | 14.90 | 16.20 | 19.61 | 16.85 | 18.40 | 14.73 | 34.35 |
| Dividends/Share | 0.78 | 0.94 | 1.10 | 1.26 | 1.42 | 1.58 | 0.84 | 1.78 | 2.07 | 2.78 | 4.09 | 5.18 | 5.39 |
| Shares Out. | 90.4M | 89.8M | 85.9M | 85.9M | 85.2M | 82.5M | 80.7M | 79.8M | 74.4M | 68.0M | 66.9M | 66.2M | 65.7M |
| Valuation | |||||||||||||
| P/E Ratio | 11.8 | 8.9 | 10.3 | 5.5 | 6.1 | 8.3 | 7.6 | 6.4 | 5.5 | 9.8 | 10.3 | 11.6 | 15.5 |
| P/FCF | 18.5 | 14.7 | 21.0 | 8.9 | 9.3 | 13.3 | 4.1 | 7.3 | 6.5 | 13.6 | 11.7 | 16.7 | 23.9 |
| EV/EBIT | 9.4 | 7.2 | 9.4 | 9.0 | 7.7 | 9.3 | 8.2 | 6.6 | 6.1 | 8.8 | 9.0 | 10.4 | 13.4 |
| Price/Book | 2.1 | 1.6 | 2.0 | 1.4 | 1.1 | 1.3 | 1.3 | 1.9 | 1.8 | 2.2 | 1.8 | 2.0 | 2.5 |
| Price/Sales | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 | 0.3 | 0.4 |
| FCF Yield | 5.4% | 6.8% | 4.8% | 11.2% | 10.8% | 7.5% | 24.6% | 13.8% | 15.4% | 7.4% | 8.6% | 6.0% | 4.2% |
| Market Cap | 3.4B | 2.9B | 3.5B | 3.4B | 2.9B | 3.6B | 4.1B | 7.6B | 7.6B | 10.3B | 10.0B | 10.9B | 14.3B |
| Avg. Price | 34.05 | 38.11 | 31.80 | 37.31 | 39.27 | 39.39 | 39.65 | 76.93 | 98.77 | 138.52 | 147.70 | 161.82 | 217.35 |
| Year-End Price | 37.51 | 32.42 | 41.05 | 39.10 | 33.58 | 44.05 | 51.22 | 94.87 | 102.82 | 151.46 | 149.07 | 164.17 | 217.35 |
PENSKE AUTOMOTIVE GROUP, INC. passes 5 of 9 quality checks, suggesting mixed fundamentals.
PENSKE AUTOMOTIVE GROUP, INC. trades at 15.4x trailing earnings, compared to its 15-year median P/E of 8.0x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 22.0x vs a median of 10.5x. The company's 5-year average ROIC is 14.1% with a gross margin of 16.8%. Total shareholder yield (dividends + buybacks) is 3.5%. At current prices, the estimated annualized return to fair value is +14.1%.
PENSKE AUTOMOTIVE GROUP, INC. (PAG) reported annual revenue of $31.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
PENSKE AUTOMOTIVE GROUP, INC. (PAG) has a net profit margin of 2.9%. This is a modest margin.
PENSKE AUTOMOTIVE GROUP, INC. (PAG) generated $651 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
PENSKE AUTOMOTIVE GROUP, INC. (PAG) has a debt-to-equity ratio of 0.85. This indicates moderate leverage.
PENSKE AUTOMOTIVE GROUP, INC. (PAG) reported earnings per share (EPS) of $14.13 in its most recent fiscal year.
PENSKE AUTOMOTIVE GROUP, INC. (PAG) has a return on equity (ROE) of 17.1%. This indicates the company generates strong returns for shareholders.
PENSKE AUTOMOTIVE GROUP, INC. (PAG) has a 5-year average gross margin of 16.8%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for PENSKE AUTOMOTIVE GROUP, INC. (PAG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PENSKE AUTOMOTIVE GROUP, INC. (PAG) has a book value per share of $84.02, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management anticipates improvement in the commercial truck market with increased new truck orders and industry backlog growth, expecting higher new unit sales in the second half of 2026 as Class 8 orders and the industry backlog have expanded significantly. Service and parts revenue is expected to continue mid-single digit growth driven by an aging vehicle fleet, artificial intelligence initiatives, and targeted customer engagement, with service and parts gross profit representing a substantial portion of segment profitability. The company expects lease return maturities to improve in 2026 after bottoming in 2025, benefiting franchise dealers with increased used vehicle sourcing and supporting overall business performance. Management anticipates positive cash flow impacts from tax reform provisions, including estimated bonus depreciation benefits of $120–150 million annually from the company's 28.9% ownership stake in Penske Transportation Solutions, and continues to evaluate strategic acquisitions and divestitures to optimize portfolio returns.
Based on recent SEC filings and earnings calls, PENSKE AUTOMOTIVE GROUP, INC. (PAG) has provided the following forward guidance: Bonus depreciation cash flow benefit: $120–150 million per year (FY2026 and beyond); Annualized revenue from Australia automotive dealerships: AUD 450 million (FY2025 and beyond); Potential energy solutions business revenue: Over AUD 1 billion (By 2030).