Penske Automotive Group, Inc.

Valuation Analysis

About the Company

Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships in the United States, the United Kingdom, Germany, Italy, Japan, Canada, Australia, New Zealand, and internationally. It operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. The company operates franchise dealerships under franchise agreements with various automotive manufacturers and distributors. It is also involved in the sale of new and used vehicles, maintenance and repair services, sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, collision repair services, and wholesale of p

Penske Automotive Group, Inc. Stock at a Glance

Penske Automotive Group, Inc. (PAG) is currently trading at $180.96 with a market capitalization of $11.9B. The trailing P/E ratio stands at 13.08x, with a forward P/E of 12.57x. The 52-week range spans from $140.12 to $189.51; the current price is 4.5% below the yearly high. Year-over-year revenue growth stands at -1.1%. The net profit margin stands at 2.88%.

💰 Dividend

Penske Automotive Group, Inc. pays an annual dividend of $5.68 per share, representing a yield of 3.14%. The payout ratio stands at 38.76%.

📊 Analyst Rating

10 analysts rate Penske Automotive Group, Inc. (PAG) on consensus: Buy. The average price target is $184.70, implying +2.07% from the current price. Analyst price targets range from $160.00 to $206.00.

Penske Automotive Group, Inc.: The Investment Case in Detail

Penske Automotive Group, Inc. (PAG) operates in the Consumer Cyclical — specifically Auto & Truck Dealerships — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue is contracting at -1.1% year-over-year — until that trend reverses, valuation is exposed to further downgrades. With a net margin of just 2.88%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Short interest sits at 14.35% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

What to Watch Next

• The dividend yield near 3.14% combined with a payout ratio of 38.76% leaves room for further hikes — a track record of consecutive raises is a strong income signal.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (14.35%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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