Penske Automotive Group, Inc.
- Open
- 219.34
- Day high
- 220.06
- Day low
- 219.34
- Prev close
- 218.06
- Volume
- 4K
- Mkt cap
- $14.4B
- P/E (TTM)
- 16.2
- EPS (TTM)
- $13.58
- P/B
- 2.5
- P/S
- 0.4
- Yield
- 2.57%
- Per share
- $5.64
Penske Automotive Group, Inc. (PAG) is a Consumer Cyclical company listed on NYSE. The stock is up 19% over the past year. Drillr has 1 published research article covering PAG.
Penske Automotive Group, Inc. (PAG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PAG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $3.42 | $3.62 | +5.8% | $8.5B | +6.6% |
| Apr 29, 2026 | $2.91 | $3.05 | +4.8% | $7.9B | +2.0% |
| Feb 11, 2026 | $3.19 | $2.91 | -8.8% | $7.8B | +2.9% |
| Oct 29, 2025 | $3.48 | $3.23 | -7.2% | $7.7B | +1.0% |
| Jul 31, 2025 | — | $3.78 | — | $7.7B | — |
| Apr 30, 2025 | $3.28 | $3.39 | +3.4% | $7.6B | -1.6% |
| Feb 13, 2025 | $3.37 | $3.54 | +5.0% | $7.7B | +0.8% |
| Jul 31, 2024 | $3.39 | $3.61 | +6.5% | $7.7B | +1.5% |
| Apr 30, 2024 | $3.35 | $3.21 | -4.2% | $7.4B | -1.0% |
| Feb 7, 2024 | $3.69 | $3.45 | -6.5% | $7.3B | +0.9% |
| Oct 25, 2023 | $4.04 | $3.92 | -3.0% | $7.4B | +2.5% |
| Jul 26, 2023 | $4.19 | $4.41 | +5.3% | $7.5B | +5.2% |
PAG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 5, 2026 | Duerheimer Wolfgangdirector | Grant | 195 | — |
| Jun 5, 2026 | Davis Lisa Anndirector | Grant | 209 | — |
| Jun 5, 2026 | SMITH GREG Cdirector | Grant | 178 | — |
| Jun 5, 2026 | SCOTT RAYMOND Edirector | Grant | 12 | — |
| Jun 5, 2026 | Hoogendoorn Daviddirector | Grant | 12 | — |
| Jun 5, 2026 | Pierce Sandra E.director | Grant | 98 | — |
| May 20, 2026 | SMITH GREG Cdirector | Sell | 1,488 | $160.02 |
| Mar 12, 2026 | KURNICK ROBERT H JRdirector, officer: President | Grant | 9,984 | — |
| Mar 12, 2026 | Denker Claude H IIIofficer: EVP - Human Resources | Grant | 4,992 | — |
| Mar 12, 2026 | Spradlin Shane M.officer: EVP, Gen. Counsel & Sec. | Grant | 4,992 | — |
| Mar 12, 2026 | PENSKE ROGER Sdirector, 10 percent owner, officer: Chair & CEO | Grant | 39,935 | — |
| Mar 12, 2026 | Hulgrave Michelleofficer: EVP & CFO | Grant | 4,992 | — |
| Mar 9, 2026 | Davis Lisa Anndirector | Grant | 223 | — |
| Mar 9, 2026 | SCOTT RAYMOND Edirector | Grant | 13 | — |
| Mar 9, 2026 | Duerheimer Wolfgangdirector | Grant | 208 | — |
Source: PAG SEC Form 4 filings, latest Jun 5, 2026. For informational purposes only — not investment advice.
See the full PAG insider & 13F page →Penske Automotive Group, Inc. company profile
Overview
Penske Automotive Group, Inc. (NYSE:PAG) is a diversified transportation services company founded in 1990 and headquartered in Bloomfield Hills, Michigan. The company went public in 1996 and has grown through strategic acquisitions to become one of the largest automotive retailers globally. PAG operates through multiple business segments including automotive dealerships, commercial truck dealerships, and transportation solutions, with operations spanning the United States, United Kingdom, Australia, New Zealand, and other international markets.
Business
Penske Automotive Group operates in the automotive retail and transportation services industry through four primary business segments. The Retail Automotive segment represents the company's core business, operating 320 automotive dealership franchises across multiple countries. These dealerships sell new and used vehicles from premium brands like BMW, Mercedes-Benz, Audi, Porsche, and others, while also providing vehicle servicing, parts sales, financing, insurance, and collision repair services. This segment generates approximately 64% of the company's earnings. The Retail Commercial Truck segment operates 37 dealerships primarily in the southern and western United States, as well as Canada. These locations sell Freightliner and Western Star branded heavy and medium-duty trucks, along with used commercial vehicles and maintenance services. The company also imports and distributes Western Star trucks, MAN trucks, buses, and Dennis Eagle refuse collection vehicles in Australia and New Zealand markets. The Penske Transportation Solutions (PTS) segment provides comprehensive fleet management services including full-service leasing, contract maintenance, logistics services, and truck rental. This business serves commercial customers who prefer to outsource their transportation needs rather than manage fleets internally. PTS operates one of the largest commercial truck rental fleets in North America. The Other segment includes CarShop (rebranded as Sytner Select in the UK), which focuses on used vehicle retail through standalone locations, and various non-automotive investments. The company's revenue breakdown is approximately 61% from North America, 30% from the UK, and 9% from other international markets, with 72% of total revenue coming from premium automotive brands.
Revenue model
Penske Automotive Group generates revenue through multiple complementary business models. The primary revenue driver is vehicle sales, where the company earns gross profit margins on both new and used vehicle transactions. New vehicle sales typically generate lower per-unit margins but higher volume, while used vehicles can provide higher margins but require more inventory management expertise. The company also generates substantial revenue from service and parts operations, which provide higher-margin, recurring income streams. These operations include routine maintenance, warranty repairs, collision services, and parts sales. Service revenue has grown consistently, reaching record levels of $778 million in recent quarters, with effective labor rates increasing 5-6% annually. Finance and insurance (F&I) services provide commission-based revenue through arranging customer financing, leasing, and selling third-party insurance products and extended warranties. The transportation solutions segment operates on a service contract model, providing fleet management, leasing, and logistics services to commercial customers for monthly fees. Several factors influence the company's margins and profitability. Favorable factors include the company's focus on premium brands which command higher margins, strong service operations that generate recurring revenue, and operational efficiencies gained through scale and technology investments. The company benefits from inventory discipline and pre-sold order books that reduce carrying costs and markdown risks. Challenging factors include potential economic downturns that reduce consumer spending on vehicles, rising interest rates that affect customer financing costs, competitive pressure from other dealers and direct manufacturer sales, and regulatory changes affecting the automotive industry. Electric vehicle adoption presents both opportunities and challenges, as EVs currently require significant discounting and have different service requirements that could impact traditional revenue streams.
Competitive moat
Penske Automotive Group's competitive moat is moderate and primarily derived from its franchise relationships with premium automotive manufacturers. These franchise agreements provide exclusive territorial rights to sell specific brands, creating local monopolies that are difficult for competitors to replicate. The company's focus on premium brands like BMW, Mercedes-Benz, and Porsche provides some protection from price competition, as customers for luxury vehicles are typically less price-sensitive. The company's scale advantages in operations, purchasing, and technology investments create operational efficiencies that smaller independent dealers cannot match. PAG's diversified geographic footprint across multiple countries and its balanced portfolio of automotive retail, commercial trucks, and transportation services provide stability during economic cycles. However, the moat faces significant long-term challenges. The automotive industry is experiencing disruption from electric vehicle adoption, which may alter traditional dealer service revenue streams as EVs require less maintenance. Additionally, some manufacturers are exploring direct-to-consumer sales models that could bypass traditional dealerships entirely. Online vehicle sales platforms and changing consumer preferences toward digital purchasing experiences also threaten the traditional dealer model. The company's transportation solutions business provides a stronger moat through long-term service contracts and the complexity of fleet management services, but this segment faces competition from other large fleet management companies. Overall, while PAG has built a solid position in automotive retail, the industry's structural changes create uncertainty about the durability of traditional dealer advantages.
Risks & safety
The company exhibits a moderate margin of safety with some areas of concern regarding leverage and working capital management. • Liquidity and Cash Position: Cash and short-term investments of $118.4 million is relatively low for a company of this size. Current ratio of 0.90 indicates potential working capital constraints, though this is typical for automotive dealers due to inventory financing arrangements. • Debt and Leverage: Debt-to-equity ratio of 0.77 and total debt-to-capitalization of approximately 26% represents manageable but elevated leverage. The company maintains access to credit facilities for inventory financing. • Valuation Metrics: Trading at P/E ratio of 9.8x and EV/EBITDA of 10.8x suggests reasonable valuation relative to earnings. Price-to-book ratio of 1.78x is moderate for a retail business. • Cash Generation: Strong free cash flow of $206 million in Q1 2025 and $811 million for full year 2024 demonstrates solid cash generation capability. Operating cash flow has been consistently positive. • Other Considerations: The company's dependence on inventory financing and cyclical nature of automotive sales creates some financial risk during economic downturns. However, diversified operations and focus on premium brands provide some stability.
Recent development
Over the past few years, Penske Automotive Group has pursued an aggressive acquisition strategy, completing over $2.1 billion in acquisitions during 2024 alone. Key strategic moves include expanding internationally with the acquisition of Porsche dealerships in Melbourne, Australia, marking the company's entry into the Australian retail automotive market. The company also acquired the Bill Brown Ford dealership, one of the largest Ford dealerships in the United States. The company has focused on operational efficiency improvements, increasing technician headcount by 5-7% annually while implementing digital tools and AI-powered solutions to improve service productivity. Management has emphasized growing the higher-margin service and parts business, which reached record revenue levels and now represents a significant portion of total gross profit. PAG has also been actively managing its electric vehicle inventory challenges, reducing BEV inventory levels from 91 days to 56 days and working with manufacturers to better align production with market demand. The company rebranded its UK used car operation from CarShop to Sytner Select, focusing on a higher-margin, lower-volume strategy. In terms of capital allocation, the company has maintained a balanced approach between growth investments and shareholder returns, increasing its dividend for 17 consecutive years while completing significant share repurchases. The company has also strengthened its balance sheet by maintaining disciplined leverage ratios while funding expansion through a combination of debt and cash flow generation.
PAG company profile · for informational purposes only — not investment advice.
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