Penske Automotive Group PAG
United StatesConsumer Cyclical · Auto & Truck DealershipsUSD
209.38 USD (+7.8%)
8 analysts
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Penske Automotive Group is an automotive and commercial vehicle dealership operating in the United States and the United Kingdom, selling new and used vehicles, as well as offering financing, rental, and after-sales services.
Key points
from its scores- ✓Good share-price trend8.8
- ✓Attractive dividend7.4
- ✕Fragile balance sheet1.9
- ✕Little competitive advantage3.7
- ✕Weak growth4.7
AI analysis
bottom line, main risk, context and newsHigh debt and a narrow margin warrant caution, but valuation and dividend offer some support.
Penske Automotive shows weak financial health (Net Debt/EBITDA of 6.67) and a narrow operating margin (3.97%), although its valuation is moderate (P/E 13.66) and its dividend is attractive (net yield 2.97%). Earnings growth is negative (-1.70%), which limits its appeal despite strong momentum (34.67%).
The main risk is its high leverage (Net Debt/EBITDA of 6.67), which in a rising rate environment could increase financial costs and further compress its operating margin of 3.97%.
Context and risks
Penske Automotive operates in a sector (auto dealerships) with moderate regulatory risk in the United States, reflected in its governance profile. Its high leverage (Net Debt/EBITDA of 6.67) amplifies sensitivity to a rising interest rate environment, increasing its financing costs and pressuring its already narrow operating margin (3.97%).
Is Penske Automotive Group stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Consumer Cyclical median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 13.7 | 17.8 | −23% |
| EV / EBITDA | 15.8 | 11.2 | +41% |
| Price / book | 2.2 | 2.9 | −24% |
| Price / sales | 0.4 | 1.3 | −68% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.8 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 209.38 USD, +7.8% versus the price.
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 13.7
- Forward P/E
- 13.8
- EV / EBITDA
- 15.8
- Price / book
- 2.2
- Price / sales
- 0.4
- PEG
- 2.00
- Market cap
- 12.8B USD
- Enterprise value
- 22.1B USD
Profitability
- ROE
- 15.8%
- ROA
- 4.2%
- ROIC (approx.)
- 8.4%
- Gross margin
- 16.1%
- Operating margin
- 4.0%
- Net margin
- 2.8%
- Free cash flow
- 218.1M USD
- FCF yield
- 1.7%
- Cash conversion
- 16%
Solvency
- Total debt
- 9.4B USD
- Net debt
- 9.3B USD
- Cash
- 69.5M USD
- EBITDA
- 1.4B USD
- Net debt / EBITDA
- 6.67
- Debt / equity
- 160.65
- Current ratio
- 0.97
- Quick ratio
- 0.17
Growth
- Revenue growth
- +6.0%
- Earnings growth
- −1.7%
- EPS (TTM)
- 14.22 USD
- EPS (forward)
- 14.09 USD
Dividend
- Dividend yield
- 3.0%
- Payout
- 38.8%
Risk and market
- Beta
- 0.91
- Analyst consensus
- Hold (8)
- Target price
- 209.38 USD
- 52-week range
- 140.12 – 227.00
Recent news
All PAG news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Penske Automotive Group
Is Penske Automotive Group stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Consumer Cyclical median (within 15%). Valuation score: 5.8 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 209.38 USD, +7.8% versus the price. This is not investment advice.
What score does Penske Automotive Group get on MeridIAn Screener?
It scores 5.1 out of 10, rank 1,661 of 2,130 (better than 21% of the companies analysed). Its strongest category is Momentum (8.8) and its weakest, Financial health (1.9). Analysis of 08/10/2026.
What is Penske Automotive Group's P/E ratio?
Its P/E is 13.7: the share price equals 13.7 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 13.8.
How much is Penske Automotive Group worth on the stock market?
Its market capitalisation is 12.8B USD and its enterprise value, debt included, is 22.1B USD.
How much debt does Penske Automotive Group have?
Its net debt (debt minus cash) is 9.3B USD. That is 6.67 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Penske Automotive Group pay a dividend?
Yes: its dividend yield is 2.97% and it pays out 39% of its earnings.
How has Penske Automotive Group stock performed over the last year?
It has risen 21.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 140.12 and 227.00 USD. Past performance does not guarantee future results.
What do analysts think of Penske Automotive Group?
8 analysts cover it; their average recommendation is “Hold” and their average target is 209.38 USD (+7.8% versus the price). It is an estimate, not market data.