📊 PAG Key Takeaways
Is Penske Automotive Group, Inc.. (PAG) a Good Investment?
Penske generates positive cash flow but delivers poor returns on equity (4.1%) and assets (1.3%) with declining revenues and earnings, indicating inefficient capital deployment. Concerning liquidity metrics (0.96x current ratio, 0.22x quick ratio) combined with absent growth trajectory create limited upside against material operational and financial risk.
Penske Automotive shows solid profitability and cash generation with strong ROE and conservative leverage, despite flat revenue and slightly lower earnings. High interest coverage and steady free cash flow support resilience, though thin margins and tight liquidity warrant a measured stance.
Penske Automotive Group, Inc.. Key Strengths (PAG)
- Positive free cash flow generation of $152.4M with strong interest coverage ratio of 12.2x demonstrates ability to service debt and fund operations
- Moderate leverage with debt-to-equity ratio of 0.47x provides financial stability and borrowing capacity
- Established market position in essential automotive retail with $7.9B in revenue
- Strong ROE with modest leverage and excellent interest coverage
- Consistent free cash flow generation supporting reinvestment
- Large revenue base with stable gross margin profile
PAG Stock Risks: Penske Automotive Group, Inc.. Investment Risks
- Poor return on equity (4.1%) and return on assets (1.3%) indicate capital is not generating adequate returns relative to cost of capital
- Weak liquidity position with current ratio of 0.96x and quick ratio of 0.22x creates vulnerability to operational disruptions or economic stress
- No revenue or earnings growth (both declining ~0.2-0.3% YoY) with declining EPS (-2.5% YoY) signals a stagnating to declining business trajectory
- Tight liquidity (sub-1.0 current, low quick) and low cash balance
- Thin operating and net margins vulnerable to mix/competition
- Cyclical auto demand and working-capital swings impacting cash conversion
Key Metrics to Watch
- Quarterly revenue trends and gross margin sustainability
- Return on equity progression and asset efficiency improvements
- Current ratio recovery above 1.0 and cash position strengthening
- Same-store sales growth and automotive market demand indicators
- Operating margin trend
- Liquidity ratios (current and quick)
Penske Automotive Group, Inc.. (PAG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.9% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
PAG Profit Margin, ROE & Profitability Analysis
PAG vs Automotive Sector: How Penske Automotive Group, Inc.. Compares
How Penske Automotive Group, Inc.. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Penske Automotive Group, Inc.. Stock Overvalued? PAG Valuation Analysis 2026
Based on fundamental analysis, Penske Automotive Group, Inc.. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Penske Automotive Group, Inc.. Balance Sheet: PAG Debt, Cash & Liquidity
PAG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Penske Automotive Group, Inc..'s revenue has grown significantly by 25% over the 5-year period, indicating strong business expansion. The most recent EPS of $16.31 reflects profitable operations.
PAG Revenue Growth, EPS Growth & YoY Performance
PAG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $7.9B | $234.5M | $3.56 |
| Q3 2025 | $7.6B | $213.0M | $3.23 |
| Q2 2025 | $7.7B | $241.2M | $3.61 |
| Q1 2025 | $7.4B | $215.2M | $3.21 |
| Q3 2024 | $7.4B | $226.1M | $3.39 |
| Q2 2024 | $7.5B | $241.2M | $3.61 |
| Q1 2024 | $7.3B | $215.2M | $3.21 |
| Q3 2023 | $6.9B | $263.4M | $3.92 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Penske Automotive Group, Inc.. Dividends, Buybacks & Capital Allocation
PAG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Penske Automotive Group, Inc.. (CIK: 0001019849)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PAG
What is the AI rating for PAG?
Penske Automotive Group, Inc.. (PAG) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PAG's key strengths?
Claude: Positive free cash flow generation of $152.4M with strong interest coverage ratio of 12.2x demonstrates ability to service debt and fund operations. Moderate leverage with debt-to-equity ratio of 0.47x provides financial stability and borrowing capacity. ChatGPT: Strong ROE with modest leverage and excellent interest coverage. Consistent free cash flow generation supporting reinvestment.
What are the risks of investing in PAG?
Claude: Poor return on equity (4.1%) and return on assets (1.3%) indicate capital is not generating adequate returns relative to cost of capital. Weak liquidity position with current ratio of 0.96x and quick ratio of 0.22x creates vulnerability to operational disruptions or economic stress. ChatGPT: Tight liquidity (sub-1.0 current, low quick) and low cash balance. Thin operating and net margins vulnerable to mix/competition.
What is PAG's revenue and growth?
Penske Automotive Group, Inc.. reported revenue of $7.9B.
Does PAG pay dividends?
Penske Automotive Group, Inc.. pays dividends, with $92.6M distributed to shareholders in the trailing twelve months.
Where can I find PAG SEC filings?
Official SEC filings for Penske Automotive Group, Inc.. (CIK: 0001019849) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PAG's EPS?
Penske Automotive Group, Inc.. has a diluted EPS of $3.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PAG's fundamental grade?
Based on our AI fundamental analysis in May 2026, Penske Automotive Group, Inc.. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PAG stock overvalued or undervalued?
Valuation metrics for PAG: ROE of 4.1% (sector avg: 12%), net margin of 3.0% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is PAG's AI grade for 2026?
Our dual AI analysis gives Penske Automotive Group, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PAG's free cash flow?
Penske Automotive Group, Inc..'s operating cash flow is $215.0M, with capital expenditures of $62.6M. FCF margin is 1.9%.
How does PAG compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 3.0% (avg: 6%), ROE 4.1% (avg: 12%), current ratio 0.96 (avg: 1.2).