Is Penske Automotive Stock a Good Investment?
Penske Automotive Investment Advice | PAG |
- Examine Penske Automotive's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Penske Automotive's leadership team and their track record. Good management can help Penske Automotive navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automotive Retail space and any emerging trends that could impact Penske Automotive's business and its evolving consumer preferences.
- Compare Penske Automotive's performance and market position to its competitors. Analyze how Penske Automotive is positioned in terms of product offerings, innovation, and market share.
- Check if Penske Automotive pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Penske Automotive's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Penske Automotive Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Penske Automotive Group is a good investment.
Sell | Buy |
Strong Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Penske Automotive Stock
Researching Penske Automotive's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 21.0% of the company outstanding shares are owned by corporate insiders. The book value of Penske Automotive was at this time reported as 78.25. The company recorded earning per share (EPS) of 13.75. Penske Automotive last dividend was issued on the 24th of February 2025. The entity had 2:1 split on the 2nd of June 2006.
To determine if Penske Automotive is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Penske Automotive's research are outlined below:
| Penske Automotive is unlikely to experience financial distress in the next 2 years | |
| Penske Automotive Group has 7.74 B in debt with debt to equity (D/E) ratio of 1.6, which is OK given its current industry classification. Penske Automotive has a current ratio of 0.96, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Penske to invest in growth at high rates of return. | |
| Penske Automotive has a strong financial position based on the latest SEC filings | |
| Over 76.0% of Penske Automotive shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Penske Automotive is a Top Dividend Stock Right Now Should You Buy |
Penske Automotive Quarterly Liabilities And Stockholders Equity |
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Penske Automotive uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Penske Automotive Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Penske Automotive's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of February 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 7th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Penske Automotive's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Penske Automotive's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2000-05-08 | 2000-03-31 | 0.09 | 0.1 | 0.01 | 11 | ||
1997-05-07 | 1997-03-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2010-04-30 | 2010-03-31 | 0.2 | 0.22 | 0.02 | 10 | ||
2010-02-19 | 2009-12-31 | 0.19 | 0.21 | 0.02 | 10 | ||
2002-05-01 | 2002-03-31 | 0.18 | 0.2 | 0.02 | 11 | ||
2001-04-23 | 2001-03-31 | 0.09 | 0.11 | 0.02 | 22 | ||
1998-07-23 | 1998-06-30 | 0.18 | 0.2 | 0.02 | 11 | ||
2010-07-29 | 2010-06-30 | 0.29 | 0.32 | 0.03 | 10 |
Penske Automotive Target Price Consensus
Penske target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Penske Automotive's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 11 | Buy |
Most Penske analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Penske stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Penske Automotive, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationPenske Automotive Target Price Projection
Penske Automotive's current and average target prices are 174.44 and 171.25, respectively. The current price of Penske Automotive is the price at which Penske Automotive Group is currently trading. On the other hand, Penske Automotive's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Penske Automotive Market Quote on 17th of February 2025
Target Price
Analyst Consensus On Penske Automotive Target Price
Penske Automotive Analyst Ratings
Penske Automotive's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Penske Automotive stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Penske Automotive's financials, market performance, and future outlook by experienced professionals. Penske Automotive's historical ratings below, therefore, can serve as a valuable tool for investors.Know Penske Automotive's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Penske Automotive is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Penske Automotive Group backward and forwards among themselves. Penske Automotive's institutional investor refers to the entity that pools money to purchase Penske Automotive's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Goldman Sachs Group Inc | 2024-09-30 | 297.2 K | Bank Of New York Mellon Corp | 2024-12-31 | 263.6 K | American Century Companies Inc | 2024-12-31 | 259.5 K | Amvescap Plc. | 2024-09-30 | 226.6 K | Jpmorgan Chase & Co | 2024-09-30 | 210.7 K | Bruni J V & Co | 2024-12-31 | 200.1 K | Private Management Group Inc | 2024-12-31 | 187.4 K | Horizon Asset Management Inc/ny | 2024-12-31 | 183 K | First Trust Advisors L.p. | 2024-09-30 | 155.2 K | Blackrock Inc | 2024-09-30 | 2.3 M | Vanguard Group Inc | 2024-12-31 | 2 M |
Penske Automotive's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 11.65 B.Market Cap |
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Penske Automotive's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.08 | |
| Return On Capital Employed | 0.12 | 0.08 | |
| Return On Assets | 0.06 | 0.06 | |
| Return On Equity | 0.20 | 0.21 |
Determining Penske Automotive's profitability involves analyzing its financial statements and using various financial metrics to determine if Penske Automotive is a good buy. For example, gross profit margin measures Penske Automotive's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Penske Automotive's profitability and make more informed investment decisions.
Penske Automotive's Earnings Breakdown by Geography
Evaluate Penske Automotive's management efficiency
Penske Automotive has Return on Asset of 0.0508 % which means that on every $100 spent on assets, it made $0.0508 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.185 %, implying that it generated $0.185 on every 100 dollars invested. Penske Automotive's management efficiency ratios could be used to measure how well Penske Automotive manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Penske Automotive's Return On Equity is most likely to increase slightly in the upcoming years. At this time, Penske Automotive's Other Current Assets are most likely to increase significantly in the upcoming years. The Penske Automotive's current Total Current Assets is estimated to increase to about 6.9 B, while Other Assets are projected to decrease to 1.09.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 62.98 | 66.12 | |
| Tangible Book Value Per Share | 23.47 | 24.65 | |
| Enterprise Value Over EBITDA | 9.35 | 4.74 | |
| Price Book Value Ratio | 2.65 | 1.99 | |
| Enterprise Value Multiple | 9.35 | 4.74 | |
| Price Fair Value | 2.65 | 1.99 | |
| Enterprise Value | 16.7 B | 8.6 B |
Evaluating the management effectiveness of Penske Automotive allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Penske Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Basic technical analysis of Penske Stock
As of the 17th of February 2025, Penske Automotive holds the Semi Deviation of 0.9688, risk adjusted performance of 0.0814, and Coefficient Of Variation of 930.75. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Penske Automotive, as well as the relationship between them. Please check Penske Automotive value at risk, and the relationship between the jensen alpha and semi variance to decide if Penske Automotive is priced some-what accurately, providing market reflects its current price of 174.44 per share. Given that Penske Automotive has jensen alpha of 0.1522, we recommend you to check out Penske Automotive's recent market performance to make sure the company can sustain itself at a future point.Penske Automotive's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Penske Automotive insiders, such as employees or executives, is commonly permitted as long as it does not rely on Penske Automotive's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Penske Automotive insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Penske Automotive's Outstanding Corporate Bonds
Penske Automotive issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Penske Automotive uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Penske bonds can be classified according to their maturity, which is the date when Penske Automotive Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| PENSKE AUTOMOTIVE GROUP Corp BondUS70959WAJ27 | View | |
| US70959WAK99 Corp BondUS70959WAK99 | View | |
| US709599AX20 Corp BondUS709599AX20 | View | |
| US709599AZ77 Corp BondUS709599AZ77 | View | |
| US709599AW47 Corp BondUS709599AW47 | View | |
| US709599BE30 Corp BondUS709599BE30 | View | |
| US709599BJ27 Corp BondUS709599BJ27 | View | |
| PENSKE 44 01 JUL 27 Corp BondUS709599BN39 | View |
Understand Penske Automotive's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Penske Automotive's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0814 | |||
| Market Risk Adjusted Performance | 0.1747 | |||
| Mean Deviation | 1.11 | |||
| Semi Deviation | 0.9688 | |||
| Downside Deviation | 1.15 | |||
| Coefficient Of Variation | 930.75 | |||
| Standard Deviation | 1.52 | |||
| Variance | 2.31 | |||
| Information Ratio | 0.1001 | |||
| Jensen Alpha | 0.1522 | |||
| Total Risk Alpha | 0.1508 | |||
| Sortino Ratio | 0.1325 | |||
| Treynor Ratio | 0.1647 | |||
| Maximum Drawdown | 7.08 | |||
| Value At Risk | (1.50) | |||
| Potential Upside | 2.34 | |||
| Downside Variance | 1.32 | |||
| Semi Variance | 0.9386 | |||
| Expected Short fall | (1.26) | |||
| Skewness | 1.47 | |||
| Kurtosis | 4.85 |
| Risk Adjusted Performance | 0.0814 | |||
| Market Risk Adjusted Performance | 0.1747 | |||
| Mean Deviation | 1.11 | |||
| Semi Deviation | 0.9688 | |||
| Downside Deviation | 1.15 | |||
| Coefficient Of Variation | 930.75 | |||
| Standard Deviation | 1.52 | |||
| Variance | 2.31 | |||
| Information Ratio | 0.1001 | |||
| Jensen Alpha | 0.1522 | |||
| Total Risk Alpha | 0.1508 | |||
| Sortino Ratio | 0.1325 | |||
| Treynor Ratio | 0.1647 | |||
| Maximum Drawdown | 7.08 | |||
| Value At Risk | (1.50) | |||
| Potential Upside | 2.34 | |||
| Downside Variance | 1.32 | |||
| Semi Variance | 0.9386 | |||
| Expected Short fall | (1.26) | |||
| Skewness | 1.47 | |||
| Kurtosis | 4.85 |
Consider Penske Automotive's intraday indicators
Penske Automotive intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Penske Automotive stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Penske Automotive Corporate Filings
8K | 13th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 13th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 30th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
| 18th of June 2024 Other Reports | ViewVerify |
Penske Stock media impact
Far too much social signal, news, headlines, and media speculation about Penske Automotive that are available to investors today. That information is available publicly through Penske media outlets and privately through word of mouth or via Penske internal channels. However, regardless of the origin, that massive amount of Penske data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Penske Automotive news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Penske Automotive relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Penske Automotive's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Penske Automotive alpha.
Penske Automotive Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Penske Automotive can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Penske Automotive Historical Investor Sentiment
Investor biases related to Penske Automotive's public news can be used to forecast risks associated with an investment in Penske. The trend in average sentiment can be used to explain how an investor holding Penske can time the market purely based on public headlines and social activities around Penske Automotive Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Penske Automotive's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Penske Automotive and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Penske Automotive news discussions. The higher the estimate score, the more favorable the investor's outlook on Penske Automotive.
Penske Automotive Maximum Pain Price Across May 16th 2025 Option Contracts
Penske Automotive's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Penske Automotive close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Penske Automotive's options.
Penske Automotive Corporate Directors
| H Thompson | Lead Independent Director | Profile | |
| Sandra Pierce | Independent Director | Profile | |
| Michael Eisenson | Independent Director | Profile | |
| Lisa Davis | Independent Director | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Penske Automotive Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Penske Automotive. If investors know Penske will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Penske Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.247 | Dividend Share 4.44 | Earnings Share 13.75 | Revenue Per Share | Quarterly Revenue Growth 0.062 |
The market value of Penske Automotive is measured differently than its book value, which is the value of Penske that is recorded on the company's balance sheet. Investors also form their own opinion of Penske Automotive's value that differs from its market value or its book value, called intrinsic value, which is Penske Automotive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Penske Automotive's market value can be influenced by many factors that don't directly affect Penske Automotive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Penske Automotive's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Penske Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Penske Automotive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.