📊 PAG Key Takeaways
Is Penske Automotive Group, Inc.. (PAG) a Good Investment?
Penske Automotive demonstrates solid debt management with conservative leverage (0.39x debt/equity) and strong interest coverage (53.8x), generating positive free cash flow of $650.5M. However, the company faces structural headwinds including thin profitability margins (2.9% net margin), flat revenue growth (-0.2% YoY), and concerning liquidity metrics (current ratio 0.99x), limiting near-term upside.
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.
Why Buy Penske Automotive Group, Inc.. Stock? PAG Key Strengths
- Strong interest coverage ratio (53.8x) indicates robust debt servicing capacity with minimal financial distress risk
- Consistent positive free cash flow generation ($650.5M) with conservative debt/equity ratio (0.39x) provides financial flexibility
- Solid return on equity (16.8%) demonstrates efficient capital utilization despite thin operating margins
- 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
- Margin compression in competitive auto retail sector with net margin of only 2.9% and operating margin of 4.0%, vulnerable to cost shocks
- Liquidity constraints with current ratio below 1.0 (0.99x) and very low quick ratio (0.22x) relative to $31.8B revenue scale
- Revenue stagnation with -0.2% YoY decline indicates lack of growth momentum; minimal cash reserves ($64.7M) relative to business size and $2.2B debt
- 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
- Revenue growth trajectory and same-store sales trends in automotive retail segment
- Gross margin sustainability and operating expense control in inflationary environment
- Free cash flow generation stability and working capital management efficiency
- Current ratio recovery and cash position rebuilding relative to liability obligations
- Operating margin trend
- Liquidity ratios (current and quick)
Penske Automotive Group, Inc.. (PAG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.0% 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $6.9B | $300.8M | $4.41 |
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
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 20, 2026 | DEF 14A | ny20061294x1_def14a.htm | View → |
| Mar 9, 2026 | 4 | xslF345X05/wk-form4_1773057599.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/wk-form4_1773057556.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/wk-form4_1773057496.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/wk-form4_1773057428.xml | View → |
❓ Frequently Asked Questions about PAG
What is the AI rating for PAG?
Penske Automotive Group, Inc.. (PAG) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PAG's key strengths?
Claude: Strong interest coverage ratio (53.8x) indicates robust debt servicing capacity with minimal financial distress risk. Consistent positive free cash flow generation ($650.5M) with conservative debt/equity ratio (0.39x) provides financial flexibility. 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: Margin compression in competitive auto retail sector with net margin of only 2.9% and operating margin of 4.0%, vulnerable to cost shocks. Liquidity constraints with current ratio below 1.0 (0.99x) and very low quick ratio (0.22x) relative to $31.8B revenue scale. 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 $31.8B.
Does PAG pay dividends?
Penske Automotive Group, Inc.. pays dividends, with $343.8M 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 $14.13.
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 rating reflects both perspectives for balanced insights.
Is PAG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Penske Automotive Group, Inc.. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is PAG stock overvalued or undervalued?
Valuation metrics for PAG: ROE of 16.8% (sector avg: 12%), net margin of 2.9% (sector avg: 6%). Higher ROE suggests strong returns relative to peers.
Should I buy PAG stock in 2026?
Our dual AI analysis gives Penske Automotive Group, Inc.. a combined BUY rating 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 $975.1M, with capital expenditures of $324.6M. FCF margin is 2.0%.
How does PAG compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 2.9% (avg: 6%), ROE 16.8% (avg: 12%), current ratio 0.99 (avg: 1.2).