Penske Automotive Group Inc. Common Stock (PAG)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a durable business bought at a sensible price. Penske is a large, diversified auto and truck dealer with 28,600 employees across multiple countries. Scale and franchise relationships are real advantages, but this is a cyclical, low-margin business: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $8.5B and net income was $260.4M, a 3.06% margin. For FY2025, the year ended 2025-12-31, Penske earned $935.4M, or $14.13 per diluted share, on $31.8B of revenue. That was down from $968.9M and $14.49 in FY2024 and $1.1B and $16.31 in FY2023, so recent profit direction is negative even though FairStock's computed Lynch category is STALWART, based on 11.5% annual profit growth over five years and 9.2% revenue growth. Financial health is mixed. FairStock's calculated ROE is 15.84%, and its Piotroski F-score is 7/9, but its D/E is 1.61, its ROCE is 4.24%, and its Altman Z-score is 1.58. Free cash flow is $592.1M, and FairStock's FCF yield is 4.6%, which is respectable but not overwhelming. At the 2026-10-13 close of $195.67, FairStock's P/E is 14.22 and P/B is 2.21. Its Graham Number is $165.58, implying the price is about 18% above that asset-and-earnings-based yardstick. FairStock's EV/EBITDA is 12.81. A 2.71% dividend and 0.83 beta add defensive appeal. FairStock's overall score is 63/100. This looks like a fair-to-full price for a good but leveraged, cyclical operator.

In plain English: Penske Automotive Group runs car and truck dealerships in several countries. The business is profitable and produces steady cash, but recent profit has slipped and it uses a lot of borrowed money. At the recent price, investors are paying a moderate amount for those earnings, though it does not look like a bargain compared with its asset value and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer