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Upturn AI SWOT - About
Penske Automotive Group Inc (PAG)
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Upturn Advisory Summary
03/26/2025: PAG (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -23.36% | Avg. Invested days 27 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/26/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.46B USD | Price to earnings Ratio 10.31 | 1Y Target Price 173.91 |
Price to earnings Ratio 10.31 | 1Y Target Price 173.91 | ||
Volume (30-day avg) 249220 | Beta 1.03 | 52 Weeks Range 136.86 - 178.77 | Updated Date 04/4/2025 |
52 Weeks Range 136.86 - 178.77 | Updated Date 04/4/2025 | ||
Dividends yield (FY) 3.15% | Basic EPS (TTM) 13.75 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 3.02% | Operating Margin (TTM) 4.32% |
Management Effectiveness
Return on Assets (TTM) 5.08% | Return on Equity (TTM) 18.5% |
Valuation
Trailing PE 10.31 | Forward PE 10.22 | Enterprise Value 17615564299 | Price to Sales(TTM) 0.31 |
Enterprise Value 17615564299 | Price to Sales(TTM) 0.31 | ||
Enterprise Value to Revenue 0.58 | Enterprise Value to EBITDA 10.51 | Shares Outstanding 66747200 | Shares Floating 18323329 |
Shares Outstanding 66747200 | Shares Floating 18323329 | ||
Percent Insiders 21.15 | Percent Institutions 75.72 |
Analyst Ratings
Rating 3.73 | Target Price 171.25 | Buy 1 | Strong Buy 4 |
Buy 1 | Strong Buy 4 | ||
Hold 5 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Penske Automotive Group Inc
Company Overview
History and Background
Penske Automotive Group Inc. was founded in 1990 as United Auto Group. It changed its name to Penske Automotive Group in 2007 to align with the Penske brand. The company grew through strategic acquisitions, becoming one of the largest automotive retailers in the world.
Core Business Areas
- Retail Automotive: This segment involves the sale of new and used vehicles, as well as related service and parts sales through franchised dealerships.
- Retail Commercial Truck: This segment focuses on the sale, service, and parts distribution for commercial trucks.
- Other: This segment includes operations of Penske Cars (motorsport team), and other minor operations.
Leadership and Structure
Roger S. Penske is the Chairman of the Board. The company has a traditional hierarchical structure with executive leadership overseeing various operational divisions.
Top Products and Market Share
Key Offerings
- New Vehicle Sales: Penske Automotive Group sells new vehicles from various manufacturers, including luxury, premium, and mass-market brands. Competitors include AutoNation, Group 1 Automotive and Lithia Motors. Market share fluctuates based on brand mix and geographic locations, not reported to the public.
- Used Vehicle Sales: The company sells used vehicles through its dealerships. Competitors include CarMax, Carvana, and other dealership groups. Market share fluctuates based on brand mix and geographic locations, not reported to the public.
- Service and Parts: Penske Automotive Group provides vehicle maintenance, repair, and parts sales. Competitors include independent repair shops and other dealership groups. Market share fluctuates based on brand mix and geographic locations, not reported to the public.
Market Dynamics
Industry Overview
The automotive retail industry is cyclical and highly competitive. It is influenced by economic conditions, consumer confidence, and manufacturer incentives. The industry is undergoing a shift towards electric vehicles and online sales.
Positioning
Penske Automotive Group is a leading player in the automotive retail industry, known for its premium and luxury brands, strong service operations, and extensive dealership network. Their competitive advantage lies in their brand reputation, scale, and efficient operations.
Total Addressable Market (TAM)
The TAM for automotive retail is estimated to be in the trillions of dollars globally. Penske Automotive Group captures a small but significant portion of this TAM through its dealerships. The company is well-positioned to capitalize on the growing demand for electric vehicles and online sales.
Upturn SWOT Analysis
Strengths
- Strong brand reputation
- Extensive dealership network
- Diverse brand portfolio
- Experienced management team
- Strong service operations
Weaknesses
- Dependence on economic conditions
- High capital expenditures
- Exposure to manufacturer recalls
- Inventory management challenges
Opportunities
- Expansion into new markets
- Growth in electric vehicle sales
- Development of online sales platforms
- Acquisition of smaller dealerships
- Increased focus on customer experience
Threats
- Economic downturns
- Increased competition
- Changes in consumer preferences
- Manufacturer direct sales
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- AN
- GPI
- LAD
Competitive Landscape
Penske Automotive Group competes with other large automotive retailers. Their competitive advantage lies in their premium and luxury brands, strong service operations, and experienced management team.
Major Acquisitions
Rybrook Group
- Year: 2019
- Acquisition Price (USD millions): 465
- Strategic Rationale: Expanded Penske's luxury dealership network in the United Kingdom.
Growth Trajectory and Initiatives
Historical Growth: Penske Automotive Group has grown through organic growth and acquisitions. The company has expanded its dealership network and diversified its brand portfolio.
Future Projections: Analysts project continued growth for Penske Automotive Group, driven by increased vehicle sales, service revenue, and strategic acquisitions.
Recent Initiatives: Recent initiatives include investments in online sales platforms, expansion of electric vehicle offerings, and acquisitions of dealerships in key markets.
Summary
Penske Automotive Group is a strong player in the automotive retail industry, boasting a diverse portfolio and experienced leadership. The company's strong brand reputation and extensive network are key assets. However, Penske needs to navigate economic cycles and increasing competition. The company should capitalize on growth opportunities in the EV market and online sales.
Similar Companies
ABG
Asbury Automotive Group Inc
ABG
Asbury Automotive Group Inc
AN
AutoNation Inc
AN
AutoNation Inc
GPI
Group 1 Automotive Inc
GPI
Group 1 Automotive Inc
LAD
Lithia Motors Inc
LAD
Lithia Motors Inc
Sources and Disclaimers
Data Sources:
- Company filings, Analyst reports, Industry publications
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market share data is estimated and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Penske Automotive Group Inc
Exchange NYSE | Headquaters Bloomfield Hills, MI, United States | ||
IPO Launch date 1996-10-23 | Chairman & CEO Mr. Roger S. Penske Sr. | ||
Sector Consumer Cyclical | Industry Auto & Truck Dealerships | Full time employees 28900 | Website https://www.penskeautomotive.com |
Full time employees 28900 | Website https://www.penskeautomotive.com | ||
Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors. The company is also involved in the sale of new and used vehicles, maintenance and repair services, sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, collision repair services, and wholesale of parts. In addition, it operates a heavy and medium duty truck dealership, which offers Freightliner and Western Star branded trucks, as well as offers a range of used trucks. Further, it imports and distributes Western Star heavy-duty trucks, MAN heavy and medium duty trucks and buses, and Dennis Eagle refuse collection vehicles with associated parts, as well as distributes diesel and gas engines, and power systems. The company was incorporated in 1990 and is headquartered in Bloomfield Hills, Michigan. Penske Automotive Group, Inc. is a subsidiary of Penske Corporation, Inc.
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