Penske Automotive Group, Inc.PAG
NYSE•Consumer Cyclical•Auto & Truck Dealerships
Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships in the United States, the United Kingdom, Germany, Italy, Japan, Canada, Australia, New Zealand, and internationally. It operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. The company operates franchise dealerships under franchise agreements with various automotive manufacturers and distributors. It 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, the company 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. Penske Automotive Group, Inc. was incorporated in 1990 and is headquartered in Bloomfield Hills, Michigan.
Penske Automotive Group, Inc. (PAG) reported trailing twelve months revenue of $32.07B as of March 2026, a 4.8% increase year-over-year. Quarterly revenue reached $7.86B, reflecting continued top-line momentum.
Penske Automotive Group, Inc. generated $925.60M in TTM net income, with quarterly EBITDA of $333.80M. The operating margin contracted from 4.1% to 3.7%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (3.7%) and net margin (3.0%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 3.2% a year ago, reflecting increased costs or interest expense.
PAG trades at a P/E of 10.5x (below the broader market average) and a P/S of 0.3x. The price-to-book ratio of 1.7x reflects a moderate premium to book value.
The company generated $152.40M in free cash flow over the trailing twelve months, a 26.1% decrease year-over-year, indicating cash generation ability. The balance sheet shows $18.32B in total assets with $2.21B in long-term debt against $5.66B in stockholders equity for a debt-to-equity ratio of 0.4, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~4.1% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 17.1% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (6 of 7 quarters up), with ~7.4% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 7.9% — watch for continued compression, which may signal competitive or cost pressure.
FCF consistently trails net income (avg 0.7x) — earnings may be inflated by non-cash items or aggressive accounting.
Debt-to-equity has risen 112.4% recently — increasing financial risk even if the current ratio is manageable.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.