Penske Automotive Group, Inc. (PAG) AI Stock Analysis

Penske Automotive Group, Inc. operates a global network of automotive and commercial truck dealerships organized into Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments segments. The company retails new and used motor vehicles, provides vehicle and collision repair services, arranges financing and leasing, and sells third-party insurance and aftermarket solutions alongside wholesale automotive parts. Its commercial truck business operates dealerships offering Freightliner and Western Star brands alongside used truck sales and maintenance. Globally, Penske imports and distributes heavy-duty trucks, buses, refuse vehicles, and diesel and gas engines across Australia, New Zealand, and parts of the Pacific.

Penske Automotive grew revenue from $25.55B in FY2021 to $31.81B in FY2025, achieving a 5-year revenue CAGR of 9.2% from FY2020 to FY2025. Annual net income peaked at $1.38B in FY2022 before dropping to $968.9M in FY2024 and $935.4M in FY2025, alongside an operating margin of 4.0% in FY2025 down from 5.3% in FY2021 and FY2022. For the trailing twelve months ended June 30, 2026, revenue stood at $32.20B with an operating margin of 4.0% and EPS of $14.22. In the latest quarter, revenue grew 6.0% year-over-year while quarterly earnings declined 1.7%.

As of June 30, 2026, Penske Automotive held $69.5M in cash and short-term investments against $9.25B in total debt, resulting in net debt of $9.18B. Shareholders' equity was $5.83B, yielding a debt-to-equity ratio of 1.59 and a current ratio of 0.98. In FY2025, operating cash flow reached $975.1M and free cash flow was $650.5M. The company directed capital toward $324.6M in capital expenditures, $343.8M in dividends paid, and $159.1M in share buybacks, lowering its share count by 15.7% over 5 years.

PAG trades at a trailing P/E of 14.9x and a forward P/E of 14.7x, compared to medians of 18.0x and 14.1x for its US-listed Consumer Cyclical peers. The stock's price-to-sales multiple is 0.4x versus 0.7x for peer group medians, while its EV/EBITDA of 13.6x exceeds the peer median of 11.1x. Penske Automotive returned 29.7% over the past year and 132.2% over five years, outperforming the S&P 500 (SPY) returns of 16.8% and 83.0% over the same periods.

Penske Automotive offers a forward annual dividend of $5.84 per share, representing a dividend yield of 2.75% and a payout ratio of 44.9%. Dividends are paid quarterly, and the company has paid dividends for 16 consecutive years. The dividend grew at an annualized rate of 43.9% over five years, with the last ex-dividend date on November 13, 2026.

Wall Street analysts cover PAG with 1 Strong Buy, 1 Buy, 7 Holds, and 0 Sell ratings. The mean price target is $210.57, which sits 0.9% below the last close of $212.42. For the fiscal year ending December 31, 2026, analysts estimate revenue of $32.63B and EPS of $13.24, followed by $33.57B in revenue and EPS of $14.05 for FY2027. Penske beat EPS expectations in 2 of the last 4 quarters, and the next earnings date is November 4, 2026.

This page is an AI-written research summary of Penske Automotive Group, Inc. (PAG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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