# Penske Automotive Group, Inc. (PAG) — Stock CV

Penske Automotive Group, Inc. is a $12.9B consumer company. Revenue grew 7.7% over the last year, it keeps 3¢ of every dollar of sales as profit, and its net debt equals ~2.9 years of free cash flow. It trades at 13.8× earnings — near the highest of its own history.

> Penske Automotive Group operates in 19 US states and overseas. It has about 150 US and Puerto Rico light-vehicle stores as well as 217 franchised dealerships overseas, primarily in the United Kingdom but also in Australia, Germany, Italy, and Japan.

## Identity

- **Ticker**: PAG
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Auto Dealers & Gasoline Stations
- **Headquarters**: BLOOMFIELD HILLS, MI
- **Employees**: 27 700
- **Website**: https://www.penskeautomotive.com
- **Market cap**: $12.9B
- **Last price**: $196.16
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $32.9B
- **Net income**: $936M
- **Free cash flow**: $610M
- **Net debt**: $1.75B
- **P/E**: 13.8
- **Revenue growth (YoY)**: 7.7%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 57 |
| Growth | 32 |
| Profitability | 43 |
| Health | 69 |
| Quality | 80 |
| Moat | 50 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +7.7% YoY
- [x] Profitable — $936M TTM
- [ ] Profit growing — -8.7% YoY
- [x] Generates cash — $610M TTM
- [x] Debt under control — ~2.9y of cash flow to repay
- [x] Established company — $12.9B market cap
- [x] Not printing shares — -17.9% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [x] Financially stable — Altman Z 2.1 — grey
- [x] Pays a dividend — yield 2.83%
- [x] Valuation not extreme — P/E 13.8

## Experience (career milestones)

- **FY2022** — Best year on record: $1.38B net income
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $20.1B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak

## Strengths

- Interest covered 19.2× by operating earnings

## Watch-outs

- Net debt would take ~15.3 years of free cash flow to repay

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $25.6B | $1.19B | $1.04B |
| FY2022 | $27.8B | $1.38B | $1.18B |
| FY2023 | $29.5B | $1.05B | $718M |
| FY2024 | $30.5B | $919M | $811M |
| FY2025 | $31.8B | $935M | $651M |

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Source: https://stockcv.com/PAG — derived from company filings; may be delayed or incomplete. Information, not investment advice.