PAG
Consumer CyclicalPenske Automotive Group, Inc. · Auto - Dealerships · $11B
What is Penske Automotive Group, Inc.?
Penske Automotive Group is a large-cap, diversified transportation services company operating hundreds of automotive and commercial truck dealerships across the United States and internationally. Founded in 1996 and headquartered in Bloomfield Hills, Michigan, it ranks among the largest automotive retail groups in the world.
Penske Automotive generates revenue through four main segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. Its dealerships sell new and used vehicles, arrange financing and lease contracts, place insurance and aftermarket products, and provide vehicle repair and collision services. The company also operates CarShop used-vehicle stores and distributes heavy-duty trucks, buses, and commercial vehicles across Australia, New Zealand, and parts of the Pacific.
Penske Automotive Group was founded in 1996 and is headquartered in Bloomfield Hills, Michigan.
- New and used vehicle sales across hundreds of franchise dealerships
- Vehicle financing, leasing, and third-party insurance placement
- Collision repair and vehicle maintenance services
- Commercial truck sales under Freightliner and Western Star brands
- Heavy-duty truck and bus distribution across Australia and New Zealand
Is PAG a Good Stock to Buy?
UQS Score rates PAG as Poor overall, reflecting meaningful headwinds across several key quality dimensions.
Among the five pillars, Valuation stands out as the relative bright spot — PAG's shares appear attractively priced compared to sector peers, which may interest value-oriented investors. The Quality pillar lands at a Neutral rating, suggesting the business generates adequate but unremarkable returns relative to its asset base.
Moat, Growth, and Risk all register as Weak, indicating limited competitive differentiation, constrained expansion prospects, and above-average balance sheet or operational vulnerabilities for a consumer cyclical business.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does PAG pay dividends?
Yes — Penske Automotive Group, Inc. pays a dividend.
Penske Automotive pays a regular dividend, which is relatively uncommon among large automotive retailers. The dividend reflects the company's ability to return cash to shareholders even within a capital-intensive, cyclical industry. Income-focused investors may find the payout cadence appealing, though the Weak Risk pillar warrants attention when assessing dividend sustainability.
When does PAG report earnings?
Penske Automotive Group reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
The company's Growth pillar is rated Weak, suggesting recent top- and bottom-line expansion has lagged sector peers. Automotive retail is inherently cyclical, and macro pressures on vehicle affordability and inventory normalization have weighed on the broader dealer group.
For the most recent quarter's results and guidance, visit Penske Automotive Group's investor relations page directly.
PAG Price History
+109.9% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Penske Automotive Group, Inc.?
Based on Penske Automotive Group, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
PAG Long-term Outlook
PAG's fundamental outlook is tempered by Weak ratings across Growth, Moat, and Risk pillars. The automotive retail sector faces ongoing headwinds from normalizing vehicle margins, rising interest rates affecting consumer financing, and potential demand softness in commercial trucking. The Valuation pillar's Good rating suggests the market may already be pricing in these challenges, leaving limited upside catalyst unless macro conditions improve meaningfully.
Growth drivers
- International dealership footprint providing geographic revenue diversification
- Commercial truck and distribution segments offering non-retail revenue streams
- Aftermarket services and financing products as higher-margin recurring revenue
Key risks
- Cyclical consumer demand sensitivity in automotive retail
- Weak Moat rating signals limited pricing power versus peers and direct-to-consumer brands
- Elevated Risk pillar flags potential balance sheet or operational vulnerabilities
PAG vs Peers
Penske Automotive competes in a concentrated automotive retail sector alongside several large national dealer groups.
AutoNation is the largest US-only automotive retailer, with a heavy focus on domestic franchise dealerships and a growing used-vehicle brand.
Lithia has pursued an aggressive acquisition-led growth strategy, rapidly expanding its dealership count and digital retail capabilities.
CarMax operates exclusively in used vehicles with a no-haggle pricing model, differentiating it from traditional franchise dealer groups like PAG.
Frequently Asked Questions
What does Penske Automotive Group do?
Penske Automotive Group operates automotive and commercial truck dealerships across the United States and internationally. It sells new and used vehicles, arranges financing and insurance, provides repair services, and distributes heavy-duty trucks and buses in Australia, New Zealand, and parts of the Pacific.
Does PAG pay dividends?
Yes, Penske Automotive Group pays a regular dividend. This is relatively uncommon among large automotive retailers and may appeal to income-focused investors. However, the company's Weak Risk pillar rating is worth considering when evaluating dividend reliability over time.
When does PAG report earnings?
Penske Automotive reports on a standard quarterly cadence. For exact dates of upcoming earnings releases, check the investor relations section of the company's official website, as our data source does not cover specific calendar dates.
Is PAG a good stock to buy?
The UQS Score rates PAG as Poor overall, driven by Weak scores across Moat, Growth, and Risk pillars. The Valuation pillar does show a Good rating, which may interest value-oriented investors. The complete pillar breakdown is available to UQS Pro members.
Is PAG overvalued?
Based on the UQS Valuation pillar, PAG currently rates as Good — meaning shares appear attractively priced relative to sector peers. This is one of the few positive signals in an otherwise Poor overall UQS composite rating.
How does PAG compare to its competitors?
PAG operates internationally at a scale that distinguishes it from purely domestic peers like AutoNation. Compared to Lithia Motors, PAG has a more established international footprint rather than a domestic acquisition-led model. CarMax focuses exclusively on used vehicles, while PAG spans new, used, and commercial trucks.
What is PAG's market cap bracket?
Penske Automotive Group is classified as a large-cap company. This places it among the more substantial publicly traded automotive retailers, though its overall UQS Score of Poor reflects quality and growth challenges despite its size.
Who founded Penske Automotive Group?
Penske Automotive Group was founded in 1996. The company is associated with Roger Penske, the prominent businessman and motorsport figure. Full founding history is widely available through the company's official investor materials.
Is PAG a long-term quality investment?
As a long-term quality indicator, PAG's UQS Score of Poor — with Weak ratings on Moat, Growth, and Risk — suggests the business faces structural challenges that may limit compounding potential. The Valuation pillar's Good rating offers some cushion, but long-term quality investors typically seek stronger moat and growth profiles.
What is the main competitive advantage of Penske Automotive Group?
PAG's scale and international diversification — with over 320 retail automotive franchises and operations across multiple continents — provide some operational breadth. However, the UQS Moat pillar rates as Weak, indicating limited durable competitive advantages relative to the broader sector.
What sector does PAG belong to?
Penske Automotive Group belongs to the Consumer Cyclical sector. This means its business performance is closely tied to broader economic conditions, consumer confidence, and vehicle affordability — all of which can fluctuate significantly across economic cycles.
Is PAG a growth stock or value stock?
Based on UQS pillar labels, PAG leans toward value rather than growth. The Growth pillar is rated Weak, while the Valuation pillar is rated Good — suggesting the stock is priced modestly relative to peers but is not demonstrating strong expansion momentum.
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Pro Analysis
PAG — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 7, 2026 | 30.8 | 42.9 | 24.0 | 12.0 | 14.3 | 63.8 | +0.1 |
| May 4, 2026 | 30.7 | 42.9 | 24.0 | 11.2 | 14.3 | 63.8 | +0.3 |
| May 3, 2026 | 30.4 | 42.9 | 24.0 | 9.9 | 14.3 | 63.5 | -0.3 |
| Apr 26, 2026 | 30.7 | 42.9 | 24.0 | 9.9 | 14.3 | 65.4 | +0.1 |
| Apr 21, 2026 | 30.6 | 42.9 | 24.0 | 9.9 | 14.3 | 65.2 | -0.1 |
| Apr 19, 2026 | 30.7 | 42.9 | 24.0 | 10.1 | 14.3 | 65.3 | -0.1 |
| Apr 18, 2026 | 30.8 | 42.9 | 24.0 | 10.1 | 14.3 | 66.1 | +0.5 |
| Apr 15, 2026 | 30.3 | 42.9 | 24.0 | 10.1 | 14.3 | 63.0 | -0.2 |
| Apr 12, 2026 | 30.5 | 42.9 | 24.0 | 10.7 | 14.3 | 63.4 | -0.3 |
| Apr 11, 2026 | 30.8 | 42.9 | 24.0 | 10.7 | 14.3 | 65.4 | -0.1 |
PAG — Pillar Breakdown
Quality
— 39.9/100 (25%)Penske Automotive Group, Inc. has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 12.4/100 (20%)Penske Automotive Group, Inc. faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 15.5/100 (15%)Penske Automotive Group, Inc. presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 60.2/100 (15%)Penske Automotive Group, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 24/100 (25%)Penske Automotive Group, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for PAG.
Score Composition
Financial Data
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How is the PAG UQS Score Calculated?
The UQS (Unified Quality Score) for Penske Automotive Group, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Penske Automotive Group, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Penske Automotive Group, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.