Penske Automotive Group Inc. (PAG, Financial), a prominent player in the Vehicles & Parts industry, is currently trading at $175.86 per share. With a market capitalization of $11.8 billion, the company's stock price has seen a gain of 8.15% today and a 5.19% increase over the past four weeks. According to the GF Score, a stock performance ranking system developed by GuruFocus, PAG has a score of 86 out of 100. This score indicates good outperformance potential and is closely correlated with the long-term performance of stocks.
Financial Strength Analysis
PAG's Financial Strength rank stands at 5/10. This rank measures the robustness of a company's financial situation, taking into account factors such as the debt burden, debt to revenue ratio, and Altman Z-Score. PAG's interest coverage is 8.23, indicating a manageable debt burden. The company's debt to revenue ratio is 0.25, suggesting a healthy financial structure. Furthermore, the Altman Z score of 3.43 indicates a low probability of financial distress.
Profitability Rank Analysis
The Profitability Rank of PAG is 8/10, reflecting a high level of profitability. The company's Operating Margin is 5.05%, and its Piotroski F-Score is 6 out of 9, indicating a healthy financial situation. The 5-year average trend of the operating margin is 15.80%, suggesting consistent profitability. Moreover, PAG has maintained profitability for the past 10 years, earning it a Predictability Rank of 4 stars out of 5.
Growth Rank Analysis
PAG's Growth Rank is 10/10, indicating strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 7.30%, and its 3-year revenue growth rate is 10.00%. Additionally, the 5-year EBITDA growth rate is 25.30%, further demonstrating the company's robust growth.
GF Value Rank Analysis
The GF Value Rank of PAG is 3/10, which is determined by the price-to-GF-Value ratio. This rank suggests that the stock is currently overvalued.
Momentum Rank Analysis
PAG's Momentum Rank is 6/10, indicating a moderate momentum in the stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its competitors, PAG holds a strong position. CarMax Inc (KMX, Financial) has a GF Score of 90, Lithia Motors Inc (LAD, Financial) has a GF Score of 95, and AutoNation Inc (AN, Financial) has a GF Score of 90. Despite the intense competition, PAG's GF Score of 86 demonstrates its potential to outperform in the market. More details about the competitors can be found here.
Conclusion
In conclusion, Penske Automotive Group Inc. (PAG, Financial) presents a promising investment opportunity with a GF Score of 86, indicating good outperformance potential. The company's strong financial strength, high profitability, robust growth, and moderate momentum, coupled with its competitive position in the Vehicles & Parts industry, make it an attractive option for potential investors.
