Penske Automotive Group Inc. (PAG, Financial), a prominent player in the Vehicles & Parts industry, is currently trading at $174.12 with a market capitalization of $11.72 billion. Despite a slight dip of 2.50% over the past four weeks, the stock has seen a gain of 5.14% today. The company's GF Score stands at 81 out of 100, indicating good outperformance potential. The GF Score is a comprehensive stock performance ranking system developed by GuruFocus, which considers five key aspects of valuation: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank.
Financial Strength Analysis
PAG's Financial Strength Rank is 6/10, reflecting a relatively strong financial situation. The company's interest coverage is 8.23, indicating its ability to cover its interest expenses. Furthermore, its debt to revenue ratio is 0.25, suggesting a manageable debt burden. The Altman Z score of 3.44 further confirms the company's financial stability.
Profitability Rank Analysis
The company's Profitability Rank is 8/10, indicating a high level of profitability. The Operating Margin is 5.05%, and the Piotroski F-Score is 6, suggesting a healthy financial situation. The company has maintained consistent profitability over the past 10 years, with a 5-year average operating margin of 15.80% and a Predictability Rank of 4.
Growth Rank Analysis
PAG's Growth Rank is 10/10, reflecting strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 7.30%, and the 3-year revenue growth rate is 10.00%. The 5-year EBITDA growth rate is an impressive 25.30%, indicating robust operational growth.
GF Value Rank Analysis
The company's GF Value Rank is 1/10, suggesting that the stock is currently overvalued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
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.
Competitive Analysis
When compared to its main competitors in the same industry, PAG holds a competitive position. CarMax Inc (KMX, Financial) has a GF Score of 89, Lithia Motors Inc (LAD, Financial) has a GF Score of 95, and AutoNation Inc (AN, Financial) has a GF Score of 90. Despite the slightly lower GF Score, PAG's strong financial strength, profitability, and growth potential make it a compelling choice for investors. For more details, please visit our competitors page.
In conclusion, Penske Automotive Group Inc. (PAG, Financial) presents a good outperformance potential with a GF Score of 81. Its strong financial strength, high profitability, and robust growth make it a promising investment option. However, investors should also consider its current overvaluation and moderate momentum before making investment decisions.
