Penske Automotive Stock Analysis, Valuation (NYSE:PAG)

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$50.95 $0.12 (0.23%) PAG stock closing price Aug 15, 2018 (Closing)

View the Penske Automotive stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for PAG stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Penske Automotive Group, Inc. Stock Rating 3/5

Amigobulls PAG stock analysis takes into account various financial ratios like relative valuation, Penske Automotive revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Penske Automotive dividend performance. Penske Automotive valuation forms a crucial part of our stock analysis. Penske Automotive stock rating is our opinion about the business fundamentals of the company.

Should you buy PAG stock?

  • The Penske Automotive stock currently trades at a price to earnings ratio of 10.3, compared to the sector average of 21.4. We rate this as a positive.
  • When compared with the Retail-Wholesale sector average PS ratio of 0.8, the price-to-sales ratio of 0.2 for PAG stock is attractive.
  • The LTM ROE of 28.8 for Penske Automotive is attractive.

Should you sell PAG stock?

  • Penske Automotive's TTM operating margin of 2.89 was rather poor.
  • Penske Automotive posted a TTM Net margin of 3%.
  • With a debt/equity ratio of 2.28, Penske Automotive is highly leveraged in comparison to Retail-Wholesale peers.

Comments on this video and Penske Automotive stock

Amigobulls Penske Automotive stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Penske Automotive revenue growth and profit or net income are two main metrics which help in identifying whether PAG stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about PAG stock.