Is the business good?
How good a business is PAG?
Penske Automotive Group, Inc. earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
12%
Return on invested capital · cost of capital 9.0% · 3.1 points above what the capital costs: growth creates value
- Operating margin
- 4.0%
Operating margin · Auto & Truck Dealerships median 5.3% · 12 months to Q1 2026
- Cash conversion
- 0.65×
Cash conversion · 0.71× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −1.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 3.5% |
| FY2021 | 5.3% |
| FY2022 | 5.3% |
| FY2023 | 4.6% |
| FY2024 | 4.3% |
| FY2025 | 4.0% |
Details›
- Gross margin12 months to Q1 2026
- 16%
- Operating margin12 months to Q1 2026
- 4.0%
- Net margin12 months to Q1 2026
- 2.9%
- Free cash flow margin
- 1.9%
- Revenue, trailing twelve months
- $31.7B
- Free cash flow, trailing twelve months
- $589M
- Net income, trailing twelve months
- $912M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Auto & Truck Dealerships
Ranks #12 of 15 by Smart Score