PAGPenske Automotive Group, Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.0×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 16% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
Return on invested capital · cost of capital 9.0% · 2.9 points above what the capital costs: growth creates value
- Operating margin
- 3.9%
Operating margin · Auto & Truck Dealerships median 5.1% · 12 months to Q2 2026
- Cash conversion
- 0.97×
Cash conversion · 0.98× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.68%
Share count, year on year · flat: no meaningful dilution
| 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 Q2 2026
- 16%
- Operating margin12 months to Q2 2026
- 3.9%
- Net margin12 months to Q2 2026
- 2.8%
- Free cash flow margin
- 1.8%
- Revenue, trailing twelve months
- $32.2B
- Free cash flow, trailing twelve months
- $582M
- Net income, trailing twelve months
- $906M
- 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 is operating cash flow over operating profit after tax.
Auto & Truck Dealerships
Ranks #6 of 13 by RyuScore