Penske Automotive Group (NYSE: PAG)
QVI Research Report | Updated Coverage | January 2024
Summary:
Although underfollowed by investors, Penske Automotive Group is a favorite among customers and employees. It’s a fabulously run, enduring enterprise with a highly competitive value proposition.
The company’s current wealth analysis uncovers bullish ratings in its value proposition, returns on management, and enterprise downside risks.
The stock price’s present value suggests that its shares remain underbought or oversold by the market, although volatility and short interest are above average.
Quality Value Investing (QVI) maintains its Expanded Stock Picks coverage rating of Penske Automotive Group in this updated research report.
Access your Quality Value Investing (QVI) Glossary of Investing Terms and Metric Targets when referencing this research report. Unless noted, all data presented is sourced from Seeking Alpha Premium as of the market close on January 2, 2024, and intended for illustration only.
The 43 holdings of the QVI Real-Time Stock Picks have collectively achieved alpha for 15 years by focusing research and analysis on a company’s current wealth and its share price’s present value. In other words, just the facts without unreliable predictive analysis typical of the buyside or the business modeling overkill of sell-side Wall Street analysts.
In this updated QVI Research Report, we’ll look at the Expanded Stock Picks Real-Time consumer discretionary sector holding Penske Automotive Group, Inc. to see if it continues to meet Quality Value Investing’s active inclusion criteria based on our checklist analysis of the business’s current wealth and its stock’s present value.
Penske: Company Current Wealth
To uncover the current wealth of the company, QVI defines the value proposition, measures select returns on management, and assesses enterprise downside risks.
Value Proposition
QVI Research Report’s value proposition section provides a brief synopsis of the company’s business model, major-exchange listing, stock symbol, market capitalization, and dividend-paying status. In addition, it defines the competitive advantages of a company’s products or services to its customers compared to the industry, including the stock’s historical performance vs. the sector and market.
Penske Automotive Group PAG 0.00%↑ is a dividend-paying mid-cap stock in the consumer discretionary sector’s automotive retail industry. PAG was added to the QVI Extended Stock Picks on February 13, 2019, at a split and dividend-adjusted $39.09 a share.
Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships in the United States and internationally. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments.
Penske operates dealerships under franchise agreements with various automotive manufacturers and distributors. The company is also involved in the sale of new and used motor vehicles, maintenance and repair services, sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, collision repair services, and wholesale of parts.
In addition, it operates a heavy and medium duty truck dealership, which offers Freightliner and Western Star branded trucks, as well as offers a range of used trucks. Further, it imports and distributes Western Star heavy-duty trucks, MAN heavy and medium-duty trucks and buses, and Dennis Eagle refuse collection vehicles with associated parts. Additionally, the company distributes diesel and gas engines, and power systems.
Penske Automotive Group was incorporated in 1990 and is headquartered in Bloomfield Hills, Michigan, USA.
QVI’s value proposition elevator pitch for Penske Automotive Group:
Penske Automotive Group is a favorite among customers and employees if it is underfollowed by investors. With its highly competitive value proposition, Roger Penske’s fabulously run, enduring enterprise stands out in the crowded automotive marketplace.
Due Diligence Resources
For a more in-depth analysis of the all-important value proposition, visit Penske’s investor relations webpage and its most recent Form 10-K Annual Report submitted to the US Securities and Exchange Commission or SEC.
Performance vs. Sector and Market
The chart below illustrates Penske’s performance against the Consumer Discretionary Select Sector SPDR® Fund ETF (NYSE: XLY) and the SPDR® S&P 500 ETF Trust (NYSE: SPY) since being added to the QVI Extended Stock Picks on February 13, 2019. PAG has dramatically outperformed its sector and broader market since being covered by QVI about five years ago.
QVI’s value proposition rating for Penske Automotive Group: Bullish.
Next, we’ll look at the company’s returns on management and enterprise downsize risks, the share price’s present value, and the investment thesis, each exclusive to Quality Value Investing’s premium (paying) subscribers.