Penske Automotive Intrinsic Stock Value – PENSKE AUTOMOTIVE Reports 11.4% Increase in Net Income for Fourth Quarter of FY2022.

Earnings Overview

For the fourth quarter of FY2022, PENSKE AUTOMOTIVE ($NYSE:PAG) reported a net income of USD 7011.8 million, an increase of 11.4% from the same quarter of the previous year. Total revenue, however, decreased 4.3%, coming in at USD 298.0 million.

Transcripts Simplified

Penske Automotive reported record revenue and earnings per share in the fourth quarter of 2022, driven by its diversified business model. Revenue increased 11% to $7 billion, while earnings per share rose 6% to $4.21. Excluding foreign exchange effects, revenue increased 17% to $7.4 billion and earnings per share increased 8% to $4.30. The company also repurchased approximately 2.5 million shares of stock for $284 million in the quarter. Retail automotive operations saw new units increase 11% on a same-store basis, while used units declined 4%.

Revenue increased 4%, but excluding foreign exchange effects, rose 10%. Variable gross profit, excluding FX, only declined by $33 on a sequential basis. Service and parts revenue increased 6%, and CarShop unit sales increased 12%. Total revenue for the Premier Truck Dealership business was up 40% with new commercial truck demand remaining strong.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Penske Automotive. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Penske Automotive. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Penske Automotive. More…

Key Ratios Snapshot

Some of the financial key ratios for Penske Automotive are shown below. More…

Market Price

This increase in income was a result of increased sales of vehicles, parts, and services across all three of their business segments: Penske Automotive Group, Penske Truck Leasing, and Penske Logistics. The report showed a significant improvement in earnings per share when compared to the same quarter a year earlier. Penske’s strong results are largely attributed to the strategic investments and acquisitions it has made in recent years, which have allowed them to expand their global footprint and increase their market share.

Additionally, Penske’s focus on improving the customer experience has been a key factor in their growth. Their level of customer service and loyalty programs have enabled them to build an impressive customer base that continues to grow. Looking ahead to the next quarter, Penske Automotive Group appears to be well-positioned for further growth, as it continues to invest in its core business segments and explore new opportunities for growth. With its strong financial performance and commitment to providing customers with the highest level of service, Penske Automotive Group looks set to remain one of the most reliable automotive companies in the industry. Live Quote…

Analysis – Penske Automotive Intrinsic Stock Value

At GoodWhale, we conducted an analysis of PENSKE AUTOMOTIVE‘s wellbeing. After looking at the company’s fundamentals, our proprietary Valuation Line calculated the intrinsic value of PENSKE AUTOMOTIVE’s stock to be around $106.3. Currently, PENSKE AUTOMOTIVE shares are trading at $136.4, meaning the stock is currently overvalued by 28.3%. This presents a great opportunity for investors to capitalize on the current market conditions and purchase PENSKE AUTOMOTIVE stock at a discount. More…

Peers

Penske Automotive Group Inc is an American automotive retailer. It is the second largest publicly traded company in the United States behind AutoNation and is headquartered in Bloomfield Hills, Michigan. The company also owns and operates several automotive websites and a truck leasing and logistics company. Penske Automotive Group operates over 300 retail automotive franchises, representing over 40 different brands. The company also operates in the United Kingdom, Australia, and Mexico. Sonic Automotive Inc is an American automotive retailer.Headquartered in Charlotte, North Carolina, the company operates over 100 dealerships in 15 states. Asbury Automotive Group Inc is an American automotive retailer. As of 2016, Asbury Automotive Group operated 86 dealerships, made up of 77 franchises across the United States. Group 1 Automotive Inc is an American automotive retailer with its headquarters in Houston, Texas. As of 2016, Group 1 Automotive operated 175 dealerships and 153 franchises in the United States and United Kingdom.

– Sonic Automotive Inc ($NYSE:SAH)

Sonic Automotive Inc is a company that operates in the automotive retailing industry. As of 2022, it had a market capitalization of 1.77 billion dollars and a return on equity of 32.11%. Sonic Automotive Inc is a company that operates in the automotive retailing industry. It is based in Charlotte, North Carolina, and was founded in 1997. The company operates dealerships in the United States, and its brands include Audi, BMW, Cadillac, Chevrolet, Jaguar, Land Rover, Lexus, Mercedes-Benz, Porsche, and Volvo.

– Asbury Automotive Group Inc ($NYSE:ABG)

Asbury Automotive Group Inc is one of the largest automotive retailers in the United States. The company operates over 100 dealerships across the country, selling and servicing a variety of makes and models of cars and light trucks. Asbury’s return on equity is impressive, coming in at over 31%. This means that the company is generating a significant amount of profit relative to the amount of equity that shareholders have invested. Asbury’s market cap is just over $3.7 billion, making it a large company but still small enough to be considered nimble in the ever-changing automotive industry.

– Group 1 Automotive Inc ($NYSE:GPI)

Group 1 Automotive Inc is a publicly traded automotive retailer that offers new and used vehicles, parts and services, and financing options through its dealerships. As of 2022, the company had a market capitalization of 2.6 billion dollars and a return on equity of 33.54%. Group 1 Automotive Inc operates in the United States, the United Kingdom, Brazil, and Turkey. The company was founded in 1995 and is headquartered in Houston, Texas.

Summary

PENSKE AUTOMOTIVE has shown positive results in its financial performance for the fourth quarter of FY2022. Net income increased by 11.4% year-over-year to USD 7011.8 million and total revenue decreased by 4.3% to USD 298.0 million compared to the same period of the previous year. Overall, this suggests that investing in the company may be beneficial for investors, with potential to generate returns in the long run.