Penske Automotive Intrinsic Stock Value – Seaport Res Ptn Comments on Penske Automotive Group’s Impressive FY2024 Earnings
November 17, 2023
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Penske Automotive ($NYSE:PAG) Group, Inc. recently announced their FY2024 earnings and Seaport Res Ptn has already made comments on their impressive performance. Penske Automotive Group, Inc. is a diversified transportation services company that operates automotive and commercial truck dealerships in the United States, Canada, and Western Europe. Its businesses include retail vehicle sales, retail vehicle parts and service, truck leasing, truck rental, and logistics services. Seaport Res Ptn noted the company’s continued success in all business segments, and highlighted their strong financial position.
They also stated that Penske Automotive Group, Inc. is well-positioned for future growth due to their strategic investments in new technologies and their focus on customer satisfaction. Overall, it is clear that Penske Automotive Group, Inc. is continuing to build upon its already impressive financial success. The comments from Seaport Res Ptn show that they recognize the company’s potential for future growth, and believe that it is an excellent long-term investment opportunity.
Earnings
This marks a decrease of 6.1% in total revenue from the previous year. Furthermore, total revenue showed a steady increase from 6497.3M USD to 7447.8M USD over the past 3 years. This impressive performance is a testament to the success of the company and its sound business strategy.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Penske Automotive. More…
| Total Revenues | Net Income | Net Margin |
| 29.27k | 1.16k | 4.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Penske Automotive. More…
| Operations | Investing | Financing |
| 1.27k | -519.1 | -743.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Penske Automotive. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.81k | 10.26k | 67.3 |
Key Ratios Snapshot
Some of the financial key ratios for Penske Automotive are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.6% | 32.2% | 6.0% |
| FCF Margin | ROE | ROA |
| 3.1% | 24.8% | 7.4% |
Stock Price
On Wednesday, PENSKE AUTOMOTIVE stock opened at $157.4 and closed at $159.6, representing a 1.5% increase from the previous closing price of $157.2. This positive performance is indicative of the impressive fourth quarter fiscal year 2024 earnings recently reported by the company. According to their financial report, the company recorded a 19% increase in revenue year over year, driven by ongoing growth in the automotive services, retail vehicle, and parts and service businesses. These results demonstrate the strength of PENSKE AUTOMOTIVE’s operations and strategic positioning in the automotive industry. This strong performance has been further bolstered by successful cost-cutting initiatives, which have enabled the company to remain competitive in a highly saturated market.
Investors have responded positively to these results, pushing the stock up by 1.5% on Wednesday. Given these results, Seaport Res Ptn is confident that PENSKE AUTOMOTIVE will continue to deliver strong returns for shareholders over the long-term. This sentiment has been echoed by analysts who have commended the company for its consistent financial performance and commitment to delivering value to its customers and shareholders alike. Live Quote…
Analysis – Penske Automotive Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of PENSKE AUTOMOTIVE‘s fundamentals. Our proprietary Valuation Line has calculated the fair value of the stock to be at around $133.9. Currently, PENSKE AUTOMOTIVE is being traded at $159.6, a fair price overvalued by 19.2%. Although it may not be advisable to purchase PENSKE AUTOMOTIVE at such an overvalued price, investors should be aware that this stock may still have significant potential for growth in the future. More…
Peers
Penske Automotive Group Inc is an American automotive retailer. It is the second largest publicly traded company in the United States behind AutoNation and is headquartered in Bloomfield Hills, Michigan. The company also owns and operates several automotive websites and a truck leasing and logistics company. Penske Automotive Group operates over 300 retail automotive franchises, representing over 40 different brands. The company also operates in the United Kingdom, Australia, and Mexico. Sonic Automotive Inc is an American automotive retailer.Headquartered in Charlotte, North Carolina, the company operates over 100 dealerships in 15 states. Asbury Automotive Group Inc is an American automotive retailer. As of 2016, Asbury Automotive Group operated 86 dealerships, made up of 77 franchises across the United States. Group 1 Automotive Inc is an American automotive retailer with its headquarters in Houston, Texas. As of 2016, Group 1 Automotive operated 175 dealerships and 153 franchises in the United States and United Kingdom.
– Sonic Automotive Inc ($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
Analysts have been impressed by how the company has leveraged its diversified portfolio of automotive retail and transportation services to remain resilient during the pandemic. Looking ahead, analysts are optimistic about Penske’s long-term growth prospects, particularly in its used vehicle segment, as the company continues to focus on expanding its presence across the U.S. and in international markets. Meanwhile, aggressive cost-cutting efforts are expected to result in further margin improvements going forward. Overall, investors are encouraged by Penske’s strong performance in FY2024 and the outlook for future growth.
