Penske Automotive Intrinsic Value – Zurcher Kantonalbank Zurich Cantonalbank Reduces Holdings in Penske Automotive Group,
May 7, 2023
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The recent news of Zurcher Kantonalbank Zurich Cantonalbank reducing its holdings in Penske Automotive ($NYSE:PAG) Group, Inc. has been making waves in the stock market. Penske Automotive Group, Inc. (NYSE: PAG) is a publicly traded automotive retail and services company that operates in the United States, the United Kingdom, and other countries around the world. The company is engaged in automotive retailing, vehicle rental, and other related activities.
The company also provides other services related to automotive, such as maintenance, collision repair and car buying assistance. This news has caused a decline in the stock price of Penske Automotive Group, Inc. and has made investors cautious about the company’s future performance.
Share Price
PAG stock opened at $141.8 and closed at $141.5, a 0.9% dip from the previous closing price of 142.8. The move by Zurcher Kantonalbank Zurich Cantonalbank is a sign that investors may be losing confidence in the company. It is unclear why the bank decided to reduce its stake, but it could be a sign that they are looking to cut down on their risk exposure in the automotive sector. Live Quote…
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 |
| 28.18k | 1.31k | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Penske Automotive. More…
| Operations | Investing | Financing |
| 1.46k | -641.7 | -798 |
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 |
| 14.4k | 10.04k | 60.06 |
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 |
| 7.6% | 34.5% | 6.8% |
| FCF Margin | ROE | ROA |
| 4.2% | 28.9% | 8.3% |
Analysis – Penske Automotive Intrinsic Value
GoodWhale’s analysis of PENSKE AUTOMOTIVE‘s fundamentals reveals that the intrinsic value of its share is around $112.2, which is calculated using our proprietary Valuation Line. Currently, the stock is trading at $141.5, which implies it is overvalued by 26.1%. This means that investors should be wary of investing in the stock at its current price level. More…
Peers
Penske Automotive Group Inc is an American automotive retailer. It is the second largest publicly traded company in the United States behind AutoNation and is headquartered in Bloomfield Hills, Michigan. The company also owns and operates several automotive websites and a truck leasing and logistics company. Penske Automotive Group operates over 300 retail automotive franchises, representing over 40 different brands. The company also operates in the United Kingdom, Australia, and Mexico. Sonic Automotive Inc is an American automotive retailer.Headquartered in Charlotte, North Carolina, the company operates over 100 dealerships in 15 states. Asbury Automotive Group Inc is an American automotive retailer. As of 2016, Asbury Automotive Group operated 86 dealerships, made up of 77 franchises across the United States. Group 1 Automotive Inc is an American automotive retailer with its headquarters in Houston, Texas. As of 2016, Group 1 Automotive operated 175 dealerships and 153 franchises in the United States and United Kingdom.
– Sonic Automotive Inc ($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 Group, Inc. has seen its holdings cut by Zurich Cantonalbank, a leading Swiss financial services provider. Analysts have suggested that the company’s recent financial performance, as well as its elevated debt burden, may have caused the investment firm to sell off its holdings. Despite the recent news, analysts remain optimistic about the future prospects of Penske Auto, citing their strong brand recognition, extensive dealership network, and long-term growth potential. Investors considering investing in Penske Auto should carefully consider the company’s financial position and analyze the risks associated with investing in the stock.
