Penske Automotive Group, Inc. (PAG)

Price$194.22Cached quoteAs of 2026-10-08 09:15 UTC

AI: Fair-priced

Price checkThe shares look roughly fair, but today’s price assumes a better deal or stronger cash earnings.

Using the supplied SEC history, earnings for the last four reported quarters are about $13.76 per share, putting the stock at roughly 15.8 times earnings. Free cash flow—cash left after running and investing in the business—is about $590 million over the same span, only about a 4.1% yield on the equity value. The market also sits roughly 4% above the controlling owners’ non-binding cash proposal. That combination looks fair rather than cheap: investors are already paying for either a higher bid or better cash generation. Google+1

Big pictureRevenue is holding up, but profits and cash remain below their recent peak.

The business remains large and steady, but profitability has normalized from unusually strong post-pandemic years. Revenue was $31.8 billion in 2025, almost unchanged from 2024, while net income fell to $935 million from $1.38 billion in 2022. In the first half of 2026, revenue rose about 2.4% from a year earlier, yet net income fell about 5.6%. Free cash flow dropped roughly 18% to $284 million. Retail service and parts are helping, but commercial-truck new-unit revenue fell about 16% in the first half. SEC+1

Business strengthRecurring service work, acquisitions, and buybacks add resilience, while rising debt limits the cushion.

Penske has real defenses: same-store retail automotive service-and-parts gross profit rose 4.5% in the first half, and recent Toyota and Lexus acquisitions are expected to add about $2 billion of annualized revenue. Capital allocation has also reduced shares outstanding about 18% since 2020, while dividends have risen for 23 straight quarters. The trade-off is leverage. Net debt reached about $2.43 billion at June 2026, roughly 1.7 times company-defined leverage, although management reported about $1.4 billion of liquidity. Buybacks have recently slowed as acquisition spending increased. SEC+1

What could change the storyA higher buyout offer or stronger truck demand could lift value; failed deal talks could expose downside.

The strongest upside is a higher take-private price or a standalone earnings rebound as acquired dealerships mature and truck demand improves. The strongest downside is that the non-binding proposal fails while free cash flow stays near its recent roughly $600 million annual pace and acquisition debt remains elevated. A sustained move back above about $800 million of annual free cash flow, with net debt falling below $2 billion, would make today’s valuation easier to defend. Continued weak commercial-truck profitability or further debt-funded deals would weaken the case. SEC+1

AI: News

Take-private proposalControlling shareholders proposed buying the rest of Penske Automotive, sharply resetting the market’s valuation anchor.

On July 22, Penske Corporation and Mitsui proposed acquiring the shares they do not already own for $210 each in cash. Together with affiliates, they already beneficially owned 72.6% of the company. Reuters reported the stock rose more than 11% in morning trading after the announcement, making this the clearest recent valuation-resetting event. The proposal is preliminary and non-binding, so the current market premium to the offer reflects expectations, not a guaranteed higher payout. Reuters+1

Second-quarter resultsSecond-quarter sales beat expectations, but reported profit still slipped from a year earlier.

On July 29, Penske reported second-quarter revenue of $8.5 billion, up 6% year over year, while net income slipped to $260.4 million from $266.6 million. Adjusted earnings were $3.62 per share and beat published consensus estimates. New and used automotive deliveries increased 5%, while service and parts remained supportive. The shares gained about 1.6% that session, although that move cannot be cleanly separated from ongoing takeover speculation. Penske Automotive Group+1

Independent review advancesIndependent directors hired advisers, showing the buyout review is active but still uncertain.

On August 10, the independent special committee hired Moelis as financial adviser and Paul Weiss as legal counsel to evaluate the take-private proposal. The SEC filing emphasized that there is no assurance an agreement will be reached or completed. The step matters because it confirms an active independent review, but it does not improve the proposal by itself. Market reaction was mild, reinforcing that investors still appear focused on whether the buyers raise their offer or negotiations end. SEC+1

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$31.81B	$31.86B	$30.92B	$27.81B	$25.55B	$20.44B	$23.18B	$22.79B	$21.39B	$20.12B	$19.28B	$17.23B	$14.48B	$12.90B	$11.04B	$9.94B	$9.01B	$11.64B
Gross profit	$5.22B	$5.22B	$5.15B	$4.84B	$4.44B	$3.18B	$3.46B	$3.41B	$3.22B	$2.97B	$2.87B	$2.58B	$2.20B	$1.98B	$1.75B	$1.59B	$1.51B	$1.79B
Gross margin	16.40%	16.37%	16.65%	17.40%	17.38%	15.58%	14.91%	14.99%	15.07%	14.75%	14.87%	14.97%	15.20%	15.31%	15.87%	15.94%	16.72%	15.38%
Operating expenses	$3.94B	$3.85B	$3.74B	$3.35B	$3.08B	$2.48B	$2.80B	$2.75B	$2.61B	$2.39B	$2.30B	$2.08B	$1.77B	$1.61B	$1.46B	$1.33B	$1.31B	$2.19B
Operating income	$1.28B	$1.37B	$1.41B	$1.49B	$1.36B	$704.5M	$652.7M	$664.9M	$611.4M	$574.9M	$566.5M	$500.4M	$429.8M	$365.1M	$295.2M	$253.4M	$201.2M	−$401.0M
Operating margin	4.03%	4.30%	4.56%	5.35%	5.31%	3.45%	2.82%	2.92%	2.86%	2.86%	2.94%	2.90%	2.97%	2.83%	2.67%	2.55%	2.23%	−3.45%
EBITDA	$1.45B	$1.53B	$1.55B	$1.62B	$1.48B	$820.0M	$762.3M	$768.6M	$706.5M	$664.6M	$644.5M	$570.6M	$489.4M	$417.3M	$341.6M	$298.0M	—	—
EBITDA margin	4.57%	4.81%	5.02%	5.81%	5.78%	4.01%	3.29%	3.37%	3.30%	3.30%	3.34%	3.31%	3.38%	3.23%	3.09%	3.00%	—	—
Net income	$935.4M	$968.9M	$1.11B	$1.38B	$1.19B	$543.6M	$435.8M	$471.0M	$613.3M	$342.9M	$326.1M	$286.7M	$244.2M	$185.5M	$176.9M	$108.3M	$76.5M	−$420.0M
Net profit margin	2.94%	3.04%	3.59%	4.96%	4.65%	2.66%	1.88%	2.07%	2.87%	1.70%	1.69%	1.66%	1.69%	1.44%	1.60%	1.09%	0.85%	−3.61%
Basic EPSper basic share	$14.13	$14.49	$16.31	$18.55	$14.89	$6.74	$5.28	$5.53	$7.14	$3.99	$3.63	$3.17	$2.71	$2.05	$1.94	$1.18	$0.84	-$4.47
Diluted EPSper diluted share	$14.13	$14.49	$16.31	$18.55	$14.89	$6.74	$5.28	$5.53	$7.14	$3.99	$3.63	$3.17	$2.70	$2.05	$1.94	$1.18	$0.83	-$4.47

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈52.29%of listed shares

PENSKE ROGER S34.33M shares · Jun 1, 2026

View holders

Top 20 reported holders of PAG
Holder	% owned
PENSKE ROGER S	≈52.29%34.33M shares
BlackRock, Inc.	3.55%2.33M shares
DIMENSIONAL FUND ADVISORS LP	2.51%1.65M shares
VICTORY CAPITAL MANAGEMENT INC	2.50%1.64M shares
BANK OF MONTREAL /CAN/	1.26%825.39K shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.21%796.55K shares
VANGUARD CAPITAL MANAGEMENT LLC	1.16%764.3K shares
LSV ASSET MANAGEMENT	1.03%678.53K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	0.96%631.65K shares
STATE STREET CORP	0.95%625.21K shares
MORGAN STANLEY	0.89%584.75K shares
AQR CAPITAL MANAGEMENT LLC	0.69%456.04K shares
BANK OF AMERICA CORP /DE/	0.67%441.83K shares
GAMCO INVESTORS, INC. ET AL	0.60%394.39K shares
GOLDMAN SACHS GROUP INC	0.59%385.75K shares
Bank of New York Mellon Corp	0.58%379K shares
GEODE CAPITAL MANAGEMENT, LLC	0.54%355.16K shares
Bahl & Gaynor LLC	0.40%264.8K shares
UBS Group AG	0.37%245.49K shares
Invesco Ltd.	0.37%241.29K shares

Percentages use 65.66M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)16$22.58M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 2, 2026Form 4	Hulgrave MichelleEVP & CFO	SellCommon Stock	1.5K	$171.80	$257.7K	17.6K
May 18, 2026Form 4	SMITH GREG CDirector	SellCommon Stock	1.5K	$160.02	$238.1K	0
Nov 24, 2025Form 4	Hulgrave MichelleEVP & CFO	SellCommon Stock	2.1K	$160.17	$336.4K	16.8K
Aug 29, 2025Form 4	Pierce Sandra E.Director	SellCommon Stock · indirect	1.6K	$187.05	$300.0K	1.5K
Aug 19, 2025Form 4	Hulgrave MichelleEVP & CFO	SellCommon Stock	1.1K	$182.55	$200.8K	18.9K

Review ownership filings at SEC.gov ↗

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Penske Automotive Group, Inc. (PAG)

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