Penske Automotive Group Inc. (PAG) Analyzing Financial Health

Publicly-traded company Penske Automotive Group Inc. (NYSE:PAG) had a closing price of $52.15 yesterday. Meanwhile, the average 12-month price target from Wall Street analysts is currently $59.00, this means that the stock is underpriced by 11.61%. In the past 52 weeks the company’s stock price has moved within the range of $38.49 to $51.00.

This particular stock’s 5-day moving average is 49.90, its 20-day moving average is 47.14 and its 100-day moving average is 45.72. Penske Automotive Group Inc. (PAG) currently has 77.91M shares outstanding, which means that its market capitalization is $4.06B.

The Details: Penske Automotive Group Inc. (PAG) Financial Health

There is more than one indicator we can consider while evaluating a potential stock’s financial performance. For example, we can find out a public company’s profit margin, which lets us know how much of a company’s net sales revenue was retained as earnings – which we calculate by dividing net income by total sales revenue. PAG currently has a profit margin of 1.90%.

It’s also useful to check out a company’s operating margin, which lets us know how much profit is retained after taking operating costs and depreciation into consideration. Penske Automotive Group Inc. (PAG) has an operating margin of 2.80%.

We can also look at Return on Assets, which is a percentage that tells us how good a public company is at using its current assets to generate a profit. Higher percentages mean that the company is better at using its assets. At the moment, Penske Automotive Group Inc. Return on Assets is 3.40%.

What Does Wall Street Say about Company?

When selecting stocks to purchase, many investors want to know what Wall Street analysts are thinking before they pull the trigger. They often look for the average analyst rating. At the moment, the average analyst rating for PAG is Overweight. Out of 11 total analysts who were surveyed, 0 rated it a sell, 1 rated it a underweight, 0 rated it an overweight, 2 rated it hold, and 8 rated it a Buy.

Understanding Profitability at Penske Automotive Group Inc. (PAG)

A good method of evaluating a public company’s profitability is by taking a look at its Earnings per Share (EPS) performance. In the most recent financial results released by Penske Automotive Group Inc., for the quarter ending on 12/2019, the company posted EPS of 1.19. The average estimate of Wall Street analysts had projected 1.25.

Wall Street analysts, on average, are forecasting the company’s EPS to be 1.21, compared to 1.11 reported in the same quarter last year. When it comes to net revenue, the average estimate from a total of 8 analysts is 5.74B – compared to 5.44B posted in the year-ago period.