Penske Automotive trades at a forward price-to-earnings ratio of 12.5x with a Piotroski F-Score of only 2 out of 9 and below-floor quality score of 2.5, indicating weak fundamental health, while RSI at 77 and the stock at a 52-week high suggest the technical setup is overbought at a point of limited further analyst-supported upside.
Thesis pillars
- Critically Weak Piotroski Quality→Stable
- Overbought Rsi Late Cycle Risk→Stable
- Declining Revenue And Earnings Stagnation→Stable
- +1 more pillar — see the Why tab for full reasoning
Penske Automotive Group, Inc. (PAG) Stock Analysis
Range Bound setup
Consumer Cyclical · Auto & Truck Dealerships
Sell if holding. Engine safety override at $180.61: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 14%; Elevated put/call ratio: 5.33; Below-average business quality.
Penske Automotive Group retails vehicles through 365 franchised dealerships and 45 commercial truck locations across seven countries, generating $31.8 billion in 2025 revenue. Revenue spans new vehicles (40.4%), used vehicles (28.1%), service/parts (10.6%), and retail commercial... Read more
Sell if holding. Engine safety override at $180.61: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 14%; Elevated put/call ratio: 5.33; Below-average business quality. Chart setup: RSI 49 mid-range, Bollinger mid-band. Score 4.1/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 24d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
About Penske Automotive Group, Inc.
About Penske Automotive Group, Inc.
Penske Automotive Group operated 365 retail automotive franchised dealerships across seven countries at December 31, 2025, generating $31.8 billion in total revenue with 71% of retail automotive dealership revenue from premium brands such as BMW, Mercedes-Benz, Porsche, and Audi. The 148 U.S. dealerships and 217 international locations employed over 27,700 people, with 61% of retail automotive dealership revenues generated in the U.S. and Puerto Rico in 2025.
Penske Automotive generated $27.5 billion from retail automotive dealerships in 2025, with service and parts (37.8% of retail automotive gross profit) and finance and insurance (15.7%) providing higher-margin counterweights to the lower-margin new vehicle (22.3% of gross profit) and used vehicle (9.0%) lines. Commercial truck operations through Premier Truck Group — 45 locations primarily selling Freightliner and Western Star (both Daimler brands) — contributed $3.4 billion in revenue with approximately 68% of gross profit from service and parts. The Penske Australia segment distributes Western Star, MAN, and Dennis Eagle commercial vehicles plus diesel and gas engines across Australia, New Zealand, and the Pacific, adding $922.6 million. Earnings from the 28.9% stake in Penske Transportation Solutions contributed $192.8 million in equity earnings in 2025. Four manufacturer groups — BMW/MINI, Audi/Volkswagen/Porsche/Bentley, Toyota/Lexus, and Mercedes-Benz/Sprinter/smart — accounted for 73% of total automotive dealership revenues.
Show full overview
The 10-K explicitly discloses that four OEM groups accounted for 73% of total automotive dealership revenues in 2025: BMW/MINI at 25%, Audi/Volkswagen/Porsche/Bentley at 22%, Toyota/Lexus at 18%, and Mercedes-Benz/Sprinter/smart at 8%. Franchise agreements grant these manufacturers broad discretion to terminate or decline renewal for reasons outside the dealer's control, including third-party accumulation of Penske's stock. Without those agreements, Penske Automotive could not sell new vehicles or perform manufacturer-authorized warranty service — a structural dependency embedded in the franchise model.
See also: Consumer Cyclical · Auto & Truck Dealerships
From Penske Automotive Group, Inc.'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-07-06Recent Developments — Penske Automotive Group, Inc.
Latest news
- NEWS UBS Initiates Coverage On Penske Automotive Group with Neutral Rating, Announces Price Target of $167 — benzinga May 27, 2026
- NEWS Penske Automotive Raises Quarterly Dividend From $1.40 To $1.42/Share — benzinga May 13, 2026 positive
- NEWS JP Morgan Maintains Neutral on Penske Automotive Group, Raises Price Target to $170 — benzinga May 7, 2026 positive
- NEWS Citigroup Maintains Buy on Penske Automotive Group, Raises Price Target to $199 — benzinga May 6, 2026 positive
- NEWS Stephens & Co. Maintains Equal-Weight on Penske Automotive Group, Raises Price Target to $160 — benzinga May 4, 2026 positive
Generated 2026-07-07T11:21:38Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
Revenue shrinking — -1.1% YoY. Growth thesis broken unless recovery story develops.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $180.61: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 14%; Elevated put/call ratio: 5.33; Below-average business quality. Chart setup: RSI 49 mid-range, Bollinger mid-band. Prior stop was $170.84. Score 4.1/10, moderate confidence.
Take-profit target: $182.89 (+1.3% upside). Prior stop was $170.84. Stop-loss: $170.84.
Target reached (-11.0% upside); Quality below floor (2.5 < 4.0).
Penske Automotive Group, Inc. trades at a P/E of 13.0 (forward 12.5). TrendMatrix value score: 6.1/10. Verdict: Sell.
16 analysts cover PAG with a consensus score of 3.8/5. Average price target: $185.
What does Penske Automotive Group, Inc. do?Penske Automotive Group retails vehicles through 365 franchised dealerships and 45 commercial truck locations across...
Penske Automotive Group retails vehicles through 365 franchised dealerships and 45 commercial truck locations across seven countries, generating $31.8 billion in 2025 revenue. Revenue spans new vehicles (40.4%), used vehicles (28.1%), service/parts (10.6%), and retail commercial trucks (10.7%); the company also holds 28.9% of Penske Transportation Solutions.