CluenexPenske Automotive Group PAG
Penske Automotive Group scores weak on business quality (3.6 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Penske Automotive Group does
Penske Automotive Group sells new and used vehicles, commercial trucks, and provides maintenance services through a vast dealership network. Customers pay for vehicle purchases, parts, and servicing. The company focuses on expanding its retail network and commercial truck operations while managing its substantial debt load of $6.3 billion.
- What it does best
Penske excels at extracting steady returns from a massive revenue base, generating $32.9 billion in revenue with a 16.5% ROE. This operational efficiency stems from its diversified footprint across consumer and commercial vehicle retail.
- The main risk
Net debt stands at $6.2 billion with an interest coverage ratio of 4.6x, leaving the company vulnerable to rising borrowing costs or any downturn in vehicle sales that could strain cash flows.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin sits at 3.8% and FCF margin is 1.9%, reflecting compressed profitability as scaling does not yield wide margins.
Operating in the bottom quartile of its sector with a 3.8% operating margin, the company lacks a strong moat, making it vulnerable to local competition.
Revenue growth is flat at -0.2%, dropping from prior years as the top-line expansion engine cools off compared to its historical performance.
Total debt sits at $6.3 billion against $65 million in cash, supported by an interest coverage ratio of 4.6x and $610 million in free cash flow, pointing to a heavy debt load.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on PAG
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Penske Automotive Group scores weak on the Cluenex quality check (3.6 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 28, 2026.
See PAG today
- Today's verdict on PAG, and why
- Fair value with cautious, base and optimistic cases
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- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Penske Automotive Group (PAG)”, https://cluenex.com/stocks/pag/, data as of Oct 10, 2026.