At a glance
Penske Automotive Group Inc is worth $13.92B, about 15 times its fiscal 2025 earnings. Revenue fell 0.2% to $31.81B in fiscal 2025, with 2.9% kept as profit. It pays a 2.66% dividend yield, raised every year for at least 5 years, and returned $2.83B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +34.3% over the past year with dividends reinvested and +17.7% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 59.6% in the 2020 crash (S&P 500: 33.7%) and 22.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 7 months and 2 months after the lows.
The business in plain English
Penske Automotive Group mainly sells and services cars. It offers more than 40 brands, and premium names such as BMW, Audi, Mercedes-Benz, Porsche and Lexus produced 71% of its franchised dealership revenue in 2025. As of December 31, 2025, it ran 365 franchised car dealerships: 148 in the U.S. and 217 abroad, mostly in the U.K. Car dealerships brought in 86.4% of total 2025 revenue of $31.8 billion. The U.S. supplied 61.6% of revenue and the U.K. 26.2%.
Dealerships also earn higher-margin revenue from repairs, parts, and arranging outside loans, insurance and extended warranties. Service and parts usually swing less with the economy than car sales do. They produce the largest share of the car business's gross profit, which is sales minus the direct cost of goods sold. Some U.K. and European dealerships act as agents. They earn only a fee from the manufacturer and don't hold the car in inventory.
Commercial trucks supplied 10.7% of 2025 revenue through Premier Truck Group. It sells mostly Freightliner and Western Star trucks at 45 locations in 10 U.S. states, Ontario and Manitoba. Another 2.9% came mainly from distributing trucks, buses and engines in Australia and New Zealand. The company also owns 28.9% of Penske Transportation Solutions, a truck leasing and logistics firm. It books its share of that firm's profit, not its revenue.
Price history
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PAG +34.3% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Retail automotive dealership | $27.47B | 86.4% |
| Retail commercial truck dealership | $3.41B | 10.7% |
| Commercial vehicle distribution and other | $922.6M | 2.9% |
By geography
| U.S. | $19.58B | 61.6% |
| U.K. | $8.33B | 26.2% |
| Other International | $3.90B | 12.2% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $8.42B, up 4.5% from a year earlier, and net income was $220.8M (-1.8%).
- For fiscal 2025, revenue was $31.81B (-0.2% year over year) with a 2.9% net margin.
Financial health check
| Operating margin | 4% weak |
|---|---|
| Free cash flow margin | 2% watch |
| Return on equity (FY2025) | 16.8% good |
| Return on assets (FY2025) | 5.3% watch |
| Net cash (cash minus debt) | $-2.30B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $20.44B | $543.6M | $1.02B |
| FY2021 | $25.55B | $1.19B | $1.04B |
| FY2022 | $27.81B | $1.38B | $1.18B |
| FY2023 | $30.92B | $1.11B | $759.2M |
| FY2024 | $31.86B | $968.9M | $852.8M |
| FY2025 | $31.81B | $935.4M | $650.5M |
Valuation snapshot
| Market value | $13.92B |
|---|---|
| P/E ratio | 15 |
| Dividend yield | 2.66% |
Rank among 1514 US companies
Market value at each year end
Penske Automotive Group’s market value went from $4.42B at the end of 2016 to $13.92B on Oct 28, 2026, about 3.2 times as much; since the end of 2025 it is up 33%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $13.92B | +33.5% |
| 2025 | $10.42B | +2.4% |
| 2024 | $10.18B | -5.7% |
| 2023 | $10.79B | +31.6% |
| 2022 | $8.19B | -2.4% |
| 2021 | $8.39B | +75.9% |
| 2020 | $4.77B | +17.2% |
| 2019 | $4.07B | +19.0% |
| 2018 | $3.42B | -16.6% |
| 2017 | $4.10B | -7.1% |
| 2016 | $4.42B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PAG price data to Oct 28, 2026 | +37.1% | +34.3% | +16.8% | +17.7% | +20.0% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +37.1% |
| 2025 | +7.1% |
| 2024 | -2.5% |
| 2023 | +42.3% |
| 2022 | +9.2% |
| 2021 | +84.4% |
| 2020 | +20.1% |
| 2019 | +28.9% |
| 2018 | -13.2% |
| 2017 | -5.1% |
| 2016 | +26.2% |
| 2015 | -12.1% |
| 2014 | +5.9% |
| 2013 | +59.5% |
| 2012 | +59.1% |
| 2011 | +11.9% |
| 2010 | +14.8% |
| 2009 | +97.7% |
| 2008 | -54.8% |
| 2007 | -24.9% |
| 2006 | +25.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 75.8% over that stretch · deepest drop along the way 77.6%, back to its old high 25.6 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 59.1% over that stretch · deepest drop along the way 59.6%, back to its old high 6.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 2% over that stretch · deepest drop along the way 22.2%, back to its old high 1.5 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 2 sales ($496K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 2, 2026 | Michelle Hulgrave EVP & CFO | sell | $258K |
| May 18, 2026 | Greg C Smith Director | sell | $238K |
Who owns it
ETFs with the most weight in PAG
| RFV Invesco S&P MidCap 400® Pure Value ETF | 1.88% |
| GRPM Invesco S&P MidCap 400 GARP ETF | 1.42% |
| RWK Invesco S&P MidCap 400 Revenue ETF | 1.29% |
| XMLV Invesco S&P MidCap Low Volatility ETF | 1.03% |
| SMIG Bahl & Gaynor Small/Mid Cap Income Growth ETF | 1.03% |
| CZA Invesco Zacks Mid-Cap ETF | 0.66% |
| FNK First Trust Mid Cap Value AlphaDEX Fund | 0.5% |
| JSMD Janus Henderson Small/Mid Cap Growth Alpha ETF | 0.41% |
What could go wrong
- Heavy reliance on a few carmakers. BMW/MINI, Audi/Volkswagen/Porsche/Bentley, Toyota/Lexus and Mercedes-Benz dealerships produced 73% of car dealership revenue in 2025. The truck business relies on Daimler's Freightliner and Western Star. Problems at these makers hit Penske directly.
- Carmakers could change how cars are sold. Manufacturers set franchise terms. Some are moving toward selling directly or through agency models that pay dealers only a fee. Online retailers add competition. These shifts could squeeze dealer profits.
- Pressure on its big U.K. business. U.K. rules require 33% of 2026 new-car sales to be electric. Premium new-car sales across the U.K. fell 6.8% in 2025. Chinese brands, a small part of Penske's U.K. sales, gained share.
- Freight slump weighs on truck businesses. The February 2026 annual report describes a recession-like freight market. Truck sales fell at Premier Truck Group, and rental and used-truck demand was weak at Penske Transportation Solutions. A longer slump would keep hurting results.
- Shifting U.S. tariffs on vehicles and parts. U.S. tariffs on vehicles, trucks and parts affected Penske's suppliers and operations in 2025. The Supreme Court struck down some tariffs in February 2026, but the administration plans others, so policy remains unsettled.
- Currency swings change reported results. The U.K. supplied 26.2% and other foreign markets 12.2% of 2025 revenue. When the dollar strengthens, those sales and profits are worth fewer dollars after conversion.
Recent events
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation; Executive or board change; Other company announcement
- Other company announcement
- Other company announcement
- Quarterly results released; Investor presentation or announcement
- Other company announcement
- Shareholder vote results; Other company announcement
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement; Other company announcement
- Major agreement signed; Investor presentation or announcement
For income and retirement investors
Penske has raised its regular dividend for five straight years, from $0.84 a share in 2020 to $5.18 in 2025. That is an average gain of 43.9% a year. In 2025, dividends used 36.8% of earnings and 52.9% of free cash flow, the cash left after running and investing in the business. Free cash flow fell to $650.5 million from $852.8 million in 2024. The yield was 2.66% as of October 28, 2026. The company also spent $1.73 billion repurchasing shares from 2021 through 2025. Its share count fell 18.3% between July 2021 and July 2026.
In the 2008 financial crisis, the stock dropped 77.6% and took until April 2011 to recover. It fell 59.6% in the 2020 COVID crash but recovered by October 2020. In the 2022 bear market, it fell 22.2% at its worst but was down only 2% over the market's whole slide. As a single stock, Penske carries more risk than a diversified fund.
Questions investors ask
How does Penske Automotive Group make money?
Mostly by selling and servicing cars. In 2025, retail car dealerships produced 86.4% of its $31.8 billion revenue. Commercial truck dealerships added 10.7%, and commercial vehicle distribution and other operations 2.9%. Beyond vehicle sales, dealerships earn higher-margin income from service, parts, and arranging outside financing, insurance and extended warranties. Service and parts produce the largest part of its car dealership gross profit. It also owns 28.9% of Penske Transportation Solutions and records its share of that firm's earnings.
Does Penske Automotive raise its dividend every year?
Yes, for the five years through 2025. Its regular dividend rose every year from $0.84 a share in 2020 to $5.18 in 2025, an average gain of 43.9% a year. In 2025, it paid out 36.8% of earnings and 52.9% of free cash flow (cash left after running and investing in the business) as dividends. A five-year streak is short next to companies with decades of increases, and past raises don't guarantee future ones. The yield was 2.66% as of October 28, 2026.
What car brands does Penske Automotive sell?
More than 40 vehicle brands, with a heavy tilt toward premium names. In 2025, premium brands such as Audi, BMW, Land Rover, Lexus, Mercedes-Benz and Porsche produced 71% of franchised car dealership revenue. Volume foreign brands such as Toyota and Honda added 23%. BMW/MINI dealerships alone supplied 25% of car dealership revenue, Audi/Volkswagen/Porsche/Bentley 22% and Toyota/Lexus 18%. Its truck dealerships sell mainly Freightliner and Western Star, both Daimler brands.
How has Penske Automotive stock performed over the long term?
It has risen sharply over the past decade, but with deep drops along the way. Based on share price, the stock gained an average of 20% a year over the 10 years to October 28, 2026, and 17.7% a year over five years. It has also fallen as much as 79.4% from a peak. That includes a 77.6% fall in the 2008 financial crisis and a 59.6% fall in the 2020 COVID crash. Past returns don't predict future results.
How much debt does Penske Automotive Group have?
About $2.5 billion in total debt as of June 30, 2026, against $69.5 million of cash. That leaves net debt of about $2.4 billion. Shareholders' equity (assets minus liabilities) was $5.8 billion, and total assets were $18.5 billion. Debt is a fixed claim: interest is owed whether car and truck sales are strong or weak. That adds risk in a downturn.