Penske Automotive Group, Inc. cash flow to debt ratio of 12.07% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Penske Automotive Group, Inc.'s free cash flow has decreased -8.74% from $811.10M last year to $740.20M, signaling decreasing performance

Penske Automotive Group, Inc.'s debt to equity ratio is 1.64, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Penske Automotive Group, Inc.'s debt has increased relative to shareholder equity from 1.59 last year to 1.64 today, signaling weakened financials

Penske Automotive Group, Inc. has a net debt to EBITDA ratio of 5.16x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Penske Automotive Group, Inc.'s interest coverage ratio of 5.65 indicates that earnings with good margin can cover interest payments on company debt

Penske Automotive Group, Inc.'s profit margin has decreased (-5.07%) in the last year from 3.04% to 2.89%, signaling decreasing performance

Penske Automotive Group, Inc.'s short-term liabilities of $6.28G exceed its short-term assets of $6.19G, signaling financial risk

Penske Automotive Group, Inc.'s return on assets of 5.05% is higher than the 5.00% threshold, indicating efficient asset utilization

Penske Automotive Group, Inc.'s return on equity of 16.41%, is higher than 15.00%, indicating good performance

Penske Automotive Group, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Penske Automotive Group, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Penske Automotive Group, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Penske Automotive Group, Inc. has a free cash flow yield of 6.18%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Penske Automotive Group, Inc.'s yearly earnings has decreased -3.46% since last year from $968.90M to $935.40M, signaling decreasing performance

Penske Automotive Group, Inc.'s yearly revenue has increased 4.44% since last year from $30.46G to $31.81G, signaling increasing performance

ROIC 5.65% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Penske Automotive Group, Inc.'s 3-year revenue CAGR of 4.57% is positive, indicating growing revenue over the past 3 years

Penske Automotive Group, Inc. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance

Penske Automotive Group, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Penske Automotive Group, Inc. has insufficient data to evaluate this check.

Penske Automotive Group, Inc. has an earnings yield of 7.72%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Penske Automotive Group, Inc. is overvalued relative to its fair value price of 28.82 based on EBITDA multiple model

Penske Automotive Group, Inc. has an EV/EBITDA ratio of 12.55x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Penske Automotive Group, Inc. is undervalued relative to its fair value price of 411.67 based on Earnings Fair Value model

Penske Automotive Group, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Penske Automotive Group, Inc. has a price-to-book ratio of 2.11x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Penske Automotive Group, Inc. has a price-to-sales ratio of 0.37x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue