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Forensic Analysis · Retail / Consumer Discretionary · as of Nov 9, 2026

Penske Automotive Group, Inc. (PAG)

A forensic read on Penske Automotive Group, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

B · Sound & dependable
Forensic grade
Grey Zone
Financial health
2.0
Distress distance
Clean
Earnings quality
2
Forensic signals
17.1%
ROE
-0.2%
Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Penske Automotive Group, Inc. earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 2.0, placing it in the Grey zone. 2 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

8.3%
FY2025
Return on invested capital. Return on invested capital is 8.3% in the latest fiscal year and slipping across FY2023–FY2025 from 10.5%. After-tax operating profit was $1.1B in FY2023 and $951M in FY2025, with operating income at 4.6% of revenue in FY2023, 4.3% in FY2024 and 4.0% in FY2025. The capital base behind it grew +13% across FY2023–FY2025, from $10.1B to $11.4B, while the return fell 2.2 points, so the dollars added over that window earned less than the 10.5% the older base was already earning.
$41M
FY2023
Goodwill impairments. Took $41M of goodwill writedowns across 1 year (FY2023 ($41M)) — about 4% of net income over the span. Writedowns mean past acquisitions underperformed what was paid for them.

Key fundamentals

Latest Revenue$31.81B
Revenue Growth YoY-0.2%
Revenue CAGR (2yr)+1.4%
Net Margin2.9%
Free Cash Flow$650.5M
Return on Equity17.1%
Debt / Equity0.39x

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Data from SEC EDGAR public filings · metrics as of Nov 9, 2026. Forensic signals flag probability, not certainty.

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