Penske Automotive (Germany) Buy Hold or Sell Recommendation
| UA9 Stock | EUR 150.00 1.00 0.67% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Penske Automotive Group is 'Strong Hold'. Macroaxis provides Penske Automotive buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding UA9 positions.
Check out Penske Automotive Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Penske and provide practical buy, sell, or hold advice based on investors' constraints. Penske Automotive Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Penske |
Execute Penske Automotive Buy or Sell Advice
The Penske recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Penske Automotive Group. Macroaxis does not own or have any residual interests in Penske Automotive Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Penske Automotive's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Penske Automotive Trading Alerts and Improvement Suggestions
| Penske Automotive has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Penske Automotive Group has accumulated 1.55 B in total debt with debt to equity ratio (D/E) of 313.5, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Penske Automotive has a current ratio of 0.96, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Penske Automotive until it has trouble settling it off, either with new capital or with free cash flow. So, Penske Automotive's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Penske Automotive sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Penske to invest in growth at high rates of return. When we think about Penske Automotive's use of debt, we should always consider it together with cash and equity. | |
| Over 81.0% of Penske Automotive outstanding shares are owned by institutional investors |
Penske Automotive Returns Distribution Density
The distribution of Penske Automotive's historical returns is an attempt to chart the uncertainty of Penske Automotive's future price movements. The chart of the probability distribution of Penske Automotive daily returns describes the distribution of returns around its average expected value. We use Penske Automotive Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Penske Automotive returns is essential to provide solid investment advice for Penske Automotive.
| Mean Return | 0.08 | Value At Risk | -2.09 | Potential Upside | 2.70 | Standard Deviation | 1.48 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Penske Automotive historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Penske Automotive Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Penske Automotive or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Penske Automotive's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Penske stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.05 | |
β | Beta against Dow Jones | 0.95 | |
σ | Overall volatility | 1.45 | |
Ir | Information ratio | 0.04 |
Penske Automotive Volatility Alert
Penske Automotive Group has relatively low volatility with skewness of 0.52 and kurtosis of 0.6. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Penske Automotive's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Penske Automotive's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Penske Automotive Fundamentals Vs Peers
Comparing Penske Automotive's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Penske Automotive's direct or indirect competition across all of the common fundamentals between Penske Automotive and the related equities. This way, we can detect undervalued stocks with similar characteristics as Penske Automotive or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Penske Automotive's fundamental indicators could also be used in its relative valuation, which is a method of valuing Penske Automotive by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Penske Automotive to competition |
| Fundamentals | Penske Automotive | Peer Average |
| Return On Equity | 0.34 | -0.31 |
| Return On Asset | 0.0674 | -0.14 |
| Profit Margin | 0.05 % | (1.27) % |
| Operating Margin | 0.05 % | (5.51) % |
| Current Valuation | 14.53 B | 16.62 B |
| Shares Outstanding | 69.07 M | 571.82 M |
| Shares Owned By Insiders | 21.55 % | 10.09 % |
| Shares Owned By Institutions | 80.81 % | 39.21 % |
| Price To Earning | 7.79 X | 28.72 X |
| Price To Book | 2.19 X | 9.51 X |
| Price To Sales | 0.30 X | 11.42 X |
| Revenue | 27.81 B | 9.43 B |
| Gross Profit | 4.84 B | 27.38 B |
| EBITDA | 2.11 B | 3.9 B |
| Net Income | 1.38 B | 570.98 M |
| Cash And Equivalents | 43.8 M | 2.7 B |
| Cash Per Share | 0.53 X | 5.01 X |
| Total Debt | 1.55 B | 5.32 B |
| Debt To Equity | 313.50 % | 48.70 % |
| Current Ratio | 0.98 X | 2.16 X |
| Book Value Per Share | 59.53 X | 1.93 K |
| Cash Flow From Operations | 1.46 B | 971.22 M |
| Earnings Per Share | 17.37 X | 3.12 X |
| Price To Earnings To Growth | 1.71 X | 4.89 X |
| Target Price | 116.67 | |
| Number Of Employees | 26.5 K | 18.84 K |
| Beta | 1.29 | -0.15 |
| Market Capitalization | 9.55 B | 19.03 B |
| Total Asset | 14.11 B | 29.47 B |
| Z Score | 4.6 | 8.72 |
| Annual Yield | 0.02 % | |
| Five Year Return | 2.12 % | |
| Net Asset | 14.11 B |
Penske Automotive Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Penske . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Daily Balance Of Power | 9.2 T | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 150.0 | |||
| Day Typical Price | 150.0 | |||
| Price Action Indicator | 0.5 | |||
| Period Momentum Indicator | 1.0 |
About Penske Automotive Buy or Sell Advice
When is the right time to buy or sell Penske Automotive Group? Buying financial instruments such as Penske Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
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Additional Information and Resources on Investing in Penske Stock
When determining whether Penske Automotive is a strong investment it is important to analyze Penske Automotive's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Penske Automotive's future performance. For an informed investment choice regarding Penske Stock, refer to the following important reports:Check out Penske Automotive Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.