Penske Automotive Return On Asset vs. Gross Profit
| UA9 Stock | EUR 150.00 1.00 0.67% |
For Penske Automotive profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Penske Automotive to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Penske Automotive Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Penske Automotive's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Penske Automotive Group over time as well as its relative position and ranking within its peers.
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Penske Automotive Gross Profit vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Penske Automotive's current stock value. Our valuation model uses many indicators to compare Penske Automotive value to that of its competitors to determine the firm's financial worth. Penske Automotive Group is rated below average in return on asset category among its peers. It is rated below average in gross profit category among its peers fabricating about 71,792,284,866 of Gross Profit per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Penske Automotive's earnings, one of the primary drivers of an investment's value.Penske Gross Profit vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Penske Automotive |
| = | 0.0674 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Penske Automotive |
| = | 4.84 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Penske Gross Profit Comparison
Penske Automotive is rated fifth in gross profit category among its peers.
Penske Automotive Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Penske Automotive, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Penske Automotive will eventually generate negative long term returns. The profitability progress is the general direction of Penske Automotive's change in net profit over the period of time. It can combine multiple indicators of Penske Automotive, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Penske Automotive Group, Inc. operates as a transportation services company. Penske Automotive Group, Inc. is headquartered in Bloomfield Hills, Michigan. PENSKE AUTOMOTIVE operates under Auto Truck Dealerships classification in Germany and is traded on Frankfurt Stock Exchange. It employs 27000 people.
Penske Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Penske Automotive. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Penske Automotive position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Penske Automotive's important profitability drivers and their relationship over time.
Use Penske Automotive in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Penske Automotive position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Penske Automotive will appreciate offsetting losses from the drop in the long position's value.Penske Automotive Pair Trading
Penske Automotive Group Pair Trading Analysis
The ability to find closely correlated positions to Penske Automotive could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Penske Automotive when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Penske Automotive - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Penske Automotive Group to buy it.
The correlation of Penske Automotive is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Penske Automotive moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Penske Automotive moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Penske Automotive can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Penske Automotive position
In addition to having Penske Automotive in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Retail Thematic Idea Now
Retail
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Retail theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Retail Theme or any other thematic opportunities.
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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 World Market Map. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
To fully project Penske Automotive's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Penske Automotive at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Penske Automotive's income statement, its balance sheet, and the statement of cash flows.