Penske Automotive Group Inc. (PAG) exhibits 16.4% gross margins and 13.8% return on invested capital within Consumer Discretionary (Retail-Auto Dealers and Gas Stations), balanced against a 6.3x enterprise multiple and 4.8% implied options volatility.
Sustained 16.4% gross profitability converts into 4.0% operating margin and 13.8% ROIC, outpacing sector cost of capital.
ROIC: 13.8% // GM: 16.4%YoY revenue trajectory of -0.2% paired with -3.27% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -0.2% // FCF YLD: -3.27%Altman Z-Score of 3.20 and Piotroski F-Score of 4/9 indicate low near-term refinancing stress.
ALTMAN Z: 3.20 // F-SCORE: 4/9Trading at 14.9x trailing P/E (13.9x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 14.9x // EV/EBITDA: 6.3xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $212.12 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Retail-Auto Dealers and Gas Stations require continuous execution to defend 2.9% net margins.
NET MARGIN: 2.9% // D/E: 0.33x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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