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If You Invested $1000 in Penske Automotive 10 Years Ago, This Is How Much You'd Have Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Penske Automotive (PAG - Free Report) ten years ago? It may not have been easy to hold on to PAG for all that time, but if you did, how much would your investment be worth today?
Penske Automotive's Business In-Depth
With that in mind, let's take a look at Penske Automotive's main business drivers.
Established in 1990, Penske Automotive Group, Inc., based in Bloomfield Hills, MI, engages in the operation of automotive and commercial truck dealerships in the United States, Canada and Western Europe. The company also distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. It employs more than 23,000 people across the globe.
The company also offers higher margin products such as finance, insurance and vehicle service contracts; maintenance repair services; replacement parts and aftermarket automotive products.
Penske operates under three reportable segments, Retail Automotive, Commercial Truck and Commercial Vehicles Australia/Power Systems.
Retail Automotive which deals with retail automotive dealership operations generated 88% of revenues in 2021.
Commercial Truck, which consists of the U.S. retail commercial truck dealership operations generated 9.6% of the revenues in 2021. The company operates a heavy and medium-duty truck dealership group known as Premier Truck Group (PTG) with locations in Texas, Oklahoma, Tennessee, Georgia, and Canada.
Commercial Vehicles Australia/Power Systems and Other generated 2.4% of the revenues in 2021. The company is the exclusive importer and distributor of Western Star heavy-duty trucks (a Daimler brand), MAN heavy and medium-duty trucks and buses (a VW Group brand), and Dennis Eagle refuse collection vehicles.
In 2021, its retail automotive brand mix consisted of 71% Premium, 21% Volume non-U.S., 7% Car Shop Used-Vehicle Centers and 1% General Motors/Chrysler.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Penske Automotive a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in March 2012 would be worth $4,174.30, or a 317.43% gain, as of March 25, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 223.54% and gold's return of 13.37% over the same time frame.
Looking ahead, analysts are expecting more upside for PAG.
Penske is riding high on strategic acquisitions. It has become the largest dealership group for Freightliner in North America with Warner Truck Centers buyout. Acquisition of Kansas City Freightliner, completed in the second quarter of 2021, is expected to add $450 million in Penske’s annualized revenue. The McCoy buyout, completed in November, may boost the top line of Penske’s PTG subsidiary. Penske Transportation Solutions (PTS) joint venture and acquisition of Black Horse Carriers are driving sales. But, it faces the brunt of escalating SG&A costs and adverse forex translations, which may limit earnings. High debt levels and tight inventory led by the ongoing chip crisis are other concerns. Also, tough competition may lower selling prices. Hence, the stock warrants a cautious stance at the moment.
Over the past four weeks, shares have rallied 6.96%, and there have been 5 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Penske Automotive 10 Years Ago, This Is How Much You'd Have Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Penske Automotive (PAG - Free Report) ten years ago? It may not have been easy to hold on to PAG for all that time, but if you did, how much would your investment be worth today?
Penske Automotive's Business In-Depth
With that in mind, let's take a look at Penske Automotive's main business drivers.
Established in 1990, Penske Automotive Group, Inc., based in Bloomfield Hills, MI, engages in the operation of automotive and commercial truck dealerships in the United States, Canada and Western Europe. The company also distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. It employs more than 23,000 people across the globe.
The company also offers higher margin products such as finance, insurance and vehicle service contracts; maintenance repair services; replacement parts and aftermarket automotive products.
Penske operates under three reportable segments, Retail Automotive, Commercial Truck and Commercial Vehicles Australia/Power Systems.
Retail Automotive which deals with retail automotive dealership operations generated 88% of revenues in 2021.
Commercial Truck, which consists of the U.S. retail commercial truck dealership operations generated 9.6% of the revenues in 2021. The company operates a heavy and medium-duty truck dealership group known as Premier Truck Group (PTG) with locations in Texas, Oklahoma, Tennessee, Georgia, and Canada.
Commercial Vehicles Australia/Power Systems and Other generated 2.4% of the revenues in 2021. The company is the exclusive importer and distributor of Western Star heavy-duty trucks (a Daimler brand), MAN heavy and medium-duty trucks and buses (a VW Group brand), and Dennis Eagle refuse collection vehicles.
In 2021, its retail automotive brand mix consisted of 71% Premium, 21% Volume non-U.S., 7% Car Shop Used-Vehicle Centers and 1% General Motors/Chrysler.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Penske Automotive a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in March 2012 would be worth $4,174.30, or a 317.43% gain, as of March 25, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 223.54% and gold's return of 13.37% over the same time frame.
Looking ahead, analysts are expecting more upside for PAG.
Penske is riding high on strategic acquisitions. It has become the largest dealership group for Freightliner in North America with Warner Truck Centers buyout. Acquisition of Kansas City Freightliner, completed in the second quarter of 2021, is expected to add $450 million in Penske’s annualized revenue. The McCoy buyout, completed in November, may boost the top line of Penske’s PTG subsidiary. Penske Transportation Solutions (PTS) joint venture and acquisition of Black Horse Carriers are driving sales. But, it faces the brunt of escalating SG&A costs and adverse forex translations, which may limit earnings. High debt levels and tight inventory led by the ongoing chip crisis are other concerns. Also, tough competition may lower selling prices. Hence, the stock warrants a cautious stance at the moment.
Over the past four weeks, shares have rallied 6.96%, and there have been 5 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.