Penske Automotive Group, Inc.

Penske Automotive Group, Inc.

Penske Automotive Group, Inc.

Overview
Date Founded

1992

Headquarters

2555 TELEGRAPH ROAD, BLOOMFIELD HILLS, MI, 48302

Type of Company

Public

Employees (Worldwide)

27K

Industries

Automobiles
Retail: Other
Other Transportation
Consumer Services

Company Description

Penske Automotive Group, Inc. operates as an international transportation services company, which engages in the distribution of commercial vehicles, diesel engines, gas engines, power systems and related parts & services. It operates through the following segments: Retail Automotive, Retail Commercial Truck, Non-Automotive Investments and Other. The Retail Automotive segment consists of retail automotive dealership operations. The Retail Commercial Truck segment is the dealership operations of commercial trucks in the U.S. and Canada. The Other segment is comprised of commercial vehicle and power systems distribution operation and other non-automotive consolidated operations. The Non-Automotive Investments segment is the equity method investments in non-automotive operations. The company was founded in October 1992 and is headquartered in Bloomfield Hills, MI.

Contact Data
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Executives & Employees

President & Director

Executive Vice President & Chief Financial Officer

Executive Vice President, General Counsel & Corporate Secretary

Chief Information Officer & Executive Vice President

Chairman of the Sytner Group

President, Premier Truck Group

Senior Vice President & Controller

Managing Director of the Sytner Group

Executive Vice President-West Operations

Board of Directors

Co-Founder at Charlesbank Capital Partners LLC

Director at Penske Automotive Group, Inc.

Former Chief Executive Officer, President at Universal Technical Institute, Inc.

Former Chairman & Chief Executive Officer, Commercial Banking Group at Bank One Corp.

Former Chief Executive Officer at Papa Murphy's International LLC

Principal at Greg C. Smith LLC

Former Chairman & Chief Executive Officer at Bentley Motors Ltd.

Chairman-Emeritus at Penn Medicine Princeton Health

Former Chief Executive Officer, Gas & Power at Siemens AG

Senior Vice President at Mitsui & Co. (U.S.A.), Inc.

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Penske Automotive Group, Inc.
Owners & Shareholders
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BAM employs a value-focused global investment approach that seeks to preserve clients' capital while providing long-term superior investment returns. The firm offers investment strategies across many major asset classes, including but not limited to US large- and small/mid-cap, international, emerging markets and global equities. BAM employs a bottom-up investment approach, which focuses on strong business fundamentals and outstanding management teams and aims to reduce the inherent risk in investing. Their approach is designed to achieve lower volatility than the market averages. The firm's investment process is driven by limiting downside through a \"margin of safety\". They prefer to invest in companies that are capital rich, but which earn a high return on their financial capital. Companies that have a long history of good profitability, that generate high levels of free cash flow, are the basis of their investment style. BAM believes such businesses are the basis for most persistent long term outperformance in the capital markets, provided they are purchased at reasonable prices.

Details Hidden

Fenimore Asset Management (FAM) is a long-term value investor seeks to preserve their clients' assets and maximize total return on capital through investments that offer the potential for long-term growth. The firm looks for high-quality companies with very good growth potential that can be purchased at discount prices. FAM conducts extensive, independent research that includes creating detailed, 5-year models for each stock holding and analyzing balance sheets, cash flow statements and income statements. The firm's research team visits every company in which they invest at least annually and thoroughly analyzes the company, its industry and its competition. FAM's average stock holding period of 5 years or more helps to reduce capital gains. When selecting investments, FAM looks for companies: (1) with understandable businesses, competitive advantages and high profit margins (2) that have little or no debt and high free cash flow and that deploy capital wisely (3) with honest, superior management teams that have strong track records of increasing their companies' economic value and (4) that are trading at a discount to the firm's estimate of their true economic value. FAM invests only in companies that can be expected to achieve a 12% to 15% annualized return rate over 5 to 6 years. The firm discounts expected future cash flows to determine present value and applies a worst case value baseline of no growth and a discount of at least 10%. They also evaluate historical average multiples including: price/earnings, price/cash flow and price/sales.When investing in fixed income securities, FAM considers a number of factors such as price, coupon, yield-to-maturity, and duration. The credit rating from third party rating agencies is considered, however they rely on their fundamental analysis in determining their view of the quality of the issuer. In addition, FAM reviews the terms of the fixed income security, including such facets as subordination, default, sinking fund, and early redemption provisions. Fixed income instruments are reviewed on a continual basis to ensure that the underlying issuers are constantly capable of interest and principle repayment.

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Private Management group (PMG) reviews and may use investments other than traditional stock and bond instruments including preferred stock; convertible securities; hybrid securities; foreign securities; mutual funds or ETFs; US government securities or government sponsored entities; municipal securities; real estate or oil/gas limited partnerships; options or warrants; and other business ventures. They generally do not participate in IPOs, although they may consider them at any point. PMG typically invests in assets for the long-term (over six months). To a lesser degree, they may make short-term purchases.

Recent Transactions
Details Hidden

Vertu Motors Plc purchases Goodman Retail Ltd. /4 Volkswagen Car Dealerships from Penske Automotive Group, Inc.

Details Hidden

Penske Automotive Group, Inc. purchases The Around the Clock Freightliner Group LLC from WEC Energy Group, Inc.

Details Hidden

Penske Automotive Group, Inc. purchases The Car People Ltd.

Advisors & Consultants
Legal Advisor

Partner at Kirkland & Ellis LLP

Legal Advisor

Partner at Fried, Frank, Harris, Shriver & Jacobson LLP

Legal Advisor

Member (Attorney) at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Key Stats and Financials As of 2019
Market Capitalization
$2.88B
Total Enterprise Value
$12.9B
Earnings Per Share
$5.28
Revenue
$23.2B
EBITDAMargin
3.29%
Total Equity
$2.81B
EBITDA
$762M
Enterprise Value Sales
0.56x
Enterprise Value EBITDAOperating
13.77x
TEVNet Income
29.58x
Net Profit
$436M
Total Debt
$8.76B
Debt TEV
0.68x
Three Year Compounded Annual Growth Rate Of Revenue
4.83%
Five Year Compounded Annual Growth Rate Of Revenue
6.18%
Non-Profit Donations & Grants
Investments
Details Hidden

The Around the Clock Freightliner Group LLC engages in the sale and service of heavy and medium duty trucks and parts. The firm specializes in the sale of medium and heavy duty used trucks. Its products and services include new and used trucks and related parts and services, such as repair, down draft paint, frame straightening, hunter axle alignment, wash and dry, buff and wax, paint touch-up, tank and wheel polishing, aluminum polishing, chrome polishing, engine and window cleaning, vacuuming, shampooing carpets and upholstery and tire and interior dressing. The company was founded by Charles K. Bowen in July 1977 and is headquartered in Oklahoma City, OK.

Details Hidden

Cycle Express LLC provides auction services in the powersports industry. It offers online tools, auction services, lender services, and dealer consignments. The company was founded by Cliff Clifford in 1990 and is headquartered in Poway, CA.

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RideCell, Inc. provides an intelligent software platform that empowers mobility operators, including OEMs, car rental companies, auto clubs, cities, transit agencies, dealer groups, and private fleets to launch, expand, and maximize the utilization of their own ridesharing, carsharing, and autonomous fleet services. The company was founded by Aarjav Trivedi, Steve Dickerson, and ArunKumar Elangovan in 2009 and is headquartered in San Francisco, CA.

Investors
Details Hidden

President, Chief Executive Officer & Chairman at Watson Enterprises Incorporated

Details Hidden

Founder at Car Sense, Inc.

Suppliers
General Motors Company Other Transportation | Detroit, Michigan

General Motors Co. engages in the designing, manufacturing, and selling of cars, trucks and automobile parts. It also provides automotive financing services through General Motors Financial Company, Inc. The firm operates through the following segments: GM North America, GM International, Cruise and GM Financial. It sells vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Wuling, Maven, and OnStar brands. The company was founded by William C. Durant on September 16, 1908 and is headquartered in Detroit, MI.

Honda Motor Co., Ltd. Industrial Machinery & Manufacturing | Tokyo, Japan

Honda Motor Co., Ltd. engages in the manufacture and sale of automobiles, motorcycles, and power products. It operates through the following segments: Automobile, Motorcycle, Financial Services, and Power Product and Other Businesses. The Automobile segment manufactures and sells automobiles and related accessories. The Motorcycle segment handles all-terrain vehicles, motorcycle business, and related parts. The Financial Services segment provides financial and insurance services. The Power Product and Other Businesses segment offers power products and relevant parts. The company was founded by Soichiro Honda on September 24, 1948 and is headquartered in Tokyo, Japan.

Toyota Motor Corp. Computer Software | Toyota, Japan

Toyota Motor Corp. engages in the manufacture and sale of motor vehicles and parts. It operates through the following segments: Automotive, Financial Services, and All Other. The Automotive segment designs, manufactures, assembles and sells passenger cars, minivans, trucks, and related vehicle parts and accessories. It is also involved in the development of intelligent transport systems. The Financial Services segment offers purchase or lease financing to Toyota vehicle dealers and customers. It also provides retail leasing through lease contracts purchase by dealers. The All Others segment deals with the design and manufacture and sale of housing, telecommunications and other businesses. The company was founded by Kiichiro Toyoda on August 28, 1937 and is headquartered in Toyota, Japan.

Competitors
Ford Motor Company Automobiles - Dearborn, MI

Ford Motor Co. engages in the manufacture, distribution, and sale of automobiles. It operates through the following three segments: Automotive, Mobility, and Ford Credit. The Automotive segment engages in developing, manufacturing, marketing and servicing of Ford cars, Lincoln vehicles. The Mobility segment includes Ford Smart Mobility LLC and autonomous vehicles business. The Ford Credit segment comprises Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. The company was founded by Henry Ford on June 16, 1903 and is headquartered in Dearborn, MI.

PACCAR, Inc. Trucks, Construction & Farm Machinery - Bellevue, WA

PACCAR, Inc. is a global technology company, which engages in the design and manufacture of light, medium, and heavy-duty trucks. It operates through the following segments: Truck, Parts and Financial Services. The Truck segment designs and manufactures heavy, medium, and light duty diesel trucks which are marketed under the Kenworth, Peterbilt, and DAF brands. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment provides finance and leasing products; and services provided to truck customers and dealers. The company was founded by William Pigott Sr. in 1905 and is headquartered in Bellevue, WA.

AB Volvo Trucks, Construction & Farm Machinery - Gothenburg, Sweden

Volvo AB engages in the design, manufacture, and market of commercial vehicles. It operates through the following segments: Trucks, Construction Equipment, Buses, Volvo Penta, Group Functions and Other, Industrial Operations, and Financial Services. The Trucks segment includes the production, development, and logistics for powertrain and parts. The Volvo Penta segment markets marine and industrial engines. The Group Functions and Other segment encompasses Volvo Group IT and Volvo Group Real Estate. The company was founded by Assar-Thorvald Nathanael-Gabrielsson and Erik Gustaf Larson in 1915 and is headquartered in Göteborg, Sweden.

Awards & Honors
Rank #143
2016
Fortune Magazine - Fortune 1000 Companies
Sponsored by Fortune Magazine
Rank #143
2016
Fortune Magazine - Fortune 500 Companies
Sponsored by Fortune Magazine
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