Yesterday, news jumped into the market: The oracle of Omaha, Warren Buffett (Trades, Portfolio) the mastermind behind the investment holding Berkshire Hathaway, bought an auto dealer. What - Auto and Dealer?
Yes, Buffett acquired an auto dealer. He still owns shares of car manufacturer General Motors and adds a fully business from the distribution site. The company named Van Tuyl Group and generated around USD 8 billion in revenue.
Van Tuyl Group says it is the biggest privately owned auto dealership group in the U.S. It has 78 independently operated dealerships and more than 100 franchises in 10 states. The company will be renamed Berkshire Hathaway Automotive and be based in Dallas.
Below are five dividend paying alternatives from the auto dealership industry. Most of the industry members pay no dividends but for nearly all, double-digit earnings growth is predicted. If you like to follow my stories, please subscribe my blog news.
5 dividend paying auto dealers are..
#1 Penske Automotive (NYSE:PAG) has a market capitalization of $3.79 billion. The company employs 18,000 people, generates revenue of $14.705 billion and has a net income of $251.10 million. Penske Automotive's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $497.90 million. The EBITDA margin is 3.39 percent (the operating margin is 2.97 percent and the net profit margin 1.71 percent).
Financial Analysis: The total debt represents 57.20 percent of Penske Automotive's assets and the total debt in relation to the equity amounts to 243.94 percent. Due to the financial situation, a return on equity of 17.77 percent was realized by Penske Automotive. Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, Penske Automotive paid $0.62 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.79, the P/S ratio is 0.25 and the P/B ratio is finally 2.46. The dividend yield amounts to 1.95 percent and the beta ratio has a value of 1.77. See the alternatives #2-#5 here: Warren Buffett (Trades, Portfolio) Buys An Auto Dealer - Here Are 5 Top Dividend Paying Auto dealers...
