FRA:UA9's Gross Margin % is ranked worse than 62.84% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 19.835
vs FRA:UA9: 16.36
Penske Automotive Group had a gross margin of 16.52% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Penske Automotive Group was 0.10% per year.
Penske Automotive Group (FRA:UA9) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Penske Automotive Group had a gross margin of 16.52% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Penske Automotive Group Gross Margin % Related Terms
Penske Automotive Group Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:UA9 vs ALTB, KMX, LAD: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, Penske Automotive Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Penske Automotive Group Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Penske Automotive Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Penske Automotive Group (FRA:UA9) has a Gross Margin % of 16.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Penske Automotive Group and its competitors. This is near median its historical median of 15.98. Over the past decade, Penske Automotive Group's Gross Margin % has ranged from 14.75 to 17.40. According to the industry distribution chart, Penske Automotive Group ranks #822 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 62.8%.
Is Penske Automotive Group's Gross Margin % too high?
Penske Automotive Group's current Gross Margin % of 16.52% is near median its 10-year median of 15.98. Over the past 10 years, this metric has ranged from a low of 14.75 to a high of 17.40. The Vehicles & Parts industry median Gross Margin % is 19.84. Penske Automotive Group's value of 16.52% is 16.7% below this industry median. Based on the distribution chart, Penske Automotive Group ranks #822 out of 1308 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Penske Automotive Group has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Penske Automotive Group's Gross Margin % compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Penske Automotive Group ranks #822 out of 1308 companies for Gross Margin %. This places Penske Automotive Group in the lower half of its industry. The industry median Gross Margin % is 19.84. Penske Automotive Group's value of 16.52% is 16.7% below this benchmark. Historically, Penske Automotive Group's own Gross Margin % has ranged from 14.75 to 17.40 over the past decade. While the company's 10-year median is 15.98 vs. the industry median of 19.84, Penske Automotive Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penske Automotive Group's current Gross Margin % of 16.52% is 16.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Penske Automotive Group and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penske Automotive Group's current Gross Margin % is 16.52%, which is near median its own 10-year median of 15.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Penske Automotive Group stock overvalued right now?
Penske Automotive Group (FRA:UA9) has a current Gross Margin % of 16.52%. The stock's GF Value™ is €145.47, compared to a current price of €161.00 — trading 10.7% above its estimated fair value. The current Gross Margin % is 16.52%, which is near median its 10-year median of 15.98 and 16.7% below the Vehicles & Parts industry median of 19.84. Penske Automotive Group's overall GF Score™ is 86/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Penske Automotive Group (FRA:UA9), the current Gross Margin % is 16.52% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Penske Automotive Group (FRA:UA9) Overvalued in 2026?
Based on GuruFocus' analysis, Penske Automotive Group stock appears to be overvalued.
The current stock price of €161.00 is trading 10.7% above its estimated GF Value™ of €145.47.
Key valuation signals for FRA:UA9:
Gross Margin %: 16.52% (near median its 10-year median of 15.98)
GF Value™: €145.47 vs. price of €161.00 (10.7% above fair value)
Industry Position: 16.7% below the Vehicles & Parts median (#822 of 1308)
No single metric tells the full story. See the FRA:UA9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Penske Automotive Group operates in 19 US states and overseas. It has about 150 US and Puerto Rico light-vehicle stores as well as 217 franchised dealerships overseas, primarily in the United Kingdom but also in Australia, Germany, Italy, and Japan. The company is the third-largest US publicly traded dealership in terms of light-vehicle revenue and sells more than 40 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other segments are service and finance and insurance. The firm's Premier Truck Group owns 45 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 15 used-vehicle stores, mostly in the US and UK under the CarShop (US) and Sytner Select (UK) brands. Penske is based in Bloomfield Hills, Michigan.
86GF Score
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