Penske Automotive Group (FRA:UA9) Beneish M-Score : -2.52 (As of Dec. 15, 2024)

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What is Penske Automotive Group Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Penske Automotive Group's Beneish M-Score or its related term are showing as below:

FRA:UA9' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97 Med: -2.48 Max: -2.28
Current: -2.52

During the past 13 years, the highest Beneish M-Score of Penske Automotive Group was -2.28. The lowest was -2.97. And the median was -2.48.

Penske Automotive Group Beneish M-Score Historical Data

The historical data trend for Penske Automotive Group's Beneish M-Score can be seen below:

* 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.

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Penske Automotive Group Beneish M-Score Chart

Penske Automotive Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.51

-2.88

-2.66

-2.49

-2.36

Penske Automotive Group Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.47	-2.36	-2.48	-2.46	-2.52

Competitive Comparison of Penske Automotive Group's Beneish M-Score

For the Auto & Truck Dealerships subindustry, Penske Automotive Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Penske Automotive Group's Beneish M-Score falls into.

Penske Automotive Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Penske Automotive Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0185

0.528 * 1.0228

0.404 * 0.9697

0.892 * 1.006

0.115 * 0.9454

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0113

4.679 * -0.019048

0.327 * 1.0195

-2.56

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €921 Mil.
Revenue was 6839.311 + 7150.234 + 6851.976 + 6668.516 = €27,510 Mil.
Gross Profit was 1120.123 + 1174.349 + 1145.584 + 1089.488 = €4,530 Mil.
Total Current Assets was €5,567 Mil.
Total Assets was €15,376 Mil.
Property, Plant and Equipment(Net PPE) was €4,978 Mil.
Depreciation, Depletion and Amortization(DDA) was €142 Mil.
Selling, General, & Admin. Expense(SGA) was €3,206 Mil.
Total Current Liabilities was €6,086 Mil.
Long-Term Debt & Capital Lease Obligation was €3,215 Mil.
Net Income was 203.716 + 224.075 + 197.984 + 174.872 = €801 Mil.
Non Operating Income was 54.691 + 50.166 + 30.636 + 10.454 = €146 Mil.
Cash Flow from Operations was 244.171 + 218.408 + 419.52 + 65.474 = €948 Mil.

Total Receivables was €898 Mil.
Revenue was 6978.589 + 6893.426 + 6854.626 + 6619.139 = €27,346 Mil.
Gross Profit was 1143.515 + 1174.979 + 1169.648 + 1116.941 = €4,605 Mil.
Total Current Assets was €4,665 Mil.
Total Assets was €13,877 Mil.
Property, Plant and Equipment(Net PPE) was €4,716 Mil.
Depreciation, Depletion and Amortization(DDA) was €127 Mil.
Selling, General, & Admin. Expense(SGA) was €3,151 Mil.
Total Current Liabilities was €4,637 Mil.
Long-Term Debt & Capital Lease Obligation was €3,597 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(920.552 / 27510.037)	/	(898.396 / 27345.78)
	=	0.033462	/	0.032853
	=	1.0185

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(4605.083 / 27345.78)	/	(4529.544 / 27510.037)
	=	0.168402	/	0.164651
	=	1.0228

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (5567.099 + 4978.205) / 15375.925)	/	(1 - (4664.948 + 4716.108) / 13876.97)
	=	0.314168	/	0.323984
	=	0.9697

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	27510.037	/	27345.78
	=	1.006

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(126.704 / (126.704 + 4716.108))	/	(141.695 / (141.695 + 4978.205))
	=	0.026163	/	0.027675
	=	0.9454

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(3205.509 / 27510.037)	/	(3150.725 / 27345.78)
	=	0.116521	/	0.115218
	=	1.0113

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((3215.489 + 6085.624) / 15375.925)	/	((3596.862 + 4637.307) / 13876.97)
	=	0.604914	/	0.593369
	=	1.0195

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(800.647 - 145.947	-	947.573)	/	15375.925
	=	-0.019048

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Penske Automotive Group has a M-score of -2.56 suggests that the company is unlikely to be a manipulator.

Penske Automotive Group Beneish M-Score Related Terms

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Penske Automotive Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Penske Automotive Group Inc (FRA:UA9) » Definitions » Beneish M-Score

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Traded in Other Exchanges

PAG:USA UA9:Germany

Address

2555 Telegraph Road, Bloomfield Hills, MI, USA, 48302-0954

Website

https://www.penskeautomotive.com

Penske Automotive Group operates in about 20 us states and overseas. It has over 150 us and Puerto Rico light-vehicle stores as well as 210 franchised dealerships overseas, primarily in the United Kingdom but also in Australia, Continental Europe, and Japan. The company is the third-largest us-based 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 46 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns nearly 20 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.

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