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Penske Automotive Group Beneish M-Score

: -2.84 (As of Today)
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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 -2.84 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:

NYSE:PAG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.42   Med: -2.45   Max: -0.05
Current: -2.84

-3.42
-0.05

During the past 13 years, the highest Beneish M-Score of Penske Automotive Group was -0.05. The lowest was -3.42. And the median was -2.45.


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.

* Premium members only.

Penske Automotive Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.35 -2.42 -2.61 -2.51 -2.88

Penske Automotive Group Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.70 -2.88 -2.29 -2.47 -2.84

Competitive Comparison

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 Beneish M-Score Distribution

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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.712+0.528 * 0.9257+0.404 * 1.129+0.892 * 1.2216+0.115 * 0.9671
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9449+4.679 * -0.0732-0.327 * 0.8916
=-2.84

* 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.

This Year (Sep21) TTM:Last Year (Sep20) TTM:
Accounts Receivable was $738 Mil.
Revenue was 6497.3 + 6987.5 + 5773.8 + 5812.1 = $25,071 Mil.
Gross Profit was 1165.7 + 1182.7 + 913.2 + 898.4 = $4,160 Mil.
Total Current Assets was $3,577 Mil.
Total Assets was $12,719 Mil.
Property, Plant and Equipment(Net PPE) was $4,790 Mil.
Depreciation, Depletion and Amortization(DDA) was $120 Mil.
Selling, General, & Admin. Expense(SGA) was $2,798 Mil.
Total Current Liabilities was $3,837 Mil.
Long-Term Debt & Capital Lease Obligation was $3,698 Mil.
Net Income was 355.1 + 338.9 + 182.5 + 200.2 = $1,077 Mil.
Non Operating Income was 120.5 + 88.6 + 55.4 + 60.1 = $325 Mil.
Cash Flow from Operations was 414 + 677.5 + 239.3 + 352.1 = $1,683 Mil.
Accounts Receivable was $848 Mil.
Revenue was 5971.6 + 3651.1 + 5009.1 + 5891.6 = $20,523 Mil.
Gross Profit was 956.5 + 552.9 + 776.7 + 866.5 = $3,153 Mil.
Total Current Assets was $4,349 Mil.
Total Assets was $13,010 Mil.
Property, Plant and Equipment(Net PPE) was $4,717 Mil.
Depreciation, Depletion and Amortization(DDA) was $114 Mil.
Selling, General, & Admin. Expense(SGA) was $2,424 Mil.
Total Current Liabilities was $4,109 Mil.
Long-Term Debt & Capital Lease Obligation was $4,535 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(737.7 / 25070.7) / (848.2 / 20523.4)
=0.02942479 / 0.04132843
=0.712

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)
=(3152.6 / 20523.4) / (4160 / 25070.7)
=0.15361003 / 0.16593075
=0.9257

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 - (3576.7 + 4789.5) / 12719.3) / (1 - (4349.4 + 4716.6) / 13009.7)
=0.34224368 / 0.30313535
=1.129

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
=25070.7 / 20523.4
=1.2216

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))
=(114 / (114 + 4716.6)) / (119.8 / (119.8 + 4789.5))
=0.02359955 / 0.02440266
=0.9671

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)
=(2797.6 / 25070.7) / (2423.8 / 20523.4)
=0.11158843 / 0.11809934
=0.9449

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)
=((3697.8 + 3836.7) / 12719.3) / ((4535.4 + 4108.5) / 13009.7)
=0.5923675 / 0.66441963
=0.8916

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
=(1076.7 - 324.6 - 1682.9) / 12719.3
=-0.0732

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 -2.84 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

Penske Automotive Group logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 441110 SIC : 5511
Traded in Other Exchanges
Address
2555 Telegraph Road, Bloomfield Hills, MI, USA, 48302-0954
Penske Automotive Group operates in 22 U.S. states and overseas. It has 143 U.S. light-vehicle franchises including in Puerto Rico as well as 161 franchises overseas, primarily in the United Kingdom. The company is the second- largest U.S.-based dealership in terms of light-vehicle revenue and sells more than 35 brands, with 93% of retail automotive revenue coming from luxury and import names. Other services, in addition to new and used vehicles, are parts and repair and finance and insurance. The firm's Premier Truck Group owns 35 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 19 CarShop used-vehicle stores in the U.S. and U.K. The company is based in Michigan and was called United Auto Group before changing its name in 2007.
Executives
Carlson John D. Jr. officer: EVP & CFO 2555 TELEGRAPH RD. BLOOMFIELD HILLS MI 48302
Barr John director 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302-0954
Spradlin Shane M. officer: EVP, Gen. Counsel & Sec. 2555 TELEGRAPH RD. BLOOMFIELD HILLS MI 48302
Penske Roger S director, 10 percent owner, officer: Chair & CEO 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302-0954
Denker Claude H Iii officer: EVP - Human Resources 2555 TELEGRAPH RD BLOOMFIELD HILLS MI 48302
Kurnick Robert H Jr director, officer: President 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302-0954
Penske Gregory W director 3534 NORTH PECK ROAD EL MONTE CA 91731
Pierce Sandra E. director 2555 TELEGRAPH RD. BLOOMFIELD HILLS MI 48302
Duerheimer Wolfgang director 2555 TELEGRAPH RD BLOOMFIELD HILLS MI 48302
Penske Roger S Jr director 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302
Mcwaters Kimberly J director 20410 NORTH 19TH AVENUE PHOENIX AZ 85027
Smith Greg C director FORD MOTOR COMPANY 21175 OAKWOOD BLVD DEARBORN MI 48124
Davis Lisa Ann director 2555 TELEGRAPH RD BLOOMFIELD HILLS MI 48302
Eisenson Michael R director C/O CHARLESBANK CAPITAL PARTNERS 600 ATLANTIC AV 28TH FL BOSTON MA 02210
Thompson H Brian director 1950 OLD GALLOWS ROAD SUITE 201 VIENNA VA 22182

Penske Automotive Group Headlines

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