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Penske Automotive GroupFRA:UA9 +1.60%82 Return-on-Tangible-Equity is 53.82% as of Mar. 2026, which is 51% below its 10-year median of 109.10. GuruFocus rates FRA:UA9 with a GF Score™ of 82/100 and a GF Value™ of €146.96. The stock has 9 warning signs investors should review. Among 1,281 Vehicles & Parts companies, Penske Automotive Group ranks better than 94.54% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Penske Automotive Group's annualized net income for the quarter that ended in Mar. 2026 was €811 Mil. Penske Automotive Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,508 Mil. Therefore, Penske Automotive Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 53.82%.
The historical rank and industry rank for Penske Automotive Group's Return-on-Tangible-Equity or its related term are showing as below:
FRA:UA9'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 46.71 Med: 109.1 Max: 695.54
Current: 46.71
During the past 13 years, Penske Automotive Group's highest Return-on-Tangible-Equity was 695.54%. The lowest was 46.71%. And the median was 109.10%.
FRA:UA9's Return-on-Tangible-Equity is ranked better than 94.54% of 1281
companies
in the Vehicles & Parts industry
Industry Median: 7.58
vs FRA:UA9: 46.71
Penske Automotive Group (FRA:UA9) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Penske Automotive Group Return-on-Tangible-Equity Related Terms
Penske Automotive Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Penske Automotive Group's Return-on-Tangible-Equity 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.
Penske Automotive Group Return-on-Tangible-Equity Chart
FRA:UA9 vs ALTB, KMX, LAD: Return-on-Tangible-Equity Comparison
For the Auto & Truck Dealerships subindustry, Penske Automotive Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Penske Automotive Group's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 53.82% mean?
Penske Automotive Group (FRA:UA9) has a Return-on-Tangible-Equity of 53.82% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Penske Automotive Group and its competitors. This is 51% below median its historical median of 109.10. Over the past decade, Penske Automotive Group's Return-on-Tangible-Equity has ranged from 46.71 to 695.54. According to the industry distribution chart, Penske Automotive Group ranks #70 out of 1281 companies in the Vehicles & Parts industry, placing it in the top 5.5%.
Is Penske Automotive Group's Return-on-Tangible-Equity too high?
Penske Automotive Group's current Return-on-Tangible-Equity of 53.82% is 51% below median its 10-year median of 109.10. Over the past 10 years, this metric has ranged from a low of 46.71 to a high of 695.54. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.58. Penske Automotive Group's value of 53.82% is 610% above this industry median. Based on the distribution chart, Penske Automotive Group ranks #70 out of 1281 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Penske Automotive Group has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Penske Automotive Group's Return-on-Tangible-Equity compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Penske Automotive Group ranks #70 out of 1281 companies for Return-on-Tangible-Equity. This places Penske Automotive Group in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.58. Penske Automotive Group's value of 53.82% is 610% above this benchmark. Historically, Penske Automotive Group's own Return-on-Tangible-Equity has ranged from 46.71 to 695.54 over the past decade. While the company's 10-year median is 109.10 vs. the industry median of 7.58, Penske Automotive Group has consistently been above 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 Return-on-Tangible-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.58, based on 1,281 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penske Automotive Group's current Return-on-Tangible-Equity of 53.82% is 610% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Penske Automotive Group and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penske Automotive Group's current Return-on-Tangible-Equity is 53.82%, which is 51% below median its own 10-year median of 109.10. 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 Return-on-Tangible-Equity of 53.82%. The stock's GF Value™ is €146.96, compared to a current price of €191.00 — trading 30% above its estimated fair value. The current Return-on-Tangible-Equity is 53.82%, which is 51% below median its 10-year median of 109.10 and 610% above the Vehicles & Parts industry median of 7.58. Penske Automotive Group's overall GF Score™ is 82/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Penske Automotive Group (FRA:UA9), the current Return-on-Tangible-Equity is 53.82% 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 €191.00 is trading 30% above its estimated GF Value™ of €146.96.
Key valuation signals for FRA:UA9:
Return-on-Tangible-Equity: 53.82% (51% below median its 10-year median of 109.10)
GF Value™: €146.96 vs. price of €191.00 (30% above fair value)
Industry Position: 610% above the Vehicles & Parts median (#70 of 1281)
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.
82GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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