The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 3.06 is strong.
Penske Automotive Group has a Altman Z-Score of 3.06, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Penske Automotive Group's Altman Z-Score or its related term are showing as below:
FRA:UA9'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.21 Med: 3.09 Max: 3.49
Current: 3.06
During the past 13 years, Penske Automotive Group's highest Altman Z-Score was 3.49. The lowest was 2.21. And the median was 3.09.
Penske Automotive Group (FRA:UA9) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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: Altman Z-Score Comparison
For the Auto & Truck Dealerships subindustry, Penske Automotive Group's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Penske Automotive Group's Altman Z-Score falls into.
Penske Automotive Group Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Penske Automotive Group (FRA:UA9) has a Altman Z-Score of 3.06 as of Jul. 12, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Penske Automotive Group and its competitors. This is near median its historical median of 3.09. Over the past decade, Penske Automotive Group's Altman Z-Score has ranged from 2.21 to 3.49. According to the industry distribution chart, Penske Automotive Group ranks #523 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 39.8%.
Is Penske Automotive Group's Altman Z-Score too high?
Penske Automotive Group's current Altman Z-Score of 3.06 is near median its 10-year median of 3.09. Over the past 10 years, this metric has ranged from a low of 2.21 to a high of 3.49. The Vehicles & Parts industry median Altman Z-Score is 2.56. Penske Automotive Group's value of 3.06 is 19.5% above this industry median. Based on the distribution chart, Penske Automotive Group ranks #523 out of 1313 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Penske Automotive Group has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Penske Automotive Group's Altman Z-Score compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Penske Automotive Group ranks #523 out of 1313 companies for Altman Z-Score. This puts Penske Automotive Group in the upper half of its industry. The industry median Altman Z-Score is 2.56. Penske Automotive Group's value of 3.06 is 19.5% above this benchmark. Historically, Penske Automotive Group's own Altman Z-Score has ranged from 2.21 to 3.49 over the past decade. While the company's 10-year median is 3.09 vs. the industry median of 2.56, 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 Altman Z-Score for a Vehicles & Parts company?
The median Altman Z-Score among Vehicles & Parts companies is 2.56, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penske Automotive Group's current Altman Z-Score of 3.06 is 19.5% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Penske Automotive Group and its competitors. For the Vehicles & Parts industry, the median Altman Z-Score is 2.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penske Automotive Group's current Altman Z-Score is 3.06, which is near median its own 10-year median of 3.09. 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 Altman Z-Score of 3.06. The stock's GF Value™ is €146.28, compared to a current price of €170.00 — trading 16.2% above its estimated fair value. The current Altman Z-Score is 3.06, which is near median its 10-year median of 3.09 and 19.5% above the Vehicles & Parts industry median of 2.56. Penske Automotive Group's overall GF Score™ is 85/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Penske Automotive Group (FRA:UA9), the current Altman Z-Score is 3.06 as of Jul. 12, 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 €170.00 is trading 16.2% above its estimated GF Value™ of €146.28.
Key valuation signals for FRA:UA9:
Altman Z-Score: 3.06 (near median its 10-year median of 3.09)
GF Value™: €146.28 vs. price of €170.00 (16.2% above fair value)
Industry Position: 19.5% above the Vehicles & Parts median (#523 of 1313)
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.
85GF Score
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