Is PENSKE AUTOMOTIVE GROUP, INC. (PAG) Halal?

NYSE Consumer Cyclical United States $9.8B
✗ NOT HALAL
Confidence: 83/100
PENSKE AUTOMOTIVE GROUP, INC. (PAG) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 79.9% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. PENSKE AUTOMOTIVE GROUP, INC. operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 79.9%
/ 30%
0.7%
/ 30%
9.7%
/ 30%
N/A ✗ NOT HALAL
DJIM 79.9%
/ 33%
0.7%
/ 33%
9.7%
/ 33%
N/A ✗ NOT HALAL
MSCI 49.5%
/ 33%
0.4%
/ 33%
6.0%
/ 33%
N/A ✗ NOT HALAL
S&P 79.9%
/ 33%
0.7%
/ 33%
9.7%
/ 33%
N/A ✗ NOT HALAL
FTSE 49.5%
/ 33%
0.4%
/ 33%
6.0%
/ 50%
N/A ✗ NOT HALAL

Financial Highlights

P/E Ratio
10.5
Forward: 10.3
EPS
$14.13
Dividend Yield
377.0%
Payout: 36.7%
P/B Ratio
1.8
EV/EBITDA
12.7
EV: $18.5B
Revenue
$31.8B
Growth: -3.1%
Beta
0.9
Average volatility
Current Ratio
1.0

Profitability

Gross Margin 16.4%
Operating Margin 3.4%
Net Margin 2.9%
Return on Equity (ROE) 17.1%
Return on Assets (ROA) 4.6%

Cash Flow & Balance Sheet

Operating Cash Flow$975M
Free Cash Flow$650M
Total Debt$8.7B
Debt-to-Equity158.1
Current Ratio1.0
Total Assets$17.6B

Price & Trading

Last Close$148.89
50-Day MA$157.94
200-Day MA$167.63
Avg Volume303K
Beta0.9
52-Week Range
$134.05
$189.51

About PENSKE AUTOMOTIVE GROUP, INC. (PAG)

CEO
Mr. Roger S. Penske Sr.
Employees
27,700
Sector
Consumer Cyclical
Industry
Auto & Truck Dealerships
Country
United States
Exchange
NYSE
Market Cap
$9.8B
Currency
USD

Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships in the United States, the United Kingdom, Germany, Italy, Japan, Canada, Australia, New Zealand, and internationally. It operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. The company operates franchise dealerships under franchise agreements with various automotive manufacturers and distributors. It is also involved in the sale of new and used vehicles, maintenance and repair services, sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, collision repair services, and wholesale of parts. In addition, the company operates a heavy and medium duty truck dealership, which offers Freightliner and Western Star branded trucks, as well as offers a range of used trucks. Further, it imports and distributes Western Star heavy-duty trucks, MAN heavy and medium duty trucks and buses, and Dennis Eagle refuse collection vehicles with associated parts, as well as distributes diesel and gas engines, and power systems. Penske Automotive Group, Inc. was incorporated in 1990 and is headquartered in Bloomfield Hills, Michigan.

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Frequently Asked Questions

Is PENSKE AUTOMOTIVE GROUP, INC. (PAG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), PENSKE AUTOMOTIVE GROUP, INC. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is PENSKE AUTOMOTIVE GROUP, INC.'s debt ratio?

PENSKE AUTOMOTIVE GROUP, INC.'s debt ratio is 79.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 49.5%.

What are PENSKE AUTOMOTIVE GROUP, INC.'s key financial metrics?

PENSKE AUTOMOTIVE GROUP, INC. has a market capitalization of $9.8B, trailing P/E ratio of 10.5, and revenue of $31.8B. The company maintains a gross margin of 16.4% and a net margin of 2.9%. Return on equity stands at 17.1%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.