Yes, Buffett acquired an auto dealer. He still owns
shares of car manufacturer General Motors and adds a fully business from the
distribution site. The company named Van Tuyl Group and generated sales of just under USD 8 billion.
Van Tuyl Group says it is the biggest
privately owned auto dealership group in the U.S. It has 78 independently
operated dealerships and more than 100 franchises in 10 states. The company
will be renamed Berkshire Hathaway Automotive and be based in Dallas.
The deal
comes amid ongoing consolidation in the industry. Publicly traded giants, including
Florida-based AutoNation and Oregon-based Lithia Motors have been snapping up
smaller retail chains, often run by families who have been selling cars for
generations.
It also could be possible that Buffett buys the Van Tuyl Group in order to create a new channel to sell auto insurance policies.
I've also had some of my eyes on auto parts
and car dealers in the past. The main problem was for me that they have no good
diversification abroad. Most companies generate revenues in the United States
but they have shown strong growth.
Below are five dividend paying
alternatives from the auto dealership industry. Most of the industry members
pay no dividends but for nearly all, double-digit earnings growth is predicted. If you like to follow my stories, please subscribe my blog news.
5 dividend paying auto dealers are..
Penske Automotive (NYSE:PAG) has a market capitalization of $3.79 billion. The company employs 18,000 people, generates revenue of $14.705 billion and has a net income of $251.10 million. Penske Automotive’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $497.90 million. The EBITDA margin is 3.39 percent (the operating margin is 2.97 percent and the net profit margin 1.71 percent).
Penske Automotive (NYSE:PAG) has a market capitalization of $3.79 billion. The company employs 18,000 people, generates revenue of $14.705 billion and has a net income of $251.10 million. Penske Automotive’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $497.90 million. The EBITDA margin is 3.39 percent (the operating margin is 2.97 percent and the net profit margin 1.71 percent).
Financial Analysis: The total debt represents 57.20 percent of Penske Automotive’s assets and the total debt in relation to the equity amounts to 243.94 percent. Due to the financial situation, a return on equity of 17.77 percent was realized by Penske Automotive. Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, Penske Automotive paid $0.62 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.79, the P/S ratio is 0.25 and the P/B ratio is finally 2.46. The dividend yield amounts to 1.95 percent and the beta ratio has a value of 1.77.
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| Long-Term Stock Price Chart Of Penske Automotive (PAG) |
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| Long-Term Dividend Payment History of Penske Automotive (PAG) |
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| Long-Term Dividend Yield History of Penske Automotive (PAG) |
Group 1 Automotive (NYSE:GPI) has a market capitalization of $1.77 billion. The company employs 12,000 people, generates revenue of $8.918 billion and has a net income of $113.99 million. Group 1 Automotive’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $315.69 million. The EBITDA margin is 3.54 percent (the operating margin is 3.06 percent and the net profit margin 1.28 percent).
Financial Analysis: The total debt represents 56.62 percent of Group 1 Automotive’s assets and the total debt in relation to the equity amounts to 208.90 percent. Due to the financial situation, a return on equity of 11.50 percent was realized by Group 1 Automotive. Twelve trailing months earnings per share reached a value of $3.78. Last fiscal year, Group 1 Automotive paid $0.65 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.28, the P/S ratio is 0.20 and the P/B ratio is finally 1.71. The dividend yield amounts to 0.93 percent and the beta ratio has a value of 1.55.
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| Long-Term Stock Price Chart Of Group 1 Automotive (GPI) |
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| Long-Term Dividend Payment History of Group 1 Automotive (GPI) |
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| Long-Term Dividend Yield History of Group 1 Automotive (GPI) |
Lithia Motors (NYSE:LAD) has a market capitalization of $2.13 billion. The company employs 5,700 people, generates revenue of $4.005 billion and has a net income of $105.21 million. Lithia Motors earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $206.08 million. The EBITDA margin is 5.14 percent (the operating margin is 4.58 percent and the net profit margin 2.63 percent).
Financial Analysis: The total debt represents 56.02 percent of Lithia Motors assets and the total debt in relation to the equity amounts to 180.73 percent. Due to the financial situation, a return on equity of 21.86 percent was realized by Lithia Motors. Twelve trailing months earnings per share reached a value of $4.48. Last fiscal year, Lithia Motors paid $0.39 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.16, the P/S ratio is 0.53 and the P/B ratio is finally 3.91. The dividend yield amounts to 0.79 percent and the beta ratio has a value of 2.11.
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| Long-Term Stock Price Chart Of Lithia Motors (LAD) |
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| Long-Term Dividend Payment History of Lithia Motors (LAD) |
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| Long-Term Dividend Yield History of Lithia Motors (LAD) |
Sonic Automotive (NYSE:SAH) has a market capitalization of $1.32 billion. The company employs 9,100 people, generates revenue of $8.843 billion and has a net income of $84.68 million. Sonic Automotive’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $300.08 million. The EBITDA margin is 3.39 percent (the operating margin is 2.33 percent and the net profit margin 0.96 percent).
Financial Analysis: The total debt represents 65.55 percent of Sonic Automotive’s assets and the total debt in relation to the equity amounts to 325.94 percent. Due to the financial situation, a return on equity of 14.75 percent was realized by Sonic Automotive. Twelve trailing months earnings per share reached a value of $1.90. Last fiscal year, Sonic Automotive paid $0.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.13, the P/S ratio is 0.15 and the P/B ratio is finally 2.12. The dividend yield amounts to 0.41 percent and the beta ratio has a value of 1.73.
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| Long-Term Stock Price Chart Of Sonic Automotive (SAH) |
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| Long-Term Dividend Payment History of Sonic Automotive (SAH) |
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| Long-Term Dividend Yield History of Sonic Automotive (SAH) |
Advance Auto Parts (NYSE:AAP) has a market capitalization of $9.71 billion. The company employs 41,238 people, generates revenue of $6.493 billion and has a net income of $391.76 million. Advance Auto Parts’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $868.11 million. The EBITDA margin is 13.37 percent (the operating margin is 10.17 percent and the net profit margin 6.03 percent).
Financial Analysis: The total debt represents 18.93 percent of Advance Auto Parts’s assets and the total debt in relation to the equity amounts to 69.49 percent. Due to the financial situation, a return on equity of 28.67 percent was realized by Advance Auto Parts. Twelve trailing months earnings per share reached a value of $5.99. Last fiscal year, Advance Auto Parts paid $0.24 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.22, the P/S ratio is 1.49 and the P/B ratio is finally 6.39. The dividend yield amounts to 0.18 percent and the beta ratio has a value of 0.67.
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| Long-Term Stock Price Chart Of Advance Auto Parts (AAP) |
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| Long-Term Dividend Payment History of Advance Auto Parts (AAP) |
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| Long-Term Dividend Yield History of Advance Auto Parts (AAP) |
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A complete overview about stock market listed auto dealers....
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| 13 Auto Dealer Stocks, Researched By long-term-investments.blogspot.com |
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| 5-Year Auto Dealer Dividend Stock Performance, Researched By long-term-investments.blogspot.com |
What do you think about the mentioned companies? Would you buy some of them or do you still own a few shares of the auto dealers? Please let me know. Thank you for reading and your comments.
If you like this story, you may be interested in these stocks: 5 Top Dividend Stocks With No Debt But High Cash On Balance Sheet
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*I have no positions in any stocks mentioned, and no plans to initiate any
positions within the next 72 hours. I receive no compensation to write about
any specific stock, sector or theme.