Lithia Motors, Inc. operates as an automotive retailer in the United States. More Details
Undervalued with high growth potential.
Share Price & News
How has Lithia Motors's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LAD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: LAD's weekly volatility (6%) has been stable over the past year.
7 Day Return
US Specialty Retail
1 Year Return
US Specialty Retail
Return vs Industry: LAD exceeded the US Specialty Retail industry which returned 110.4% over the past year.
Return vs Market: LAD exceeded the US Market which returned 52.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Lithia Motors's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 hours ago | Simply Wall StLithia Motors, Inc. (NYSE:LAD) Has A ROE Of 21%
1 week ago | Simply Wall StWe Take A Look At Why Lithia Motors, Inc.'s (NYSE:LAD) CEO Has Earned Their Pay Packet
3 weeks ago | Simply Wall StShould You Investigate Lithia Motors, Inc. (NYSE:LAD) At US$388?
Is Lithia Motors undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LAD ($380.32) is trading below our estimate of fair value ($906.7)
Significantly Below Fair Value: LAD is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LAD is good value based on its PE Ratio (16.2x) compared to the US Specialty Retail industry average (16.8x).
PE vs Market: LAD is good value based on its PE Ratio (16.2x) compared to the US market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: LAD is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: LAD is overvalued based on its PB Ratio (3.6x) compared to the US Specialty Retail industry average (3.3x).
How is Lithia Motors forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LAD's forecast earnings growth (21.9% per year) is above the savings rate (2%).
Earnings vs Market: LAD's earnings (21.9% per year) are forecast to grow faster than the US market (15.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LAD's revenue (22% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: LAD's revenue (22% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LAD's Return on Equity is forecast to be low in 3 years time (17.5%).
How has Lithia Motors performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LAD has high quality earnings.
Growing Profit Margin: LAD's current net profit margins (4%) are higher than last year (2.1%).
Past Earnings Growth Analysis
Earnings Trend: LAD's earnings have grown by 17.9% per year over the past 5 years.
Accelerating Growth: LAD's earnings growth over the past year (122.1%) exceeds its 5-year average (17.9% per year).
Earnings vs Industry: LAD earnings growth over the past year (122.1%) exceeded the Specialty Retail industry 47.4%.
Return on Equity
High ROE: Whilst LAD's Return on Equity (20.67%) is high, this metric is skewed due to their high level of debt.
How is Lithia Motors's financial position?
Financial Position Analysis
Short Term Liabilities: LAD's short term assets ($3.3B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: LAD's short term assets ($3.3B) exceed its long term liabilities ($2.8B).
Debt to Equity History and Analysis
Debt Level: LAD's debt to equity ratio (132.9%) is considered high.
Reducing Debt: LAD's debt to equity ratio has reduced from 243.3% to 132.9% over the past 5 years.
Debt Coverage: LAD's debt is well covered by operating cash flow (24.6%).
Interest Coverage: LAD's interest payments on its debt are well covered by EBIT (8x coverage).
What is Lithia Motors's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LAD's dividend (0.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: LAD's dividend (0.37%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: LAD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: LAD is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: LAD is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LAD's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Bryan DeBoer (54 yo)
Mr. Bryan B. DeBoer has been the Chief Executive Officer and President of Lithia Motors Inc, since May 1, 2012 and January 9, 2006 respectively. Mr. DeBoer served as the Chief Operating Officer of Lithia M...
CEO Compensation Analysis
Compensation vs Market: Bryan's total compensation ($USD8.25M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Bryan's compensation has been consistent with company performance over the past year.
Experienced Management: LAD's management team is considered experienced (3.1 years average tenure).
Experienced Board: LAD's board of directors are considered experienced (7.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LAD insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.1%.
Lithia Motors, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Lithia Motors, Inc.
- Ticker: LAD
- Exchange: NYSE
- Founded: 1946
- Industry: Automotive Retail
- Sector: Retail
- Market Cap: US$10.159b
- Shares outstanding: 26.65m
- Website: https://www.lithiainvestorrelations.com
Number of Employees
- Lithia Motors, Inc.
- 150 North Bartlett Street
- United States
Lithia Motors, Inc. operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Luxury. It offers new and used vehicles; vehicle financing se...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/06 23:18|
|End of Day Share Price||2021/05/06 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.