NYSE:LAD

Stock Analysis Report

Executive Summary

Lithia Motors, Inc. operates as an automotive retailer in the United States.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Lithia Motors's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

LAD

1.5%

US Specialty Retail

0.5%

US Market


1 Year Return

76.4%

LAD

7.6%

US Specialty Retail

6.8%

US Market

Return vs Industry: LAD exceeded the US Specialty Retail industry which returned 7.6% over the past year.

Return vs Market: LAD exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

LADIndustryMarket
7 Day3.2%1.5%0.5%
30 Day0.2%4.8%-0.8%
90 Day12.2%4.5%-0.9%
1 Year78.5%76.4%9.4%7.6%9.2%6.8%
3 Year52.5%47.3%42.6%35.3%45.6%36.2%
5 Year86.2%76.8%57.5%43.6%63.2%45.4%

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

Valuation

Is Lithia Motors undervalued compared to its fair value and its price relative to the market?

11.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LAD ($130.39) is trading above our estimate of fair value ($104.61)

Significantly Below Fair Value: LAD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LAD is good value based on its PE Ratio (11.3x) compared to the Specialty Retail industry average (15.4x).

PE vs Market: LAD is good value based on its PE Ratio (11.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: LAD is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: LAD is overvalued based on its PB Ratio (2.4x) compared to the US Specialty Retail industry average (1.4x).


Next Steps

Future Growth

How is Lithia Motors forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAD's forecast earnings growth (3.9% per year) is above the savings rate (2.7%).

Earnings vs Market: LAD's earnings (3.9% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: LAD's earnings are forecast to grow, but not significantly.

Revenue vs Market: LAD's revenue (3.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: LAD's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LAD's Return on Equity is forecast to be high in 3 years time (21.3%)


Next Steps

Past Performance

How has Lithia Motors performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LAD's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: LAD's earnings growth over the past year (6.8%) is below its 5-year average (15.7% per year).

Earnings vs Industry: LAD earnings growth over the past year (6.8%) underperformed the Specialty Retail industry 8.3%.


Return on Equity

High ROE: Whilst LAD's Return on Equity (21.28%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: LAD has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: LAD's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lithia Motors's financial position?


Financial Position Analysis

Short Term Liabilities: LAD's short term assets ($3.0B) exceeds its short term liabilities ($2.6B)

Long Term Liabilities: LAD's short term assets (3.0B) exceeds its long term liabilities (1.9B)


Debt to Equity History and Analysis

Debt Level: LAD's debt to equity ratio (270.1%) is considered high

Reducing Debt: LAD's debt to equity ratio has increased from 185.3% to 270.1% over the past 5 years.

Debt Coverage: LAD's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: LAD's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

Inventory Level: LAD has a high level of physical assets or inventory.

Debt Coverage by Assets: LAD's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Lithia Motors's current dividend yield, its reliability and sustainability?

0.92%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LAD's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LAD's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: Whilst dividend payments have been stable, LAD has been paying a dividend for less than 10 years.

Growing Dividend: LAD's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.2%), LAD's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LAD's dividends in 3 years are forecast to be thoroughly covered by earnings (9.3% payout ratio).


Next Steps

Management

What is the CEO of Lithia Motors's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Bryan DeBoer (53yo)

7.4yrs

Tenure

US$5,464,394

Compensation

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 ($USD5.46M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Bryan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.5yrs

Average Tenure

56yo

Average Age

Experienced Management: LAD's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

65yo

Average Age

Experienced Board: LAD's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: LAD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$656,36005 Sep 19
Kenneth Roberts
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$132.50
SellUS$59,10314 Aug 19
Louis Miramontes
EntityIndividual
Role
Member of the Board of Directors
Director
Shares450
Max PriceUS$131.34
SellUS$97,44331 Jul 19
Susan Cain
EntityIndividual
Role
Member of the Board of Directors
Director
Shares723
Max PriceUS$134.78
SellUS$1,759,36206 May 19
Sidney DeBoer
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares15,433
Max PriceUS$114.00
SellUS$2,523,79928 Feb 19
Bryan DeBoer
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares28,095
Max PriceUS$89.83
SellUS$345,15027 Feb 19
Bryan DeBoer
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares3,835
Max PriceUS$90.00
SellUS$127,41119 Feb 19
Susan Cain
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,462
Max PriceUS$87.15

Ownership Breakdown


Management Team

  • Bryan DeBoer (53yo)

    CEO, President & Director

    • Tenure: 7.4yrs
    • Compensation: US$5.46m
  • Sid DeBoer (76yo)

    Founder & Chairman

    • Tenure: 3.8yrs
    • Compensation: US$247.88k
  • George Hines (46yo)

    Senior VP & Chief Technology and Innovation Officer

    • Tenure: 1.3yrs
  • George Liang (63yo)

    Senior Vice President of DCH Operations

    • Tenure: 4.2yrs
    • Compensation: US$955.74k
  • Tom Dobry

    Senior VP & Chief Marketing Officer

    • Tenure: 2.5yrs
  • Chris Holzshu (46yo)

    Executive VP & Secretary

    • Tenure: 7.5yrs
    • Compensation: US$2.21m
  • Scott Hillier (56yo)

    Senior VP of Operations

    • Tenure: 2.5yrs
    • Compensation: US$1.44m
  • David Stork (56yo)

    First Chief Legal Officer

    • Tenure: 0.8yrs
  • Tina Miller

    Senior VP & CFO

    • Tenure: 0.6yrs
  • Eric Pitt

    VP of Investor Relations & Treasurer

    • Tenure: 0yrs

Board Members

  • David Robino (59yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$240.10k
  • Bryan DeBoer (53yo)

    CEO, President & Director

    • Tenure: 7.4yrs
    • Compensation: US$5.46m
  • Sid DeBoer (76yo)

    Founder & Chairman

    • Tenure: 3.8yrs
    • Compensation: US$247.88k
  • Ken Roberts (75yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$248.29k
  • Susan Cain (65yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$244.16k
  • Lou Miramontes (65yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$196.76k
  • Shauna Mcintyre (47yo)

    Director

    • Tenure: 0.5yrs

Company Information

Lithia Motors, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lithia Motors, Inc.
  • Ticker: LAD
  • Exchange: NYSE
  • Founded: 1946
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$3.027b
  • Shares outstanding: 23.22m
  • Website: https://www.lithiainvestorrelations.com

Number of Employees


Location

  • Lithia Motors, Inc.
  • 150 North Bartlett Street
  • Medford
  • Oregon
  • 97501
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LADNYSE (New York Stock Exchange)YesClass A Common StockUSUSDDec 1996
LMODB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 1996

Biography

Lithia Motors, Inc. operates as an automotive retailer in the United States. It offers new and used vehicles; vehicle financing services; warranties, insurance contracts, and vehicle and theft protection s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:40
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.