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LAD

Lithia MotorsNYSE:LAD Stock Report

Last Price

US$310.25

Market Cap

US$9.4b

7D

4.2%

1Y

1.0%

Updated

18 Jan, 2022

Data

Company Financials +
LAD fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance6/6
Financial Health4/6
Dividends0/6

LAD Stock Overview

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

Lithia Motors Competitors

O'Reilly Automotive

NasdaqGS:ORLY

US$45.7b

AutoZone

NYSE:AZO

US$42.0b

Carvana

NYSE:CVNA

US$27.6b

Advance Auto Parts

NYSE:AAP

US$14.8b

Price History & Performance

Summary of all time highs, changes and price drops for Lithia Motors
Historical stock prices
Current Share PriceUS$310.25
52 Week HighUS$417.98
52 Week LowUS$274.03
Beta1.67
1 Month Change8.38%
3 Month Change-9.29%
1 Year Change1.03%
3 Year Change260.38%
5 Year Change204.11%
Change since IPO2,688.76%

Recent News & Updates

Dec 18
Lithia Motors (NYSE:LAD) Has A Pretty Healthy Balance Sheet

Lithia Motors (NYSE:LAD) Has A Pretty Healthy Balance Sheet

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

LADUS Specialty RetailUS Market
7D4.2%-3.1%-0.3%
1Y1.0%-0.3%13.7%

Return vs Industry: LAD matched the US Specialty Retail industry which returned -0.3% over the past year.

Return vs Market: LAD underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is LAD's price volatile compared to industry and market?
LAD volatility
LAD Average Weekly Movement4.6%
Specialty Retail Industry Average Movement7.3%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: LAD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LAD's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194614,538Bryan DeBoerhttps://www.lithiainvestorrelations.com

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 services; warranties, insurance contracts, and vehicle and theft protection services; and automotive repair and maintenance services, as well as sells vehicle body and parts.

Lithia Motors Fundamentals Summary

How do Lithia Motors's earnings and revenue compare to its market cap?
LAD fundamental statistics
Market CapUS$9.39b
Earnings (TTM)US$956.60m
Revenue (TTM)US$20.46b

9.8x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAD income statement (TTM)
RevenueUS$20.46b
Cost of RevenueUS$16.80b
Gross ProfitUS$3.66b
ExpensesUS$2.71b
EarningsUS$956.60m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)31.59
Gross Margin17.90%
Net Profit Margin4.67%
Debt/Equity Ratio82.2%

How did LAD perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

4%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAD ($306.98) is trading below our estimate of fair value ($887)

Significantly Below Fair Value: LAD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LAD is poor value based on its PE Ratio (9.7x) compared to the US Specialty Retail industry average (8.6x).

PE vs Market: LAD is good value based on its PE Ratio (9.7x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: LAD is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: LAD is good value based on its PB Ratio (2x) compared to the US Specialty Retail industry average (2.7x).


Future Growth

How is Lithia Motors forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAD's forecast earnings growth (8.5% per year) is above the savings rate (2%).

Earnings vs Market: LAD's earnings (8.5% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: LAD's revenue (19.3% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: LAD's revenue (19.3% 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 low in 3 years time (16.6%).


Past Performance

How has Lithia Motors performed over the past 5 years?

29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAD has high quality earnings.

Growing Profit Margin: LAD's current net profit margins (4.7%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: LAD's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: LAD's earnings growth over the past year (172.8%) exceeds its 5-year average (29.2% per year).

Earnings vs Industry: LAD earnings growth over the past year (172.8%) exceeded the Specialty Retail industry 151.5%.


Return on Equity

High ROE: LAD's Return on Equity (20.9%) is considered high.


Financial Health

How is Lithia Motors's financial position?


Financial Position Analysis

Short Term Liabilities: LAD's short term assets ($3.1B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: LAD's short term assets ($3.1B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: LAD's net debt to equity ratio (79.2%) is considered high.

Reducing Debt: LAD's debt to equity ratio has reduced from 251.8% to 82.2% over the past 5 years.

Debt Coverage: LAD's debt is well covered by operating cash flow (46%).

Interest Coverage: LAD's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet


Dividend

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

0.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LAD's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: LAD's dividend (0.46%) is low compared to the top 25% of dividend payers in the US market (3.44%).


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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Bryan DeBoer (55 yo)

16yrs

Tenure

US$8,250,411

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 ($USD8.25M) is about average for companies of similar size in the US market ($USD6.40M).

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


Leadership Team

Experienced Management: LAD's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: LAD's board of directors are considered experienced (9.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LAD insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Lithia Motors, Inc.
  • Ticker: LAD
  • Exchange: NYSE
  • Founded: 1946
  • Industry: Automotive Retail
  • Sector: Retail
  • Implied Market Cap: US$9.394b
  • Shares outstanding: 30.28m
  • Website: https://www.lithiainvestorrelations.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/18 23:53
End of Day Share Price2022/01/18 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.