Lithia Motors
Market Cap
US$3.7b
Last Updated
2019/12/09 23:39 UTC
Data Sources
Company Financials +
Executive Summary
Lithia Motors, Inc. operates as an automotive retailer in the United States.
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: LAD has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.8%
LAD
1.1%
US Specialty Retail
0.7%
US Market
1 Year Return
122.5%
LAD
25.8%
US Specialty Retail
18.2%
US Market
Return vs Industry: LAD exceeded the US Specialty Retail industry which returned 25.8% over the past year.
Return vs Market: LAD exceeded the US Market which returned 18.2% over the past year.
Shareholder returns
| LAD | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 1.1% | 0.7% |
| 30 Day | -1.0% | 3.1% | 1.5% |
| 90 Day | 16.1% | 6.2% | 5.0% |
| 1 Year | 124.8%122.5% | 27.9%25.8% | 20.8%18.2% |
| 3 Year | 66.4%60.9% | 36.4%29.3% | 45.2%35.8% |
| 5 Year | 99.3%89.2% | 49.9%37.2% | 71.6%52.7% |
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
1 week ago | Simply Wall St
Is Now The Time To Look At Buying Lithia Motors, Inc. (NYSE:LAD)?3 weeks ago | Simply Wall St
Introducing Lithia Motors (NYSE:LAD), The Stock That Zoomed 117% In The Last Five Years1 month ago | Simply Wall St
Is Lithia Motors, Inc. (NYSE:LAD) Worth US$157 Based On Its Intrinsic Value?Valuation
Is Lithia Motors undervalued compared to its fair value and its price relative to the market?
13.97x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LAD ($158.05) is trading above our estimate of fair value ($142.16)
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 (14x) compared to the Specialty Retail industry average (16.5x).
PE vs Market: LAD is good value based on its PE Ratio (14x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: LAD is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: LAD is overvalued based on its PB Ratio (2.7x) compared to the US Specialty Retail industry average (1.5x).
Next Steps
Future Growth
How is Lithia Motors forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
6.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LAD's forecast earnings growth (6.6% per year) is above the savings rate (1.7%).
Earnings vs Market: LAD's earnings (6.6% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: LAD's earnings are forecast to grow, but not significantly.
Revenue vs Market: LAD's revenue (3.9% per year) is forecast to grow slower than the US market (7.4% per year).
High Growth Revenue: LAD's revenue (3.9% 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?
14.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LAD has high quality earnings.
Growing Profit Margin: LAD's current net profit margins (2.1%) are lower than last year (2.6%).
Past Earnings Growth Analysis
Earnings Trend: LAD's earnings have grown by 14.4% per year over the past 5 years.
Accelerating Growth: LAD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LAD had negative earnings growth (-10.8%) over the past year, making it difficult to compare to the Specialty Retail industry average (3.8%).
Return on Equity
High ROE: LAD's Return on Equity (19.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Lithia Motors's financial position?
Financial Position Analysis
Short Term Liabilities: LAD's short term assets ($2.9B) exceed its short term liabilities ($2.5B).
Long Term Liabilities: LAD's short term assets ($2.9B) exceed its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: LAD's debt to equity ratio (241.7%) is considered high.
Reducing Debt: LAD's debt to equity ratio has increased from 163.8% to 241.7% over the past 5 years.
Debt Coverage: LAD's debt is not well covered by operating cash flow (18.1%).
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?
0.76%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: LAD's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: LAD's dividend (0.76%) is low compared to the top 25% of dividend payers in the US market (3.7%).
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
What is the CEO of Lithia Motors's salary, the management and board of directors tenure and is there insider trading?
2.0yrs
Average management tenure
CEO
Bryan DeBoer (53yo)
7.6yrs
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 ($USD5.09M).
Compensation vs Earnings: Bryan's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.0yrs
Average Tenure
56yo
Average Age
Experienced Management: LAD's management team is considered experienced (2 years average tenure).
Board Age and Tenure
5.8yrs
Average Tenure
65yo
Average Age
Experienced Board: LAD's board of directors are considered experienced (5.8 years average tenure).
Insider Trading
Insider Buying: LAD insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 381 |
| Max Price | US$162.51 |
| Entity | Individual |
| Role | Chairman of the Board Founder & Chairman |
| Shares | 20,046 |
| Max Price | US$160.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,758 |
| Max Price | US$160.63 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 381 |
| Max Price | US$155.67 |
| Entity | Individual |
| Role | Chairman of the Board Founder & Chairman |
| Shares | 15,000 |
| Max Price | US$152.00 |
| Entity | Company |
| Shares | 73,933 |
| Max Price | US$152.42 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$132.50 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 450 |
| Max Price | US$131.34 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 723 |
| Max Price | US$134.78 |
| Entity | Individual |
| Role | Chairman of the Board Founder & Chairman |
| Shares | 15,433 |
| Max Price | US$114.00 |
| Entity | Individual |
| Role | Chief Executive Officer CEO, President & Director |
| Shares | 28,095 |
| Max Price | US$89.83 |
| Entity | Individual |
| Role | Chief Executive Officer CEO, President & Director |
| Shares | 3,835 |
| Max Price | US$90.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,462 |
| Max Price | US$87.15 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Bryan DeBoer (53yo)
CEO, President & Director
- Tenure: 7.6yrs
- Compensation: US$5.46m
Sid DeBoer (76yo)
Founder & Chairman
- Tenure: 4yrs
- Compensation: US$247.88k
George Hines (46yo)
Senior VP & Chief Technology and Innovation Officer
- Tenure: 1.4yrs
George Liang (63yo)
Senior Vice President of DCH Operations
- Tenure: 4.3yrs
- Compensation: US$955.74k
Tom Dobry
Senior VP & Chief Marketing Officer
- Tenure: 2.7yrs
Chris Holzshu (46yo)
COO & Secretary
- Tenure: 0.08yrs
- Compensation: US$2.21m
Scott Hillier (56yo)
Senior Vice President of Operations
- Tenure: 2.7yrs
- Compensation: US$1.44m
David Stork (56yo)
Chief Legal Officer
- Tenure: 0.9yrs
Tina Miller
Senior VP & CFO
- Tenure: 0.8yrs
Eric Pitt
VP of Investor Relations & Treasurer
- Tenure: 0yrs
Board Members
David Robino (59yo)
Independent Director
- Tenure: 3.8yrs
- Compensation: US$240.10k
Bryan DeBoer (53yo)
CEO, President & Director
- Tenure: 7.6yrs
- Compensation: US$5.46m
Sid DeBoer (76yo)
Founder & Chairman
- Tenure: 4yrs
- Compensation: US$247.88k
Ken Roberts (75yo)
Independent Director
- Tenure: 7.7yrs
- Compensation: US$248.29k
Susan Cain (65yo)
Independent Director
- Tenure: 10.5yrs
- Compensation: US$244.16k
Lou Miramontes (65yo)
Lead Independent Director
- Tenure: 0yrs
- Compensation: US$196.76k
Shauna Mcintyre (47yo)
Independent Director
- Tenure: 0.7yrs
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$3.674b
- Shares outstanding: 23.24m
- Website: https://www.lithiainvestorrelations.com
Number of Employees
Location
- Lithia Motors, Inc.
- 150 North Bartlett Street
- Medford
- Oregon
- 97501
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LAD | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Dec 1996 |
| LMO | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/09 23:39 |
| End of Day Share Price | 2019/12/09 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.