NYSE:LAD

Stock Analysis Report

Executive Summary

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


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

LADIndustryMarket
7 Day-0.8%1.1%0.7%
30 Day-1.0%3.1%1.5%
90 Day16.1%6.2%5.0%
1 Year124.8%122.5%27.9%25.8%20.8%18.2%
3 Year66.4%60.9%36.4%29.3%45.2%35.8%
5 Year99.3%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

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

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0.8%

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

SellUS$61,91712 Nov 19
Susan Cain
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares381
Max PriceUS$162.51
SellUS$3,207,36012 Nov 19
Sidney DeBoer
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares20,046
Max PriceUS$160.00
SellUS$282,34005 Nov 19
Kenneth Roberts
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,758
Max PriceUS$160.63
SellUS$59,31229 Oct 19
Susan Cain
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares381
Max PriceUS$155.67
SellUS$2,280,00028 Oct 19
Sidney DeBoer
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares15,000
Max PriceUS$152.00
SellUS$11,269,09024 Oct 19
Abrams Capital Management LP
EntityCompany
Shares73,933
Max PriceUS$152.42
SellUS$656,36005 Sep 19
Kenneth Roberts
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$132.50
SellUS$59,10314 Aug 19
Louis Miramontes
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares450
Max PriceUS$131.34
SellUS$97,44331 Jul 19
Susan Cain
EntityIndividual
Role
Member of the Board of Directors
Independent 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
Independent Director
Shares1,462
Max PriceUS$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

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 Analysis2019/12/09 23:39
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
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.