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

1.2%

LAD

-1.2%

US Specialty Retail

-0.5%

US Market


1 Year Return

53.5%

LAD

-5.4%

US Specialty Retail

0.9%

US Market

LAD outperformed the Specialty Retail industry which returned -7.1% over the past year.

LAD outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

LADIndustryMarket
7 Day1.2%-1.2%-0.5%
30 Day3.2%3.9%4.8%
90 Day12.1%4.4%2.3%
1 Year55.3%53.5%-3.8%-5.4%3.1%0.9%
3 Year51.5%46.4%35.0%28.0%45.5%36.0%
5 Year78.4%69.4%52.2%38.6%62.5%44.7%

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 based on future cash flows and its price relative to the stock market?

11.37x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Lithia Motors's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Lithia Motors's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Lithia Motors is good value based on earnings compared to the US Specialty Retail industry average.

Lithia Motors is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Lithia Motors is poor value based on expected growth next year.


Price Based on Value of Assets

Lithia Motors is overvalued based on assets compared to the US Specialty Retail industry average.


Next Steps

Future Growth

How is Lithia Motors expected 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 Estimates


Future Annual Growth Analysis

Lithia Motors's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Lithia Motors's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

Lithia Motors's revenue growth is positive but not above the United States of America market average.

Lithia Motors's earnings growth is positive but not above the United States of America market average.

Lithia Motors's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Lithia Motors is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Lithia Motors's year on year earnings growth rate has been positive over the past 5 years.

Lithia Motors's 1-year earnings growth is less than its 5-year average (6.8% vs 15.7%)

Lithia Motors's earnings growth has not exceeded the US Specialty Retail industry average in the past year (6.8% vs 8.3%).


Return on Equity

Whilst Lithia Motors has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Lithia Motors used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Lithia Motors's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Lithia Motors's financial position?


Financial Position Analysis

Lithia Motors is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Lithia Motors's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Lithia Motors's level of debt (270.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (185.3% vs 270.1% today).

Debt is not well covered by operating cash flow (15.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

0.90%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Lithia Motors's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Lithia Motors's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Lithia Motors has been paying a dividend for less than 10 years.

Dividend payments have increased, but Lithia Motors only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (9.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (11.1x coverage).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Bryan DeBoer (53yo)

7.3yrs

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

Bryan's remuneration is about average for companies of similar size in United States of America.

Bryan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.4yrs

Average Tenure

56yo

Average Age

The tenure for the Lithia Motors management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

64yo

Average Age

The tenure for the Lithia Motors board of directors is about average.


Insider Trading

Lithia Motors individual 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: 7.3yrs
    • 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: 1.2yrs
  • George Liang (63yo)

    Senior Vice President of DCH Operations

    • Tenure: 4.1yrs
    • Compensation: US$955.74k
  • Tom Dobry

    Senior VP & Chief Marketing Officer

    • Tenure: 2.4yrs
  • Chris Holzshu (46yo)

    Executive VP & Secretary

    • Tenure: 8.8yrs
    • Compensation: US$2.21m
  • Scott Hillier (56yo)

    Senior VP of Operations

    • Tenure: 2.4yrs
    • Compensation: US$1.44m
  • David Stork (56yo)

    First Chief Legal Officer

    • Tenure: 0.7yrs
  • Tina Miller

    Senior VP & CFO

    • Tenure: 0.5yrs
  • Eric Pitt

    VP of Investor Relations & Treasurer

    • Tenure: 0yrs

Board Members

  • David Robino (59yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$240.10k
  • Bryan DeBoer (53yo)

    CEO, President & Director

    • Tenure: 7.3yrs
    • Compensation: US$5.46m
  • Sid DeBoer (76yo)

    Founder & Chairman

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

    Director

    • Tenure: 7.4yrs
    • Compensation: US$248.29k
  • Susan Cain (65yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$244.16k
  • Lou Miramontes (64yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$196.76k
  • Shauna Mcintyre (47yo)

    Director

    • Tenure: 0.4yrs

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$3.042b
  • 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. 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 23:40
End of Day Share Price2019/09/23 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.