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Lithia Motors Inc
NYSE:LAD

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Lithia Motors Inc Logo
Lithia Motors Inc
NYSE:LAD
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Price: 283.66 USD 0.6% Market Closed
Updated: Mar 19, 2024

Intrinsic Value

Lithia Motors, Inc. engages in the operation of automotive franchises and retail of new and used vehicles. [ Read More ]

The intrinsic value of one LAD stock under the Base Case scenario is 404.53 USD. Compared to the current market price of 283.66 USD, Lithia Motors Inc is Undervalued by 30%.

Key Points:
LAD Intrinsic Value
Base Case
404.53 USD
Undervaluation 30%
Intrinsic Value
Price
Base Case Scenario

Valuation Backtest
Lithia Motors Inc

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Fundamental Analysis

Lithia & Driveway's Strategic Growth and Efficiency
2023-Q4 Earnings Call

Lithia & Driveway's Strategic Growth and Efficiency

Lithia & Driveway reported an 11% year-over-year increase in Q4 revenues, reaching $7.7 billion, and an annual revenue exceeding $31 billion for 2023. Growth was fueled by a 10% increase in new vehicle sales and a 3% rise in aftersales revenues, despite a decrease in new vehicle gross profit per unit (GPU). Driveway Finance Corporation (DFC) showed progress with a smaller-than-expected loss of $2.1 million and receivables growing to $3.2 billion. The company is poised for 2024 with the acquisition of Pendragon, adding $4 billion in revenue and 160 U.K. stores. Focus is on enhancing margins, expanding market share towards a target of 5%, and a revenue-to-EPS ratio of 2:1. Digital channels saw substantial growth, with digital transactions up 27% and sustainable vehicle sales increasing to 16% of new vehicles. The company balances acquisitions and share repurchases, projecting $2 to $4 billion in annual acquisitions, targeting a near-term revenue goal of $50 billion.

Financials

Balance Sheet Decomposition
Lithia Motors Inc

Current Assets 7B
Cash & Short-Term Investments 825m
Receivables 1.1B
Other Current Assets 5B
Non-Current Assets 12.7B
PP&E 4.5B
Intangibles 4.3B
Other Non-Current Assets 3.9B
Current Liabilities 4.9B
Accounts Payable 288m
Accrued Liabilities 899.1m
Short-Term Debt 3.6B
Other Current Liabilities 109.6m
Non-Current Liabilities 8.5B
Long-Term Debt 7.2B
Other Non-Current Liabilities 1.3B
Efficiency

Earnings Waterfall
Lithia Motors Inc

Revenue
31B USD
Cost of Revenue
-25.9B USD
Gross Profit
5.2B USD
Operating Expenses
-3.5B USD
Operating Income
1.7B USD
Other Expenses
-699m USD
Net Income
1B USD

Free Cash Flow Analysis
Lithia Motors Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
Chart
Table
What is Free Cash Flow?
Fundamental Scores

LAD Profitability Score
Profitability Due Diligence

Lithia Motors Inc's profitability score is 55/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Years Revenue Growth
Positive 3-Year Average ROE
Positive Revenue Growth Forecast
Positive Gross Profit
55/100
Profitability
Score

Lithia Motors Inc's profitability score is 55/100. The higher the profitability score, the more profitable the company is.

LAD Solvency Score
Solvency Due Diligence

Lithia Motors Inc's solvency score is 37/100. The higher the solvency score, the more solvent the company is.

Average Altman Z-Score
Long-Term Solvency
Short-Term Solvency
Average D/E
37/100
Solvency
Score

Lithia Motors Inc's solvency score is 37/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

LAD Price Targets Summary
Lithia Motors Inc

Wall Street analysts forecast LAD stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for LAD is 351.51 USD with a low forecast of 232.3 USD and a high forecast of 420 USD.

Lowest
Price Target
232.3 USD
18% Downside
Average
Price Target
351.51 USD
24% Upside
Highest
Price Target
420 USD
48% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

LAD Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

LAD Price
Lithia Motors Inc

1M 1M
+0%
6M 6M
-6%
1Y 1Y
+35%
3Y 3Y
-27%
5Y 5Y
+235%
10Y 10Y
+366%
Annual Price Range
283.66
52w Low
206.65
52w High
329.28
Price Metrics
Average Annual Return 34.4%
Standard Deviation of Annual Returns 58.15%
Max Drawdown -61%
Shares Statistics
Market Capitalization 7.8B USD
Shares Outstanding 27 530 900
Percentage of Shares Shorted 10.33%

LAD Return Decomposition
Main factors of price return

What is price return decomposition?

LAD News

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Last Important Events
Lithia Motors Inc

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Sentiment Analysis
Lithia Motors Inc

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Company Profile

Lithia Motors Inc Logo
Lithia Motors Inc

Country

United States of America

Industry

Retail

Market Cap

7.8B USD

Dividend Yield

0.71%

Description

Lithia Motors, Inc. engages in the operation of automotive franchises and retail of new and used vehicles. The company is headquartered in Medford, Oregon and currently employs 21,150 full-time employees. The company operates in three segments: Domestic, Import, and Luxury. The Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Chrysler, General Motors and Ford. The Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, Subaru, Nissan, Hyundai, Volkswagen, Kia, and Mazda. The Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured by BMW, Mercedes-Benz, Audi, Lexus, Acura, Porsche, Jaguar, Land Rover, Mini, Infiniti, Rolls-Royce, Lamborghini, McLaren, and Pagani. The company offers a range of products and services, such as vehicle ownership lifecycle, including new and used vehicles, finance and insurance products, and automotive repair and maintenance. The company offers 40 brands of new vehicles and all brands of used vehicles in 278 stores in North America.

Contact

OREGON
Medford
150 N Bartlett St
+15417766401.0
https://www.lithia.com/

IPO

1996-12-18

Employees

21 150

Officers

Founder & Chairman
Mr. Sidney B. DeBoer
CEO, President & Director
Mr. Bryan B. DeBoer
Senior VP & CFO
Ms. Tina H. Miller
Executive VP, COO & Secretary
Mr. Christopher S. Holzshu
Senior VP and Chief Technology & Innovation Officer
Mr. George N. Hines
Senior VP & Chief Administrative Officer
Mr. David G. Stork
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Senior VP & Chief People Officer
Mr. Gary M. Glandon
Regional President
Mr. Bryan L. Osterhout
Senior Vice President of DCH Operations
Mr. Chun-Wai C. Liang
Show Less

See Also

Discover More
What is the Intrinsic Value of one LAD stock?

The intrinsic value of one LAD stock under the Base Case scenario is 404.53 USD.

Is LAD stock undervalued or overvalued?

Compared to the current market price of 283.66 USD, Lithia Motors Inc is Undervalued by 30%.