Lithia Motors Inc
NYSE:LAD
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%.
Valuation Backtest
Lithia Motors Inc
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Fundamental Analysis
Lithia & Driveway's Strategic Growth and Efficiency
2023-Q4 Earnings Call
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.
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 |
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
What is Free Cash Flow?
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.
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.
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
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.
Ownership
LAD Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
LAD Price
Lithia Motors Inc
Average Annual Return | 34.4% |
Standard Deviation of Annual Returns | 58.15% |
Max Drawdown | -61% |
Market Capitalization | 7.8B USD |
Shares Outstanding | 27 530 900 |
Percentage of Shares Shorted | 10.33% |
LAD News
Last Important Events
Lithia Motors Inc
Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.
Sentiment Analysis
Lithia Motors Inc
Company Profile
Country
Industry
Market Cap
Dividend Yield
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
IPO
Employees
Officers
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%.