LITHIA MOTORS INC (LAD) Stock Fundamental Analysis
NYSE:LAD - New York Stock Exchange, Inc. - US5367971034 - Common Stock
LAD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 119 industry peers in the Specialty Retail industry. While LAD is still in line with the averages on profitability rating, there are concerns on its financial health. LAD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LAD was profitable.
In the past year LAD had a positive cash flow from operations.
In the past 5 years LAD has always been profitable.
In multiple years LAD reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of LAD (3.44%) is better than 62.93% of its industry peers.
With a decent Return On Equity value of 12.10%, LAD is doing good in the industry, outperforming 68.97% of the companies in the same industry.
LAD's Return On Invested Capital of 5.28% is in line compared to the rest of the industry. LAD outperforms 57.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LAD is below the industry average of 12.38%.
The last Return On Invested Capital (5.28%) for LAD is well below the 3 year average (9.77%), which needs to be investigated, but indicates that LAD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 12.1% | ||
| ROIC | 5.28% |
ROA(3y)7.65%
ROA(5y)6.67%
ROE(3y)21.02%
ROE(5y)19.85%
ROIC(3y)9.77%
ROIC(5y)8.56%
1.3 Margins
LAD has a better Profit Margin (2.30%) than 61.21% of its industry peers.
In the last couple of years the Profit Margin of LAD has grown nicely.
LAD has a Operating Margin of 4.49%. This is in the better half of the industry: LAD outperforms 60.34% of its industry peers.
In the last couple of years the Operating Margin of LAD has grown nicely.
With a Gross Margin value of 15.72%, LAD is not doing good in the industry: 87.93% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of LAD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.49% | ||
| PM (TTM) | 2.3% | ||
| GM | 15.72% |
OM growth 3Y1.36%
OM growth 5Y8.37%
PM growth 3Y-3.44%
PM growth 5Y7.46%
GM growth 3Y-0.52%
GM growth 5Y2.12%
2. Health
2.1 Basic Checks
LAD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LAD has more shares outstanding than it did 1 year ago.
LAD has more shares outstanding than it did 5 years ago.
LAD has a worse debt/assets ratio than last year.
2.2 Solvency
LAD has an Altman-Z score of 2.45. This is not the best score and indicates that LAD is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.45, LAD perfoms like the industry average, outperforming 54.31% of the companies in the same industry.
LAD has a Debt/Equity ratio of 2.01. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LAD (2.01) is worse than 69.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.45 |
ROIC/WACC0.57
WACC9.23%
2.3 Liquidity
A Current Ratio of 1.18 indicates that LAD should not have too much problems paying its short term obligations.
The Current ratio of LAD (1.18) is worse than 64.66% of its industry peers.
A Quick Ratio of 0.27 indicates that LAD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.27, LAD is doing worse than 77.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The earnings per share for LAD have decreased strongly by -19.18% in the last year.
The Earnings Per Share has been growing by 29.82% on average over the past years. This is a very strong growth
The Revenue has grown by 14.45% in the past year. This is quite good.
The Revenue has been growing by 21.30% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-19.18%
EPS 3Y26.78%
EPS 5Y29.82%
EPS Q2Q%-11.24%
Revenue 1Y (TTM)14.45%
Revenue growth 3Y33.24%
Revenue growth 5Y21.3%
Sales Q2Q%11.41%
3.2 Future
Based on estimates for the next years, LAD will show a small growth in Earnings Per Share. The EPS will grow by 7.31% on average per year.
Based on estimates for the next years, LAD will show a quite strong growth in Revenue. The Revenue will grow by 8.37% on average per year.
EPS Next Y-19.21%
EPS Next 2Y-1.84%
EPS Next 3Y4.52%
EPS Next 5Y7.31%
Revenue Next Year15.02%
Revenue Next 2Y11.49%
Revenue Next 3Y10.56%
Revenue Next 5Y8.37%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.63, the valuation of LAD can be described as very reasonable.
Based on the Price/Earnings ratio, LAD is valued cheaper than 84.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of LAD to the average of the S&P500 Index (28.29), we can say LAD is valued rather cheaply.
The Price/Forward Earnings ratio is 9.97, which indicates a very decent valuation of LAD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LAD indicates a rather cheap valuation: LAD is cheaper than 85.34% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, LAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 9.97 |
4.2 Price Multiples
LAD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LAD is cheaper than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.56 |
4.3 Compensation for Growth
LAD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-1.84%
EPS Next 3Y4.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, LAD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.27, LAD pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.59, LAD pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
On average, the dividend of LAD grows each year by 10.96%, which is quite nice.
LAD has been paying a dividend for at least 10 years, so it has a reliable track record.
LAD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.96%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
7.02% of the earnings are spent on dividend by LAD. This is a low number and sustainable payout ratio.
The dividend of LAD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.02%
EPS Next 2Y-1.84%
EPS Next 3Y4.52%
LITHIA MOTORS INC
NYSE:LAD (1/21/2025, 8:11:09 PM)
After market: 353.85 0 (0%)353.85
+1.5 (+0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.76%
Inst Owner Change0.52%
Ins Owners1.19%
Ins Owner Change-7.42%
Market Cap9.43B
Analysts80
Price Target400.86 (13.29%)
Short Float %7.61%
Short Ratio7.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend1.94
Dividend Growth(5Y)10.96%
DP7.02%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.95%
Min EPS beat(2)7.02%
Max EPS beat(2)10.88%
EPS beat(4)2
Avg EPS beat(4)-1.6%
Min EPS beat(4)-23.36%
Max EPS beat(4)10.88%
EPS beat(8)3
Avg EPS beat(8)-1.86%
EPS beat(12)5
Avg EPS beat(12)0.52%
EPS beat(16)9
Avg EPS beat(16)8.34%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)-2.05%
Revenue beat(4)0
Avg Revenue beat(4)-2.91%
Min Revenue beat(4)-4.48%
Max Revenue beat(4)-1.4%
Revenue beat(8)1
Avg Revenue beat(8)-2.3%
Revenue beat(12)3
Avg Revenue beat(12)-1.25%
Revenue beat(16)6
Avg Revenue beat(16)1.05%
PT rev (1m)0%
PT rev (3m)17.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.28%
EPS NY rev (1m)0%
EPS NY rev (3m)2.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 9.97 | ||
| P/S | 0.27 | ||
| P/FCF | N/A | ||
| P/OCF | 138.42 | ||
| P/B | 1.43 | ||
| P/tB | 4.95 | ||
| EV/EBITDA | 9.56 |
EPS(TTM)30.43
EY8.6%
EPS(NY)35.49
Fwd EY10.03%
FCF(TTM)-10.15
FCFYN/A
OCF(TTM)2.56
OCFY0.72%
SpS1302.14
BVpS247.92
TBVpS71.44
PEG (NY)N/A
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 12.1% | ||
| ROCE | 9.39% | ||
| ROIC | 5.28% | ||
| ROICexc | 5.33% | ||
| ROICexgc | 6.83% | ||
| OM | 4.49% | ||
| PM (TTM) | 2.3% | ||
| GM | 15.72% | ||
| FCFM | N/A |
ROA(3y)7.65%
ROA(5y)6.67%
ROE(3y)21.02%
ROE(5y)19.85%
ROIC(3y)9.77%
ROIC(5y)8.56%
ROICexc(3y)10.03%
ROICexc(5y)8.77%
ROICexgc(3y)12.85%
ROICexgc(5y)10.89%
ROCE(3y)15.62%
ROCE(5y)14.7%
ROICexcg growth 3Y4.88%
ROICexcg growth 5Y4.73%
ROICexc growth 3Y-0.01%
ROICexc growth 5Y2.1%
OM growth 3Y1.36%
OM growth 5Y8.37%
PM growth 3Y-3.44%
PM growth 5Y7.46%
GM growth 3Y-0.52%
GM growth 5Y2.12%
F-Score4
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.27 | ||
| Cap/Depr | 125.85% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 3.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 2.45 |
F-Score4
WACC9.23%
ROIC/WACC0.57
Cap/Depr(3y)164.28%
Cap/Depr(5y)165.21%
Cap/Sales(3y)0.99%
Cap/Sales(5y)1.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.18%
EPS 3Y26.78%
EPS 5Y29.82%
EPS Q2Q%-11.24%
EPS Next Y-19.21%
EPS Next 2Y-1.84%
EPS Next 3Y4.52%
EPS Next 5Y7.31%
Revenue 1Y (TTM)14.45%
Revenue growth 3Y33.24%
Revenue growth 5Y21.3%
Sales Q2Q%11.41%
Revenue Next Year15.02%
Revenue Next 2Y11.49%
Revenue Next 3Y10.56%
Revenue Next 5Y8.37%
EBIT growth 1Y-9.12%
EBIT growth 3Y35.06%
EBIT growth 5Y31.46%
EBIT Next Year-4.19%
EBIT Next 3Y6.26%
EBIT Next 5Y8.76%
FCF growth 1Y72.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y109.43%
OCF growth 3YN/A
OCF growth 5YN/A