LITHIA MOTORS INC (LAD)
US5367971034 - Common Stock
LAD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 125 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LAD had positive earnings in the past year.
LAD had a negative operating cash flow in the past year.
LAD had positive earnings in each of the past 5 years.
In multiple years LAD reported negative operating cash flow during the last 5 years.
1.2 Ratios
LAD has a Return On Assets of 4.21%. This is in the better half of the industry: LAD outperforms 64.00% of its industry peers.
Looking at the Return On Equity, with a value of 14.72%, LAD is in the better half of the industry, outperforming 71.20% of the companies in the same industry.
LAD has a Return On Invested Capital (6.07%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for LAD is below the industry average of 13.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 14.72% | ||
| ROIC | 6.07% |
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 Profit Margin of 2.87%. This is in the better half of the industry: LAD outperforms 63.20% of its industry peers.
In the last couple of years the Profit Margin of LAD has grown nicely.
With a decent Operating Margin value of 5.19%, LAD is doing good in the industry, outperforming 62.40% of the companies in the same industry.
LAD's Operating Margin has improved in the last couple of years.
The Gross Margin of LAD (16.32%) is worse than 88.80% of its industry peers.
LAD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.19% | ||
| PM (TTM) | 2.87% | ||
| GM | 16.32% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LAD is creating some value.
The number of shares outstanding for LAD has been increased compared to 1 year ago.
The number of shares outstanding for LAD has been increased compared to 5 years ago.
The debt/assets ratio for LAD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.37 indicates that LAD is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LAD (2.37) is comparable to the rest of the industry.
LAD has a Debt/Equity ratio of 1.96. This is a high value indicating a heavy dependency on external financing.
LAD's Debt to Equity ratio of 1.96 is on the low side compared to the rest of the industry. LAD is outperformed by 68.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.37 |
ROIC/WACC0.73
WACC8.33%
2.3 Liquidity
A Current Ratio of 1.17 indicates that LAD should not have too much problems paying its short term obligations.
LAD has a Current ratio of 1.17. This is in the lower half of the industry: LAD underperforms 64.80% of its industry peers.
A Quick Ratio of 0.28 indicates that LAD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.28, LAD is doing worse than 76.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The earnings per share for LAD have decreased strongly by -15.31% in the last year.
Measured over the past years, LAD shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.82% on average per year.
LAD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.65%.
Measured over the past years, LAD shows a very strong growth in Revenue. The Revenue has been growing by 21.30% on average per year.
EPS 1Y (TTM)-15.31%
EPS 3Y26.78%
EPS 5Y29.82%
EPS Q2Q%-27.61%
Revenue 1Y (TTM)14.65%
Revenue growth 3Y33.24%
Revenue growth 5Y21.3%
Sales Q2Q%22.69%
3.2 Future
The Earnings Per Share is expected to grow by 7.24% on average over the next years.
The Revenue is expected to grow by 9.07% on average over the next years. This is quite good.
EPS Next Y-23.23%
EPS Next 2Y-4.06%
EPS Next 3Y5.57%
EPS Next 5Y7.24%
Revenue Next Year16.51%
Revenue Next 2Y12.79%
Revenue Next 3Y12.53%
Revenue Next 5Y9.07%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 7.29, the valuation of LAD can be described as very cheap.
Based on the Price/Earnings ratio, LAD is valued cheaper than 97.60% of the companies in the same industry.
When comparing the Price/Earnings ratio of LAD to the average of the S&P500 Index (28.39), we can say LAD is valued rather cheaply.
A Price/Forward Earnings ratio of 7.42 indicates a rather cheap valuation of LAD.
Based on the Price/Forward Earnings ratio, LAD is valued cheaper than 89.60% of the companies in the same industry.
LAD is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 7.42 |
4.2 Price Multiples
LAD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LAD is cheaper than 69.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-4.06%
EPS Next 3Y5.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, LAD is not a good candidate for dividend investing.
LAD's Dividend Yield is a higher than the industry average which is at 3.41.
With a Dividend Yield of 0.83, LAD pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of LAD is nicely growing with an annual growth rate of 10.96%!
LAD has paid a dividend for at least 10 years, which is a reliable track record.
LAD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.96%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
5.89% 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.
DP5.89%
EPS Next 2Y-4.06%
EPS Next 3Y5.57%
LITHIA MOTORS INC
NYSE:LAD (6/14/2024, 7:19:34 PM)
After market: 251.75 0 (0%)251.75
-5.06 (-1.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 7.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 14.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.19% | ||
| PM (TTM) | 2.87% | ||
| GM | 16.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-15.31%
EPS 3Y26.78%
EPS 5Y
EPS Q2Q%
EPS Next Y-23.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.65%
Revenue growth 3Y33.24%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y