Lithia Motors Stock Buy Hold or Sell Recommendation
| LAD Stock | USD 295.51 9.92 3.47% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Lithia Motors is 'Hold'. Macroaxis provides Lithia Motors buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding LAD positions.
Check out Lithia Motors Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Lithia Stock refer to our How to Trade Lithia Stock guide. Note, we conduct extensive research on individual companies such as Lithia and provide practical buy, sell, or hold advice based on investors' constraints. Lithia Motors. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Lithia |
Execute Lithia Motors Buy or Sell Advice
The Lithia recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Lithia Motors. Macroaxis does not own or have any residual interests in Lithia Motors or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Lithia Motors' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Lithia Motors Trading Alerts and Improvement Suggestions
| Lithia Motors generated a negative expected return over the last 90 days | |
| Over 99.0% of the company shares are owned by institutional investors | |
| Latest headline from simplywall.st: Disposition of 270 shares by Loretz Congdon Stacy of Lithia Motors at 298.7985 subject to Rule 16b-3 |
Lithia Motors Returns Distribution Density
The distribution of Lithia Motors' historical returns is an attempt to chart the uncertainty of Lithia Motors' future price movements. The chart of the probability distribution of Lithia Motors daily returns describes the distribution of returns around its average expected value. We use Lithia Motors price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Lithia Motors returns is essential to provide solid investment advice for Lithia Motors.
| Mean Return | -0.35 | Value At Risk | -3.71 | Potential Upside | 3.40 | Standard Deviation | 1.95 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Lithia Motors historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Lithia Stock Institutional Investors
| Shares | Conifer Management, Llc | 2024-12-31 | 500 K | Steadfast Capital Management Llc | 2024-12-31 | 460.3 K | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 453.7 K | Geode Capital Management, Llc | 2024-12-31 | 440.3 K | Norges Bank | 2024-12-31 | 427.4 K | Royal London Asset Management Ltd | 2024-12-31 | 362 K | Hotchkis & Wiley Capital Management Llc | 2024-12-31 | 346 K | River Road Asset Management, Llc | 2024-12-31 | 326.6 K | Cooperman Leon G | 2024-12-31 | 317.6 K | Vanguard Group Inc | 2024-12-31 | 2.7 M | Pamet Capital Management, Lp | 2024-12-31 | 2.4 M |
Lithia Motors Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | 228.8M | 674.6M | (923M) | (863.5M) | (260.9M) | (247.9M) | |
| Change In Cash | 76.2M | 16M | 93M | 700.5M | (526.2M) | (499.9M) | |
| Free Cash Flow | 374.4M | 1.5B | (913.2M) | (702.6M) | 73.7M | 77.4M | |
| Depreciation | 121.3M | 166.3M | 228.1M | 264.6M | 389.8M | 409.3M | |
| Other Non Cash Items | (53.8M) | 76.1M | (26.9M) | 16.7M | (11.3M) | (10.7M) | |
| Dividends Paid | 29.1M | 38.8M | 45.2M | 52.8M | 56.5M | 59.3M | |
| Capital Expenditures | 167.8M | 260.4M | 303.1M | 230.2M | 351.4M | 369.0M | |
| Net Income | 470.3M | 1.1B | 1.3B | 1.0B | 821.6M | 862.7M | |
| End Period Cash Flow | 160.2M | 178.5M | 271.5M | 972M | 445.8M | 468.1M | |
| Investments | 1.3M | (10.3M) | (11.8M) | (1.6B) | (1.9B) | (1.8B) | |
| Net Borrowings | 14.1M | 485.7M | 1.5B | 2.2B | 2.6B | 2.7B | |
| Change To Netincome | 49.1M | (13.4M) | 143.6M | 109.4M | 125.8M | 132.1M |
Lithia Motors Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lithia Motors or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lithia Motors' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Lithia stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.23 | |
β | Beta against Dow Jones | 1.24 | |
σ | Overall volatility | 2.03 | |
Ir | Information ratio | -0.13 |
Lithia Motors Volatility Alert
Lithia Motors exhibits very low volatility with skewness of 0.09 and kurtosis of 0.45. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lithia Motors' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lithia Motors' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Lithia Motors Fundamentals Vs Peers
Comparing Lithia Motors' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Lithia Motors' direct or indirect competition across all of the common fundamentals between Lithia Motors and the related equities. This way, we can detect undervalued stocks with similar characteristics as Lithia Motors or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Lithia Motors' fundamental indicators could also be used in its relative valuation, which is a method of valuing Lithia Motors by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Lithia Motors to competition |
| Fundamentals | Lithia Motors | Peer Average |
| Return On Equity | 0.13 | -0.31 |
| Return On Asset | 0.0464 | -0.14 |
| Profit Margin | 0.02 % | (1.27) % |
| Operating Margin | 0.05 % | (5.51) % |
| Current Valuation | 21.22 B | 16.62 B |
| Shares Outstanding | 26.27 M | 571.82 M |
| Shares Owned By Insiders | 1.22 % | 10.09 % |
| Shares Owned By Institutions | 98.78 % | 39.21 % |
| Number Of Shares Shorted | 1.76 M | 4.71 M |
| Price To Earning | 9.87 X | 28.72 X |
| Price To Book | 1.17 X | 9.51 X |
| Price To Sales | 0.21 X | 11.42 X |
| Revenue | 36.19 B | 9.43 B |
| Gross Profit | 5.58 B | 27.38 B |
| EBITDA | 2.2 B | 3.9 B |
| Net Income | 821.6 M | 570.98 M |
| Cash And Equivalents | 246.7 M | 2.7 B |
| Cash Per Share | 8.44 X | 5.01 X |
| Total Debt | 7.74 B | 5.32 B |
| Debt To Equity | 1.37 % | 48.70 % |
| Current Ratio | 1.66 X | 2.16 X |
| Book Value Per Share | 252.10 X | 1.93 K |
| Cash Flow From Operations | 425.1 M | 971.22 M |
| Short Ratio | 5.48 X | 4.00 X |
| Earnings Per Share | 29.64 X | 3.12 X |
| Price To Earnings To Growth | 0.58 X | 4.89 X |
| Target Price | 431.38 | |
| Number Of Employees | 30 K | 18.84 K |
| Beta | 1.69 | -0.15 |
| Market Capitalization | 7.76 B | 19.03 B |
| Total Asset | 23.13 B | 29.47 B |
| Retained Earnings | 5.76 B | 9.33 B |
| Working Capital | 1.22 B | 1.48 B |
Note: Disposition of tradable shares by Sidney DeBoer of Lithia Motors at 344.44 subject to Rule 16b-3 [view details]
Lithia Motors Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Lithia . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Lithia Motors Buy or Sell Advice
When is the right time to buy or sell Lithia Motors? Buying financial instruments such as Lithia Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Lithia Motors Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Lithia Stock refer to our How to Trade Lithia Stock guide.You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lithia Motors. If investors know Lithia will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lithia Motors listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.051 | Dividend Share 2.12 | Earnings Share 29.64 | Revenue Per Share | Quarterly Revenue Growth 0.195 |
The market value of Lithia Motors is measured differently than its book value, which is the value of Lithia that is recorded on the company's balance sheet. Investors also form their own opinion of Lithia Motors' value that differs from its market value or its book value, called intrinsic value, which is Lithia Motors' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lithia Motors' market value can be influenced by many factors that don't directly affect Lithia Motors' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lithia Motors' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lithia Motors is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lithia Motors' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.