Lithia Motors Stock Beta
| LAD Stock | USD 295.51 9.92 3.47% |
Lithia Motors fundamentals help investors to digest information that contributes to Lithia Motors' financial success or failures. It also enables traders to predict the movement of Lithia Stock. The fundamental analysis module provides a way to measure Lithia Motors' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Lithia Motors stock.
Lithia | Beta |
Lithia Motors Company Beta Analysis
Lithia Motors' Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Lithia Motors Beta | 1.69 |
Most of Lithia Motors' fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Lithia Motors is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Lithia Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Lithia Motors is extremely important. It helps to project a fair market value of Lithia Stock properly, considering its historical fundamentals such as Beta. Since Lithia Motors' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Lithia Motors' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Lithia Motors' interrelated accounts and indicators.
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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Lithia Motors has a Beta of 1.686. This is 100.71% higher than that of the Specialty Retail sector and 53.27% higher than that of the Consumer Discretionary industry. The beta for all United States stocks is notably lower than that of the firm.
Lithia Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Lithia Motors' direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Lithia Motors could also be used in its relative valuation, which is a method of valuing Lithia Motors by comparing valuation metrics of similar companies.Lithia Motors is currently under evaluation in beta category among its peers.
Lithia Motors ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Lithia Motors' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Lithia Motors' managers, analysts, and investors.Environmental | Governance | Social |
Lithia Motors Institutional Holders
Institutional Holdings refers to the ownership stake in Lithia Motors that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Lithia Motors' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Lithia Motors' value.| 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 | 20242024-12-31 | 427.4 K | Royal London Asset Management Ltd | 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 |
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Lithia Motors will likely underperform.
Lithia Fundamentals
| Return On Equity | 0.13 | ||||
| Return On Asset | 0.0464 | ||||
| Profit Margin | 0.02 % | ||||
| Operating Margin | 0.05 % | ||||
| Current Valuation | 21.22 B | ||||
| Shares Outstanding | 26.27 M | ||||
| Shares Owned By Insiders | 1.22 % | ||||
| Shares Owned By Institutions | 98.78 % | ||||
| Number Of Shares Shorted | 1.76 M | ||||
| Price To Earning | 9.87 X | ||||
| Price To Book | 1.17 X | ||||
| Price To Sales | 0.21 X | ||||
| Revenue | 36.19 B | ||||
| Gross Profit | 5.58 B | ||||
| EBITDA | 2.2 B | ||||
| Net Income | 821.6 M | ||||
| Cash And Equivalents | 246.7 M | ||||
| Cash Per Share | 8.44 X | ||||
| Total Debt | 7.74 B | ||||
| Debt To Equity | 1.37 % | ||||
| Current Ratio | 1.66 X | ||||
| Book Value Per Share | 252.10 X | ||||
| Cash Flow From Operations | 425.1 M | ||||
| Short Ratio | 5.48 X | ||||
| Earnings Per Share | 29.64 X | ||||
| Price To Earnings To Growth | 0.58 X | ||||
| Target Price | 431.38 | ||||
| Number Of Employees | 30 K | ||||
| Beta | 1.69 | ||||
| Market Capitalization | 7.76 B | ||||
| Total Asset | 23.13 B | ||||
| Retained Earnings | 5.76 B | ||||
| Working Capital | 1.22 B | ||||
| Current Asset | 1.88 B | ||||
| Current Liabilities | 1.59 B | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 0.79 % | ||||
| Net Asset | 23.13 B | ||||
| Last Dividend Paid | 2.12 |
About Lithia Motors Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Lithia Motors's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Lithia Motors using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Lithia Motors based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Lithia Motors is a strong investment it is important to analyze Lithia Motors' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lithia Motors' future performance. For an informed investment choice regarding Lithia Stock, refer to the following important reports:Check out Lithia Motors Piotroski F Score and Lithia Motors Altman Z Score analysis. For information on how to trade Lithia Stock refer to our How to Trade Lithia Stock guide.You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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.