Is Lithia Motors Stock a Good Investment?
Lithia Motors Investment Advice | LAD |
- Examine Lithia Motors' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Lithia Motors' leadership team and their track record. Good management can help Lithia Motors navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automotive Retail space and any emerging trends that could impact Lithia Motors' business and its evolving consumer preferences.
- Compare Lithia Motors' performance and market position to its competitors. Analyze how Lithia Motors is positioned in terms of product offerings, innovation, and market share.
- Check if Lithia Motors pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Lithia Motors' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Lithia Motors stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Lithia Motors is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Lithia Motors Stock
Researching Lithia Motors' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.56. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Lithia Motors has Price/Earnings To Growth (PEG) ratio of 1.32. The entity recorded earning per share (EPS) of 29.29. The firm last dividend was issued on the 8th of November 2024. Lithia Motors had 1:10 split on the 16th of January 2018.
To determine if Lithia Motors is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Lithia Motors' research are outlined below:
| Lithia Motors has about 246.7 M in cash with (472.4 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.44. | |
| Over 98.0% of the company shares are owned by institutional investors | |
| On 15th of November 2024 Lithia Motors paid $ 0.53 per share dividend to its current shareholders | |
| Latest headline from thelincolnianonline.com: Verition Fund Management LLC Increases Stock Holdings in Lithia Motors, Inc. |
Lithia Motors Quarterly Liabilities And Stockholders Equity |
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Lithia Motors uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Lithia Motors. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Lithia Motors' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 14th of February 2024 Upcoming Quarterly Report | View | |
| 17th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Lithia Motors' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Lithia Motors' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-03-16 | 2008-12-31 | -0.09 | -0.1 | -0.01 | 11 | ||
2009-04-29 | 2009-03-31 | -0.01 | 0.01 | 0.02 | 200 | ||
1997-04-30 | 1997-03-31 | 0.14 | 0.16 | 0.02 | 14 | ||
1997-03-04 | 1996-12-31 | 0.09 | 0.11 | 0.02 | 22 | ||
2010-04-27 | 2010-03-31 | 0.06 | 0.09 | 0.03 | 50 | ||
2008-10-28 | 2008-09-30 | 0.1 | 0.13 | 0.03 | 30 | ||
2001-04-30 | 2001-03-31 | 0.18 | 0.21 | 0.03 | 16 | ||
1998-04-23 | 1998-03-31 | 0.18 | 0.21 | 0.03 | 16 |
Know Lithia Motors' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Lithia Motors is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Lithia Motors backward and forwards among themselves. Lithia Motors' institutional investor refers to the entity that pools money to purchase Lithia Motors' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Conifer Management, Llc | 2024-09-30 | 700 K | Canada Pension Plan Investment Board | 2024-09-30 | 679.7 K | Royal London Asset Management Ltd | 2024-06-30 | 562.8 K | Lyrical Asset Management Lp | 2024-09-30 | 498.7 K | Geode Capital Management, Llc | 2024-09-30 | 446.6 K | Cooperman Leon G | 2024-09-30 | 416.1 K | River Road Asset Management, Llc | 2024-09-30 | 365.2 K | Norges Bank | 2024-06-30 | 348.2 K | Balyasny Asset Management Llc | 2024-09-30 | 330.5 K | Vanguard Group Inc | 2024-09-30 | 2.7 M | Pamet Capital Management, Lp | 2024-09-30 | 2.4 M |
Lithia Motors' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 10.31 B.Market Cap |
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Lithia Motors' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.04 | |
| Return On Capital Employed | 0.12 | 0.14 | |
| Return On Assets | 0.05 | 0.03 | |
| Return On Equity | 0.16 | 0.25 |
Determining Lithia Motors' profitability involves analyzing its financial statements and using various financial metrics to determine if Lithia Motors is a good buy. For example, gross profit margin measures Lithia Motors' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Lithia Motors' profitability and make more informed investment decisions.
Please note, the presentation of Lithia Motors' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Lithia Motors' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Lithia Motors' management manipulating its earnings.
Evaluate Lithia Motors' management efficiency
Lithia Motors has Return on Asset of 0.047 % which means that on every $100 spent on assets, it made $0.047 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1293 %, implying that it generated $0.1293 on every 100 dollars invested. Lithia Motors' management efficiency ratios could be used to measure how well Lithia Motors manages its routine affairs as well as how well it operates its assets and liabilities. At present, Lithia Motors' Return On Equity is projected to slightly decrease based on the last few years of reporting. At present, Lithia Motors' Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 4.1 B, whereas Intangibles To Total Assets are forecasted to decline to 0.15.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 228.47 | 239.89 | |
| Tangible Book Value Per Share | 70.91 | 74.46 | |
| Enterprise Value Over EBITDA | 10.02 | 11.29 | |
| Price Book Value Ratio | 1.46 | 1.38 | |
| Enterprise Value Multiple | 10.02 | 11.29 | |
| Price Fair Value | 1.46 | 1.38 | |
| Enterprise Value | 1.1 B | 617.5 M |
Evaluating the management effectiveness of Lithia Motors allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Lithia Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Dividend Yield 0.0055 | Forward Dividend Yield 0.0055 | Forward Dividend Rate 2.12 | Beta 1.626 |
Basic technical analysis of Lithia Stock
As of the 1st of December, Lithia Motors secures the Mean Deviation of 1.73, downside deviation of 1.86, and Risk Adjusted Performance of 0.1439. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lithia Motors, as well as the relationship between them. Please verify Lithia Motors maximum drawdown, as well as the relationship between the downside variance and skewness to decide if Lithia Motors is priced some-what accurately, providing market reflects its recent price of 386.9 per share. Given that Lithia Motors has jensen alpha of 0.2114, we recommend you to check Lithia Motors's last-minute market performance to make sure the company can sustain itself at a future point.Lithia Motors' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Lithia Motors insiders, such as employees or executives, is commonly permitted as long as it does not rely on Lithia Motors' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Lithia Motors insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Tina Miller over two months ago Disposition of 1903 shares by Tina Miller of Lithia Motors at 329.28 subject to Rule 16b-3 | ||
Bryan Deboer over three months ago Acquisition by Bryan Deboer of 11185 shares of Lithia Motors at 286.6 subject to Rule 16b-3 | ||
Louis Miramontes over three months ago Disposition of 300 shares by Louis Miramontes of Lithia Motors at 284.23 subject to Rule 16b-3 | ||
Bryan Deboer over three months ago Disposition of 5962 shares by Bryan Deboer of Lithia Motors at 302.1553 subject to Rule 16b-3 | ||
Kenneth Roberts over six months ago Acquisition by Kenneth Roberts of 195 shares of Lithia Motors subject to Rule 16b-3 | ||
Kenneth Roberts over a year ago Bona fide gift to Kenneth Roberts of 195 shares of Lithia Motors subject to Section 16 | ||
David Stork over a year ago Sale by David Stork of 325 shares of Lithia Motors | ||
David Stork over a year ago Acquisition by David Stork of 12 shares of Lithia Motors subject to Rule 16b-3 |
Lithia Motors' Outstanding Corporate Bonds
Lithia Motors issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Lithia Motors uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Lithia bonds can be classified according to their maturity, which is the date when Lithia Motors has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| US536797AG85 Corp BondUS536797AG85 | View | |
| LITHIA MTRS INC Corp BondUS536797AF03 | View | |
| Lithia Motors 4625 Corp BondUS536797AE38 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View |
Understand Lithia Motors' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Lithia Motors' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1439 | |||
| Market Risk Adjusted Performance | 0.2681 | |||
| Mean Deviation | 1.73 | |||
| Semi Deviation | 1.58 | |||
| Downside Deviation | 1.86 | |||
| Coefficient Of Variation | 557.43 | |||
| Standard Deviation | 2.39 | |||
| Variance | 5.69 | |||
| Information Ratio | 0.1217 | |||
| Jensen Alpha | 0.2114 | |||
| Total Risk Alpha | 0.0197 | |||
| Sortino Ratio | 0.1564 | |||
| Treynor Ratio | 0.2581 | |||
| Maximum Drawdown | 13.35 | |||
| Value At Risk | (3.18) | |||
| Potential Upside | 3.52 | |||
| Downside Variance | 3.45 | |||
| Semi Variance | 2.5 | |||
| Expected Short fall | (2.02) | |||
| Skewness | 1.12 | |||
| Kurtosis | 3.7 |
| Risk Adjusted Performance | 0.1439 | |||
| Market Risk Adjusted Performance | 0.2681 | |||
| Mean Deviation | 1.73 | |||
| Semi Deviation | 1.58 | |||
| Downside Deviation | 1.86 | |||
| Coefficient Of Variation | 557.43 | |||
| Standard Deviation | 2.39 | |||
| Variance | 5.69 | |||
| Information Ratio | 0.1217 | |||
| Jensen Alpha | 0.2114 | |||
| Total Risk Alpha | 0.0197 | |||
| Sortino Ratio | 0.1564 | |||
| Treynor Ratio | 0.2581 | |||
| Maximum Drawdown | 13.35 | |||
| Value At Risk | (3.18) | |||
| Potential Upside | 3.52 | |||
| Downside Variance | 3.45 | |||
| Semi Variance | 2.5 | |||
| Expected Short fall | (2.02) | |||
| Skewness | 1.12 | |||
| Kurtosis | 3.7 |
Consider Lithia Motors' intraday indicators
Lithia Motors intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Lithia Motors stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Lithia Motors Corporate Filings
F4 | 27th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 13th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 25th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Lithia Stock media impact
Far too much social signal, news, headlines, and media speculation about Lithia Motors that are available to investors today. That information is available publicly through Lithia media outlets and privately through word of mouth or via Lithia internal channels. However, regardless of the origin, that massive amount of Lithia data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Lithia Motors news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Lithia Motors relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Lithia Motors' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Lithia Motors alpha.
Lithia Motors Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Lithia Motors can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Lithia Motors Historical Investor Sentiment
Investor biases related to Lithia Motors' public news can be used to forecast risks associated with an investment in Lithia. The trend in average sentiment can be used to explain how an investor holding Lithia can time the market purely based on public headlines and social activities around Lithia Motors. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Lithia Motors' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Lithia Motors and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Lithia Motors news discussions. The higher the estimate score, the more favorable the investor's outlook on Lithia Motors.
Lithia Motors Corporate Directors
| Shauna McIntyre | Independent Director | Profile | |
| David Robino | Independent Director | Profile | |
| Kenneth Roberts | Independent Director | Profile | |
| Louis Miramontes | Lead Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in 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. For information on how to trade Lithia Stock refer to our How to Trade Lithia Stock guide.You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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 (0.17) | Dividend Share 2.09 | Earnings Share 29.29 | Revenue Per Share 1.3 K | Quarterly Revenue Growth 0.114 |
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.
In summary, please note that there is a difference between Lithia Motors' value and its price, as these two are different measures arrived at by various 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.