Morningstar

Lithia Motors Inc Class A LAD

Morningstar Rating
Unlock
Stock XNYS Rating as of
$307.19 −10.08 (3.18%)
View Full Chart
As of Delayed Price Closed

Company Report

View Archive

Lithia's Growth Story Is the Most Aggressive and Versatile in Our Auto Dealer Coverage

David Whiston

Lithia Motors' business model is strong because it is the only large publicly traded dealer operating in rural markets. These markets are unattractive to larger public dealers, as their management teams have no interest in small cities and they have import and luxury brand mixes more favorable to suburban markets. Nationwide, many Lithia brand stores have no competitors within 100 miles, giving Lithia pricing power.

Read Full Report

Price vs Fair Value

View History
LAD is trading at a 684% premium.
Price
$307.19
Fair Value
$287.00
Uncertainty
High
1-Star Price
$785.30
5-Star Price
$798.70
Economic Moat
Lmjcsqs
Capital Allocation
Vkfycnsy

Bulls Say, Bears Say

Bulls

Lithia’s growth runway looks very long to us; acquisitions are opening up new areas of the US, and international expansion just started in 2021 by entering Canada and the UK in 2023.

Bears

Lithia could need additional capital to fund expansion. In addition, it will face increased competition for acquisitions now that it will operate in large cities and with Berkshire Hathaway seeking auto dealer acquisitions.

Show More

News

View All

Trading Information

Previous Close Price
$317.27
Day Range
$307.00–315.20
52-Week Range
$231.36–331.96
Bid/Ask
$234.00 / $492.67
Market Cap
$8.21 Bil
Volume/Avg
183,125 / 290,657

Key Statistics

Price/Earnings (Normalized)
9.76
Price/Sales
0.25
Dividend Yield (Trailing)
0.67%
Dividend Yield (Forward)
0.69%
Total Yield
3.39%

Company Profile

Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 50 brands of vehicles at nearly 500 stores globally across the US, Canada, and UK. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the US and we expect more deals over time in the US and, at times, abroad. Annual revenue in 2023 was $31 billion and we see over $50 billion possible in a few years. The US was 90% of 2023 revenue and the UK second at 6%, the latter should rise to around 20% with the 2024 Pendragon acquisition. In 2023, new-car sales were about 49% of total revenue. Lithia was founded in 1946, went public in 1996, and is the largest US auto dealer. It is based in Medford, Oregon.
Sector
Consumer Cyclical
Industry
Auto & Truck Dealerships
Stock Style Box
Small Value
Total Number of Employees
27,446
Website
https://www.lithia.com

Competitors

Valuation

View More
Metric
LAD
ABG
PAG
Price/Earnings (Normalized)
 9.767.9311.14
Price/Book Value
 1.291.372.13
Price/Sales
 0.250.290.36
Price/Cash Flow
 6.655.4510.10
Price/Earnings
LAD
ABG
PAG

Financial Strength

Metric
LAD
ABG
PAG
Quick Ratio
 0.270.200.19
Current Ratio
 1.191.250.98
Interest Coverage
 4.263.435.84
Quick Ratio
LAD
ABG
PAG

Profitability

Metric
LAD
ABG
PAG
Return on Assets (Normalized)
 4.29%6.28%6.12%
Return on Equity (Normalized)
 14.11%18.18%20.43%
Return on Invested Capital (Normalized)
 6.91%9.65%9.27%
Return on Assets
LAD
ABG
PAG

Auto & Truck Dealerships Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Carvana Co Class A
CVNA
—Cwgsjp$21.9 Bil
 CarMax Inc
KMX
TsbllmnPynmsf$11.7 Bil
 D'Ieteren Group ADR
SIETY
—Mlzkcmr$11.2 Bil
 D'Ieteren Group
SIEVF
—Cszcflh$11.2 Bil
 Penske Automotive Group Inc
PAG
PqnlszqTtywbgg$10.6 Bil
 AutoNation Inc
AN
ZsvhdnvDdxbbj$6.9 Bil
 Group 1 Automotive Inc
GPI
QcjmvtdWdwsbs$5.0 Bil
 Asbury Automotive Group Inc
ABG
WpdsfycGzftgd$4.6 Bil
 Sonic Automotive Inc Class A
SAH
VhbxpxtjmXdtggy$1.9 Bil

Sponsor Center