ScoreWhy is Lithia Motors, Inc. ?
1
Healthy long term growth as Net Sales has grown by an annual rate of 25.06% and Operating profit at 27.64%
2
Flat results in Jun 25
- INVENTORY TURNOVER RATIO(HY) Lowest at 5.16 times
- DEBTORS TURNOVER RATIO(HY) Lowest at 30.03 times
3
With ROCE of 8.33%, it has a attractive valuation with a 1.08 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -6.29%, its profits have fallen by -10.9%
4
Below par performance in long term as well as near term
- Along with generating -6.29% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Lithia Motors, Inc. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Lithia Motors, Inc. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Lithia Motors, Inc.
-17.12%
1.00
37.19%
S&P 500
18.34%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
23.45%
EBIT Growth (5y)
17.54%
EBIT to Interest (avg)
7.54
Debt to EBITDA (avg)
4.63
Net Debt to Equity (avg)
1.90
Sales to Capital Employed (avg)
1.79
Tax Ratio
24.04%
Dividend Payout Ratio
6.76%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
12.65%
ROE (avg)
18.98%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
0.89
EV to EBIT
13.11
EV to EBITDA
10.80
EV to Capital Employed
0.97
EV to Sales
0.54
PEG Ratio
0.47
Dividend Yield
NA
ROCE (Latest)
7.37%
ROE (Latest)
12.70%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 542.8 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 9.61%
DIVIDEND PER SHARE(HY)
Highest at USD 31.63
RAW MATERIAL COST(Y)
Fallen by 0.23% (YoY
-16What is not working for the Company
ROCE(HY)
Lowest at 12.34%
INTEREST COVERAGE RATIO(Q)
Lowest at 295.42
OPERATING PROFIT MARGIN(Q)
Lowest at 4.28 %
DEBT-EQUITY RATIO
(HY)
Highest at 216.44 %
INTEREST(Q)
Highest at USD 133.3 MM
OPERATING PROFIT(Q)
Lowest at USD 393.8 MM
PRE-TAX PROFIT(Q)
Lowest at USD 194.5 MM
NET PROFIT(Q)
Lowest at USD 140.36 MM
EPS(Q)
Lowest at USD 5.72
Here's what is working for Lithia Motors, Inc.
Operating Cash Flow
Highest at USD 542.8 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 31.63 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 9.61% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 0.23% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Lithia Motors, Inc.
Interest Coverage Ratio
Lowest at 295.42
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit Margin
Lowest at 4.28 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
At USD 194.5 MM has Fallen at -36.21%
over average net sales of the previous four periods of USD 304.92 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 140.36 MM has Fallen at -38.28%
over average net sales of the previous four periods of USD 227.42 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest
Highest at USD 133.3 MM
in the last five periods and Increased by 5.71% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit
Lowest at USD 393.8 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Pre-Tax Profit
Lowest at USD 194.5 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 140.36 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 5.72
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Highest at 216.44 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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