Lithia Motors, Inc. (LAD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Lithia Motors, Inc.

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CarMax, Inc.

Why is Lithia Motors, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 25.06% and Operating profit at 27.64%

Flat results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 5.16 times
DEBTORS TURNOVER RATIO(HY) Lowest at 30.03 times

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%

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 Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Lithia Motors, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Lithia Motors, Inc.

-9.82%

1.00

37.19%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

100.00%

ROCE (avg)

12.65%

ROE (avg)

18.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.89

EV to EBIT

13.16

EV to EBITDA

10.71

EV to Capital Employed

0.96

EV to Sales

0.54

PEG Ratio

Dividend Yield

ROCE (Latest)

7.33%

ROE (Latest)

10.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 28.36

DIVIDEND PAYOUT RATIO(Y)

Highest at 12.82%

RAW MATERIAL COST(Y)

Fallen by 0.66% (YoY

-21What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 142.3 MM has Fallen at -40.23%

NET PROFIT(Q)

At USD 100.62 MM has Fallen at -43.05%

ROCE(HY)

Lowest at 10.81%

OPERATING PROFIT MARGIN(Q)

Lowest at 4.41 %

DEBT-EQUITY RATIO (HY)

Highest at 246.01 %

OPERATING PROFIT(Q)

Lowest at USD 408.9 MM

EPS(Q)

Lowest at USD 4.29

Here's what is working for Lithia Motors, Inc.

Dividend per share

Highest at USD 28.36 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 12.82%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.66% (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

Depreciation

Highest at USD 94.1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Lithia Motors, Inc.

Pre-Tax Profit

At USD 142.3 MM has Fallen at -40.23%

over average net sales of the previous four periods of USD 238.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 100.62 MM has Fallen at -43.05%

over average net sales of the previous four periods of USD 176.68 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit Margin

Lowest at 4.41 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at USD 408.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

EPS

Lowest at USD 4.29

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 246.01 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio