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 -15.24%, its profits have fallen by -10.9%
4
Below par performance in long term as well as near term
- Along with generating -15.24% 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.
-15.02%
0.69
36.60%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
25.06%
EBIT Growth (5y)
27.64%
EBIT to Interest (avg)
7.54
Debt to EBITDA (avg)
4.63
Net Debt to Equity (avg)
1.90
Sales to Capital Employed (avg)
1.83
Tax Ratio
24.04%
Dividend Payout Ratio
7.06%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
12.65%
ROE (avg)
18.98%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.24
EV to EBIT
12.99
EV to EBITDA
10.72
EV to Capital Employed
1.08
EV to Sales
0.58
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.33%
ROE (Latest)
12.50%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 776 MM
INTEREST COVERAGE RATIO(Q)
Highest at 411.91
DIVIDEND PER SHARE(HY)
Highest at USD 30.03
RAW MATERIAL COST(Y)
Fallen by -0.51% (YoY
NET SALES(Q)
Highest at USD 9,583 MM
PRE-TAX PROFIT(Q)
Highest at USD 352.2 MM
NET PROFIT(Q)
Highest at USD 256.17 MM
EPS(Q)
Highest at USD 9.89
-4What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.16 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 30.03 times
Here's what is working for Lithia Motors, Inc.
Interest Coverage Ratio
Highest at 411.91 and Grown
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at USD 776 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 30.03 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 9,583 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 352.2 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 256.17 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 9.89
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -0.51% (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 88.8 MM
in the last five periodsMOJO 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.
Inventory Turnover Ratio
Lowest at 5.16 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 30.03 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at USD 0.17 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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