Lithia Motors Inc

Consumer Discretionary
Retail-Auto Dealers and Gas Stations
www.lithia.com

Earnings Score
Moat Score

Market Cap $10.05B
PE 13
Debt $NaN
Cash $398.60M
EV $NaN
FCF -$270.30M

Earnings

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Sales & Net Margins

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Earnings	$799.30M
EBIT	$1.53B
ROE	12%
ROA	7%
FCF	-$270.30M
Equity	$6.63B
Growth Stability	100%
PE	12.58
PEG	0.4
PB	1.52
P/FCF	-37.2
P/S	0.29
Price/Cash	0.04
Net Margins	2%
Gross Margins	16%
Op. Margins	4%
Earnings CAGR	29%
Sales Growth YoY	11%
Sales Growth QoQ	-0%
Sales CAGR	20%
FCF CAGR	8%
Equity CAGR	31%
Earnings Stability	0.83
Earnings Growth YoY	-20%

Earnings Growth QoQ	-2%
Earnings CAGR 5Y	32%
Sales CAGR 5Y	29%
FCF CAGR 5Y	2%
Equity CAGR 5Y	39%
Earnings CAGR 3Y	14%
Sales CAGR 3Y	14%
Equity CAGR 3Y	15%
Market Cap	$10.05B
Revenue	$34.69B
Dividend Yield	1%
Payout Ratio	7%
Assets	$23.26B
Cash	$398.60M
Shares Outstanding	26.6M
Earnings Score	94%
Moat Score	77%
Working Capital	1.23B
Current Ratio	1.18
Gross Profit	$5.45B
Shares Growth 3y	-2%
Equity Growth QoQ	4%
Equity Growth YoY	10%

Assets & ROA

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Stockholders Equity & ROE

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Lithia Motors is a retailer of new and used vehicles and related services. The company offers 40 brands of vehicles at 278 stores in 25 states at year-end 2021 and entered Canada in mid-2021 with the purchase of Pfaff Automotive. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the U.S. and we expect more deals over time in Canada or perhaps Europe. Annual revenue in 2021 was $22.8 billion and we see over $50 billion possible in 2025. In 2021, new-car sales were about 49% of total revenue. Lithia was founded in 1946, went public in 1996, and is now one of the largest U.S. auto dealerships. It is based in Medford, Oregon.

SEC Filings

Direct access to Lithia Motors Inc (LAD) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Lithia Motors Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Lithia Motors Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 29%

Stability 83%

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Lithia Motors Inc Discounted Cash Flow

Fully customizable DCF calculator online for Lithia Motors Inc.

Years

Calculation mode

= -$4.8B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$270M	-$293M	-$318M	-$345M	-$374M	-$405M	-$439M	-$476M	-$517M	-$560M	-$608M	-$6.1B
DCF		-$266M	-$263M	-$259M	-$255M	-$252M	-$248M	-$245M	-$241M	-$238M	-$234M	-$2.3B
Value	-$4.8B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	3%	2%	2%	2%	2%	2%	4%	5%	4%	3%	2%
ROA	-	9%	9%	9%	8%	8%	9%	15%	13%	9%	7%
ROE	-	22%	22%	23%	22%	18%	18%	23%	24%	16%	12%

Bad Net Margins (2.17%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-71.43	-57.14	24.68	3.91	4.06	5.81	2.22	-6.06	-10.34	-
Debt over Equity	1	0.78	0.89	0.99	1.18	1.04	0.82	0.74	1.06	1.16	-
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	46%	10%	16%	17%	7%	4%	74%	23%	10%	29%
Earnings YoY growth	-	32%	8%	24%	8%	2%	73%	125%	18%	-20%	32%
Equity YoY growth	-	23%	10%	19%	11%	23%	81%	74%	13%	20%	39%
FCF YoY growth	-	-84%	58%	-405%	732%	4%	-0%	310%	-159%	-23%	2%