LAD$318.84
$316.61
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Performance
Key Stats
AI LAD Summary
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Powered by LiveAIOverall Analysis
BuyLithia Motors presents a mixed investment profile. Fundamentally, it shows strong revenue and earnings potential driven by market demand, but faces challenges with increasing debt and declining net margins. Technically, the stock is in a downward trend. Thematic exposure to automotive retail and EVs is positive, but competitive pressures and economic sensitivity are key considerations.
Thematic
Lithia Motors is positioned within the automotive retail sector, benefiting from consumer spending on vehicles. Its exposure to the electric vehicle (EV) market through its dealership network is a growing thematic area. However, the cyclical nature of auto sales and increasing competition impact its thematic strength.
Fundamental
Lithia Motors exhibits strong revenue growth and substantial market capitalization. However, concerns arise from a significant increase in debt, a decline in net profit margins, and a substantial decrease in free cash flow in recent periods. While PE ratios have decreased, this is linked to lower earnings, making its valuation somewhat mixed.
Technical
The stock is trading below key moving averages and showing weak momentum. Recent price action indicates a downtrend, with resistance levels posing challenges for upward movement. Short-term indicators are mixed to bearish.
| Factor | Score |
|---|---|
| Automotive Retail Demand | 75 |
| Electric Vehicle (EV) Transition | 70 |
| Competitive Landscape | 50 |
| Aftermarket Services Growth | 80 |
| Factor | Score |
|---|---|
| Valuation | 75 |
| Profitability | 45 |
| Growth | 80 |
| Balance Sheet Health | 35 |
| Cash Flow | 30 |
| Earnings Per Share (EPS) Trends | 60 |
| Dividends | 50 |
| Factor | Score |
|---|---|
| Trend Analysis | 30 |
| Momentum | 35 |
| Volume Confirmation | 40 |
| Support & Resistance | 45 |
| Oscillators | 40 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Attractive Valuation Metrics
The Price-to-Earnings (P/E) TTM of 9.78 is significantly lower than the industry average, suggesting potential undervaluation. The Price-to-Sales (P/S) TTM of 0.3 indicates revenue generation relative to market capitalization is strong.
Consistent EPS Beat Rate
Lithia Motors (LAD) has a strong history of exceeding earnings per share (EPS) estimates, with 8 out of the last 12 quarters showing a positive surprise. The recent Q2 2025 estimate beat of 7.66 vs 7.24 is a positive indicator.
Bearish Points (8)
Significant Increase in Debt
Total debt has substantially increased from $4.96 billion in 2021 to $13.86 billion in 2024, indicating higher financial leverage and potential interest rate sensitivity.
Decreasing Net Margin
The net margin has declined from 4.6% in 2021 to 2.2% in 2024, signaling pressure on profitability due to increasing costs or competitive pricing.
Calendar
May 2025
9
Ex-Dividend Date
May 2025
23
Next Dividend Date
July 2025
29
Next Earnings Date
H: $9.95
A: $9.81
L: $9.68
H: 9.61B
A: 9.56B
L: 9.48B
Profile
Lithia Motors, Inc. operates as an automotive retailer in the United States, the United Kingdom, and Canada. The company operates in two segments, Vehicle Operations and Financing Operations. It offers a range of products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, financing and insurance products, and aftersales automotive repair and maintenance services. The company provides its products and services through a network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.
Seasonals
Price Target
396.02 USD
The 39 analysts offering 1 year price forecasts for LAD have a max estimate of 500.00 and a min estimate of 310.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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