Analysts at Defense World Rate Lithia Motors, as a ‘Hold’
June 20, 2023
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Lithia Motors ($NYSE:LAD), Inc., a vehicle retailer and services group located in the United States and Canada, has recently been rated as a “Hold” by analysts at Defense World.
In addition, the report also mentioned that gross margins had dropped, indicating a decrease in profitability. It offers used and new vehicles from a variety of brands. The company also provides automotive service and aftermarket parts, as well as vehicle financing and insurance products. Analysts at Defense World remain skeptical about the company’s performance and are not convinced that Lithia Motors, Inc. can gain market share in the near future. Despite the disappointing third-quarter numbers, the company remains committed to delivering strong customer service, quality products, and cost-effective solutions. As a result, analysts at Defense World believe that keeping a “Hold” rating on the stock is the best option at this time.
Price History
Analysts at Defense World have recently rated Lithia Motors, Inc. as a ‘Hold’. On Monday, the company’s stock opened at $244.2 and closed at $243.2, a decrease of 1.5% from its previous closing price of 246.8. This rating is largely based on the current performance of the company, as well as the market’s outlook for the future. Despite this decline in its stock price, industry analysts generally remain positive about the company’s growth prospects. Lithia Motors is one of the largest automotive retailers in the US, and its revenues have been steadily increasing in recent years.
With a wide selection of vehicles and services, the company is well-positioned to capitalize on growing consumer demand for new and used cars. As such, analysts believe that Lithia Motors is a relatively safe investment for investors in the short-term. Although the stock may not show huge gains in the near future, it is expected to hold its value and could potentially increase in price depending on how the automotive market fares over time. As such, Defense World recommends investors to hold on to their shares of LITHIA MOTORS and wait to see how it performs in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lithia Motors. More…
| Total Revenues | Net Income | Net Margin |
| 28.46k | 1.14k | 3.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lithia Motors. More…
| Operations | Investing | Financing |
| -685.4 | -1.33k | 2.04k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lithia Motors. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.42k | 10.94k | 190.7 |
Key Ratios Snapshot
Some of the financial key ratios for Lithia Motors are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.1% | 54.9% | 6.2% |
| FCF Margin | ROE | ROA |
| -3.3% | 21.3% | 6.8% |
Analysis
At GoodWhale we strive to provide investors with a full assessment of a company’s financials before they make an investment. While there are no major red flags in the company’s balance sheet or financial journal, we have detected two risk warnings that investors should be aware of. To gain more insight into our findings, please register on goodwhale.com. We are confident that our analysis will help investors make an informed decision when considering whether or not to invest in LITHIA MOTORS. More…
Peers
Lithia Motors Inc, AutoNation Inc, Group 1 Automotive Inc, and Penske Automotive Group Inc are all leading automotive retailers. They each have a large network of dealerships and offer a wide range of vehicles. These companies compete in terms of price, selection, and customer service.
– AutoNation Inc ($NYSE:AN)
AutoNation is the largest automotive retailer in the United States. The company operates over 300 dealerships across the country, selling both new and used cars. AutoNation is also a leading provider of vehicle finance and insurance products. The company’s market cap is 5.47B as of 2022, and its ROE is 56.13%. AutoNation is a publicly traded company, listed on the New York Stock Exchange under the ticker symbol AN.
– Group 1 Automotive Inc ($NYSE:GPI)
Group 1 Automotive Inc is a publicly traded automotive retailer that offers a range of automotive products and services, including new and used vehicles, financing, insurance, and parts and service. As of 2022, the company had a market capitalization of 2.53 billion and a return on equity of 32.9%. Group 1 Automotive is a leading provider of automotive products and services in the United States, with over 100 dealerships across the country. The company offers a wide variety of vehicles, including sedans, SUVs, trucks, and vans. In addition to selling vehicles, Group 1 Automotive also provides financing, insurance, and parts and service. The company has a strong reputation for customer service and is committed to providing a positive experience for all of its customers.
– Penske Automotive Group Inc ($NYSE:PAG)
Penske Automotive Group Inc is an American automotive retailer with a market cap of 7.28B as of 2022 and a ROE of 29.75%. The company operates in the United States, United Kingdom, and Australia. It sells and services vehicles through its dealerships.
Summary
Lithia Motors, Inc., a leading automotive retailer in the United States, has recently been assigned an average rating of “Hold” from analysts at Defense World. This rating reflects the analysts’ opinion that now may not be the best time to invest in the company.
However, they also noted that Lithia Motors has solid potential in terms of future growth and profitability. They recommend investors keep a close eye on the stock and wait for a more attractive entry point. Overall, this rating highlights the company’s current financial standing and potential for future growth.
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