Lithia Motors Intrinsic Stock Value – Analysts Recommend ‘Hold’ on Lithia Motors, Stock
November 7, 2023
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Lithia Motors ($NYSE:LAD), Inc. (NYSE:LAD) is a publicly-traded company that operates as one of the largest automotive retailers in the United States. Recently, analysts have given an average recommendation of “Hold” to Lithia Motors, Inc. stock. Analysts cite a number of factors that have led to their recommendation. While the company has seen positive revenue and earnings growth over the past few years, the auto retail market is becoming increasingly competitive.
Additionally, higher interest rates could lead to fewer car sales due to decreased consumer purchasing power. There are also increasing costs associated with complying with new environmental regulations. Furthermore, the company’s debt levels remain relatively high, which could limit any further investment opportunities. Despite these challenges, analysts believe there are opportunities for Lithia Motors to improve its market position in the future. The company has recently launched new e-commerce platforms that could help it reach potential customers more effectively. Additionally, Lithia Motors has a strong market presence in parts and services that should help insulate it from downturns in car sales. Finally, the company’s ability to access capital markets should allow it to pursue acquisition opportunities that could further strengthen its position in the marketplace.
Price History
On Friday, analysts recommended a ‘Hold’ rating on Lithia Motors, Inc. stock. This was based on the stock’s performance for the day, which opened at $259.6 and closed at $266.2, up by 4.5% from the previous closing price of $254.6. Investors are hopeful that this steady growth will continue for the stock in the near future. 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 |
| 30.31k | 1.03k | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lithia Motors. More…
| Operations | Investing | Financing |
| -269.8 | -1.55k | 1.86k |
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 |
| 18.27k | 12.2k | 217.9 |
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 |
| 34.5% | 41.3% | 6.0% |
| FCF Margin | ROE | ROA |
| -1.7% | 19.4% | 6.2% |
Analysis – Lithia Motors Intrinsic Stock Value
GoodWhale analyzed LITHIA MOTORS‘s fundamentals and found that its intrinsic value is around $407.9, calculated by our proprietary Valuation Line. This suggests that the stock is currently undervalued, as it is being traded at $266.2 – 34.7% lower than its intrinsic value. As a result, LITHIA MOTORS presents investors with an attractive opportunity to buy shares at a discounted price. With detailed financial analysis, GoodWhale can provide insights to investors into the company’s health and help them make informed decisions when investing in LITHIA MOTORS. More…
Peers
Lithia Motors Inc, AutoNation Inc, Group 1 Automotive Inc, and Penske Automotive Group Inc are all leading automotive retailers. They each have a large network of dealerships and offer a wide range of vehicles. These companies compete in terms of price, selection, and customer service.
– AutoNation Inc ($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. is a publicly traded auto retailer with a current average recommendation of “Hold” from analysts. Despite this hold rating, the stock price moved up the same day. Analysts have mixed opinions on the company, with some expressing concern about the company’s ability to continue to sustain its growth. On the flip side, there are those that point to the long-term potential of the business and its ability to capitalize on opportunities.
Investors should carefully consider the risks and rewards before investing in Lithia Motors, Inc.. It is important to understand the competitive landscape and to remain aware of the company’s financial performance in order to make an informed decision.
