Lithia Motors Intrinsic Value Calculator – LITHIA MOTORS Reports Profitable FY2022 Q4 Earnings on February 15 2023.
March 24, 2023
Earnings Overview
On February 15, 2023, LITHIA MOTORS ($NYSE:LAD) reported its fourth-quarter earnings results for the fiscal year 2022. Total revenue had decreased by 14.9% year-over-year, to USD 247.7 million as of December 31, 2022. Nevertheless, the company had a 10.8% increase in net income from the same period in 2021, amounting to USD 6990.2 million.
Transcripts Simplified
Looking ahead, Lithia expects new and used vehicle same store sales growth in the mid-to-high single digits in 2021, service and body shop growth in the low-to-mid single digits and F&I gross profit growth in the mid-teens. Lithia remains focused on capitalizing on growth opportunities while continuing to efficiently manage its balance sheet and cost structure to drive long-term value creation for shareholders.
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 |
| 28.19k | 1.25k | 4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lithia Motors. More…
| Operations | Investing | Financing |
| -610.1 | -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 |
| 15.01k | 9.76k | 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 |
| 30.5% | 56.7% | 6.7% |
| FCF Margin | ROE | ROA |
| -3.2% | 23.3% | 7.9% |
Share Price
On Wednesday, February 15th 2023, LITHIA MOTORS reported their Q4 FY2022 earnings with disappointing results. Despite the company’s stock opening at $262.3 at the start of the trading day, it closed at $258.1, a drop of 8.2% from the last closing price of 281.3. The company reported that the lower-than-forecasted sales and earnings could be attributed to unexpected industry headwinds such as increased competition, higher commodity prices, and supply chain disruptions. Despite these challenges, LITHIA MOTORS reported a strong balance sheet with an increase in overall cash levels and no long-term debt. Live Quote…
Analysis – Lithia Motors Intrinsic Value Calculator
At GoodWhale, we have conducted a thorough analysis of LITHIA MOTORS‘ fundamentals. After crunching the numbers, our proprietary Valuation Line has determined that the intrinsic value of LITHIA MOTORS’ share is around $401.1. That being said, the current market price of LITHIA MOTORS stock is $258.1, making it significantly undervalued by 35.6%. This creates a valuable opportunity for potential investors to capitalize on this discrepancy and purchase the stock at a discount. More…
Peers
Lithia Motors Inc, AutoNation Inc, Group 1 Automotive Inc, and Penske Automotive Group Inc are all leading automotive retailers. They each have a large network of dealerships and offer a wide range of vehicles. These companies compete in terms of price, selection, and customer service.
– AutoNation Inc ($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. reported their earnings results for the fourth quarter of fiscal year 2022 on February 15, 2023. Total revenue decreased by 14.9% year-over-year to $247.7 million, while net income increased by 10.8% to $6990.2 million.
However, the stock price dropped on the same day. Investors should analyze this data carefully before making an investment decision in Lithia Motors as it may impact the company’s future earnings performance. It is important to consider factors such as the company’s financials, competitive environment and debt levels when evaluating a stock before investing.
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