Lithia Motors Intrinsic Value – LITHIA MOTORS Reports 12% Year-on-Year Increase in Total Revenue for Q2 FY2023

August 9, 2023

☀️Earnings Overview

On July 26th 2023, LITHIA MOTORS ($NYSE:LAD) published their financial results for the 2nd quarter of FY2023 (ending June 30th 2023), which revealed a total revenue of USD 8111.5 million, an increase of 12.0% compared to the same period last year. Unfortunately, their net income decreased by 10.3% year-on-year, amounting to USD 297.2 million.

Analysis – Lithia Motors Intrinsic Value

GoodWhale’s analysis of LITHIA MOTORS‘ fundamentals shows that the fair value of its share should be around $413.8. This value is calculated using our proprietary Valuation Line which takes into account a variety of factors such as the company’s financials, industry trends, and market sentiment. Currently, LITHIA MOTORS stock is being traded at $320.6, indicating that it is undervalued by 22.5%. This could potentially be a good buying opportunity for investors looking to capitalize on the potential upside of the stock. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Lithia Motors. More…

    Total Revenues Net Income Net Margin
    29.33k 1.1k 3.6%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Lithia Motors. More…

    Operations Investing Financing
    -645.7 -1.55k 2.3k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
    17.68k 11.88k 197.52
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • 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
    34.1% 51.5% 6.0%
    FCF Margin ROE ROA
    -3.1% 20.2% 6.2%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items

  • 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.


    Lithia Motors recently reported their Q2 FY2023 earnings results for the period ending June 30 2023, with total revenue increasing 12.0% year-on-year to USD 8111.5 million. Net income, however, decreased 10.3% year-on-year to USD 297.2 million. Despite the decrease in net income, Lithia’s stock price moved up the same day, indicating investor confidence in the company’s future prospects. Looking ahead, investors should continue to monitor Lithia’s financial performance and key indicators to make informed decisions about investing in the company.

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