Is Lithia Motors Stock a Good Investment?
Lithia Motors Investment Advice | LAD |
- Examine Lithia Motors' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Lithia Motors' leadership team and their track record. Good management can help Lithia Motors navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Retail space and any emerging trends that could impact Lithia Motors' business and its evolving consumer preferences.
- Compare Lithia Motors' performance and market position to its competitors. Analyze how Lithia Motors is positioned in terms of product offerings, innovation, and market share.
- Check if Lithia Motors pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Lithia Motors' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Lithia Motors stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Lithia Motors is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Lithia Motors Stock
Researching Lithia Motors' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.13. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Lithia Motors has Price/Earnings To Growth (PEG) ratio of 0.61. The entity recorded earning per share (EPS) of 31.7. The firm last dividend was issued on the 9th of May 2025. Lithia Motors had 1:10 split on the 16th of January 2018.
To determine if Lithia Motors is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Lithia Motors' research are outlined below:
| Lithia Motors generated a negative expected return over the last 90 days | |
| Over 99.0% of the company shares are owned by institutional investors | |
| On 21st of March 2025 Lithia Motors paid $ 0.53 per share dividend to its current shareholders |
Lithia Motors uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Lithia Motors. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Lithia Motors' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 14th of February 2024 Upcoming Quarterly Report | View | |
| 17th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Lithia Motors' market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 7.62 B.Lithia Motors' profitablity analysis
The company has Net Profit Margin of 0.02 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.04 %, which entails that for every 100 dollars of revenue, it generated $0.04 of operating income.Determining Lithia Motors' profitability involves analyzing its financial statements and using various financial metrics to determine if Lithia Motors is a good buy. For example, gross profit margin measures Lithia Motors' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Lithia Motors' profitability and make more informed investment decisions.
Please note, the presentation of Lithia Motors' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Lithia Motors' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Lithia Motors' management manipulating its earnings.
Basic technical analysis of Lithia Stock
As of the 4th of May, Lithia Motors secures the Standard Deviation of 2.93, risk adjusted performance of (0.16), and Mean Deviation of 1.98. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lithia Motors, as well as the relationship between them. Please verify Lithia Motors information ratio, and the relationship between the coefficient of variation and value at risk to decide if Lithia Motors is priced some-what accurately, providing market reflects its recent price of 296.5 per share. Given that Lithia Motors has information ratio of (0.06), we recommend you to check Lithia Motors's last-minute market performance to make sure the company can sustain itself at a future point.Lithia Motors' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Lithia Motors insiders, such as employees or executives, is commonly permitted as long as it does not rely on Lithia Motors' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Lithia Motors insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Lithia Motors' Outstanding Corporate Bonds
Lithia Motors issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Lithia Motors uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Lithia bonds can be classified according to their maturity, which is the date when Lithia Motors has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US536797AG85 Corp BondUS536797AG85 | View | |
| LITHIA MTRS INC Corp BondUS536797AF03 | View | |
| Lithia Motors 4625 Corp BondUS536797AE38 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Lithia Motors' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Lithia Motors' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.16) | |||
| Market Risk Adjusted Performance | 0.9072 | |||
| Mean Deviation | 1.98 | |||
| Coefficient Of Variation | (1,026) | |||
| Standard Deviation | 2.93 | |||
| Variance | 8.61 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.33) | |||
| Total Risk Alpha | (0.09) | |||
| Treynor Ratio | 0.8972 | |||
| Maximum Drawdown | 17.51 | |||
| Value At Risk | (4.36) | |||
| Potential Upside | 4.49 | |||
| Skewness | 0.8783 | |||
| Kurtosis | 3.81 |
| Risk Adjusted Performance | (0.16) | |||
| Market Risk Adjusted Performance | 0.9072 | |||
| Mean Deviation | 1.98 | |||
| Coefficient Of Variation | (1,026) | |||
| Standard Deviation | 2.93 | |||
| Variance | 8.61 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.33) | |||
| Total Risk Alpha | (0.09) | |||
| Treynor Ratio | 0.8972 | |||
| Maximum Drawdown | 17.51 | |||
| Value At Risk | (4.36) | |||
| Potential Upside | 4.49 | |||
| Skewness | 0.8783 | |||
| Kurtosis | 3.81 |
Consider Lithia Motors' intraday indicators
Lithia Motors intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Lithia Motors stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Lithia Motors time-series forecasting models is one of many Lithia Motors' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Lithia Motors' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Lithia Stock media impact
There is far too much social signal, news, headlines, and media speculation about Lithia Motors that are available to investors today. This information is accessible both publicly - through Lithia Motors' media outlets and privately, via word of mouth or internal channels. However, regardless of the source, the sheer volume of Lithia-related data is difficult to distill into actionable insights, especially for investors who are not well-versed in the rapidly evolving tools and techniques of investment management.
A primary focus of Lithia Motors news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Lithia Motors relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Lithia Motors' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Lithia Motors alpha.
Lithia Motors Corporate Directors
| Shauna McIntyre | Independent Director | Profile | |
| David Robino | Independent Director | Profile | |
| Kenneth Roberts | Independent Director | Profile | |
| Louis Miramontes | Lead Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lithia Motors. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For information on how to trade Lithia Stock refer to our How to Trade Lithia Stock guide.You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Is Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lithia Motors. If investors know Lithia will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lithia Motors listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Lithia Motors is measured differently than its book value, which is the value of Lithia that is recorded on the company's balance sheet. Investors also form their own opinion of Lithia Motors' value that differs from its market value or its book value, called intrinsic value, which is Lithia Motors' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lithia Motors' market value can be influenced by many factors that don't directly affect Lithia Motors' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Lithia Motors' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Lithia Motors is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lithia Motors' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.