Lithia Motors, Inc. (LAD), Discounted Cash Flow Valuation

Compagnie de Lithia Motors, Inc. (LAD) Profile

US | Consumer Cyclical | Auto - Dealerships | NYSE
283.15 -7.73 (-2.66%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
7.44B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
36.19B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
802.1M
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
26.6M
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
29.69
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
11.77
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
0.60%
Exchange Name of stock exchange where the trading item trades.
NYSE
Avg Volume The average number of shares traded each day over the past 30 days.
398.97K
Open The opening trade price over the trading day.
283.73
Previous Close The last closing price.
290.88
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
1.61
1 day delta The range between the high and low prices over the past day.
278.31-288.58
52 weeks The range between the high and low prices over the past 52 weeks.
243-405.68

Total Valuation

Lithia Motors, Inc. has a market cap or net worth of 7.44B. The enterprise value is 9.09B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
7.44B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
9.09B

Valuation Ratios

The trailing PE ratio is 9.43. Lithia Motors, Inc.'s PEG ratio is 8.94.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
9.43
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
0.21
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
1.13
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
-23.94
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
8.94

Enterprise Valuation

The stock's EV/EBITDA ratio is 4.5, with a EV/FCF ratio of -29.25.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
0.25
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
4.5
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
90.79
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
-29.25

Financial Efficiency

Return on equity (ROE) is 12.34% and return on invested capital (ROIC) is 7.27%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
12.34%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
3.47%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
7.27%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
1.56
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
5.2

Margins

Trailing 12 months gross margin is 15.04%, with operating and profit margins of 4.37% and 2.22%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
15.04%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
4.37%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
2.98%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
2.22%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
5.58%

Income Statement

In the last 12 months, Lithia Motors, Inc. had revenue of 36.19B and earned 802.1M in profits. Earnings per share (EPS) was 29.69.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
36.19B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
5.44B
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
1.58B
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
1.08B
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
802.1M
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
2.02B
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
1.66B
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
29.69

Financial Position

The company has a trailing 12 months (ttm) current ratio of 1.19, with a ttm Debt / Equity ratio of 0.31.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
1.19
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
0.28
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0.31
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
0.68

Dividends & Yields

This stock pays an annual dividend of 2.12, which amounts to a dividend yield of 0.75%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
2.12
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
0.75%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
10.61%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
-4.18%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
11.47%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
7.04%

Balance Sheet

The company has 402.2M in cash and 2.05B in debt, giving a net cash position of -1.65B.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
402.2M
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
2.05B
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
-1.65B
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
6.68B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
250.16
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
1.22B

Cash Flow

In the last 12 months, operating cash flow of the company was 100.1M and capital expenditures -351.4M, giving a free cash flow of -310.7M.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
100.1M
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-351.4M
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
-310.7M
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
-11.64

Lithia Motors, Inc. News

Apr 15, 2025 - prnewswire.com
Lithia & Driveway (LAD) Announces Chief Operating Officer Transition
MEDFORD, Ore. , April 15, 2025 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) has announced today that Adam Chamberlain will transition from his current role as Executive Vice President and Chief Operating Officer effective June 1, 2025 to join Mercedes-Benz as CEO of Mercedes-Benz USA....[read more]
Apr 1, 2025 - prnewswire.com
Lithia & Driveway (LAD) Schedules Release of First Quarter 2025 Results
MEDFORD, Ore. , April 1, 2025 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today announced its first quarter 2025 earnings will be released before the market opens on Wednesday, April 23, 2025....[read more]
Mar 31, 2025 - seekingalpha.com
Lithia Motors: A High-Quality Compounder That Looks To Be On Sale
Lithia & Driveway, an American automotive dealership group, is now an $8 billion (by market cap) car dealership aggregator. The company has increased its dividend for 15 consecutive years, with a 10-year dividend growth rate of 13.1%. Lithia & Driveway increased its revenue from $7.9 billion in FY 2015 to $36.2 billion in FY 2024, a compound annual growth rate of 18.4%....[read more]
Mar 5, 2025 - zacks.com
Lithia Expands Presence in Southwest Region, Boosts Share Repurchase
LAD acquires Elk Grove Subaru in California to expand its presence in the Southwest region and boosts its share repurchase authorization by $350 million....[read more]
Mar 4, 2025 - prnewswire.com
Lithia & Driveway (LAD) Expands Retail Network in Southwest Region and Announces Share Repurchase Authorization Increase
MEDFORD, Ore. , March 4, 2025 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) announced the acquisition today of Elk Grove Subaru in Elk Grove, California, adding an additional store to its network in the Sacramento area, and continuing to strengthen its density in the Southwest region....[read more]
Feb 13, 2025 - zacks.com
Lithia Q4 Earnings Surpass Expectations, Revenues Increase Y/Y
LAD's fourth-quarter 2024 earnings and sales surpass the Zacks Consensus Estimate and revenues rise year-over-year....[read more]
Feb 12, 2025 - seekingalpha.com
Lithia Motors, Inc. (LAD) Q4 2024 Earnings Call Transcript
Lithia Motors, Inc. (NYSE:LAD ) Q4 2024 Earnings Conference Call February 12, 2025 10:00 AM ET Company Participants Jardon Jaramillo - Senior Director, IR Bryan DeBoer - CEO, President & Director Adam Chamberlain - EVP & COO Tina Miller - SVP & CFO Conference Call Participants Ryan Sigdahl - Craig-Hallum Bret Jordan - Jefferies Rajat Gupta - JPMorgan Chris Bottiglieri - BNP Paribas Jeff Lick - Stephens John Murphy - Bank of America Merrill Lynch Colin Langan - Wells Fargo Ron Josey - Citi David ...[read more]
Feb 12, 2025 - zacks.com
Lithia Motors (LAD) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
The headline numbers for Lithia Motors (LAD) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals....[read more]
Feb 12, 2025 - zacks.com
Lithia Motors (LAD) Tops Q4 Earnings and Revenue Estimates
Lithia Motors (LAD) came out with quarterly earnings of $7.79 per share, beating the Zacks Consensus Estimate of $7.01 per share. This compares to earnings of $8.24 per share a year ago....[read more]
Feb 12, 2025 - prnewswire.com
Lithia & Driveway (LAD) Reports Record Fourth Quarter Revenue of $9.2 billion, a 20% Increase, and the First Profitable Year for Finance Operations
Announces Dividend of $0.53 per Share for Fourth Quarter MEDFORD, Ore. , Feb. 12, 2025 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today reported the highest fourth quarter revenue in company history and the first profitable year for Financing Operations, which includes Driveway Finance Corporation....[read more]

Lithia Motors, Inc. Details

Country US
City Medford
Address 150 North Bartlett Street
Ticker Symbol LAD
Exchange New York Stock Exchange
IPO Date Dec 18, 1996
CEO Mr. Bryan B. DeBoer
Sector Consumer Cyclical
Industry Auto - Dealerships
Employees 30K

Lithia Motors, Inc. Company Description

Lithia Motors, Inc. operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Luxury. It offers new and used vehicles; vehicle financing services; warranties, insurance contracts, and vehicle and theft protection services; and automotive repair and maintenance services, as well as sells vehicle body and parts under the Driveway and GreenCars brand names. As of February 18, 2022, the company operated through 278 stores. It also offers its products online through 300 websites. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.

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