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Stock: LAD
Book Value Per Share: $258.92
EPS: $34.38
Diluted EPS TTM: $33
Dividend Per Share: 2.14
Dividend Yield: 0.66 %
Dividend Payout Ratio: 6%
Price To Sales Ratio TTM: 0.238
Price To Book Ratio: 1.246
PEG Ratio: 0.684
EV To EBITDA: 9.39
P/E Ratio: 10.2
Forward P/E Ratio: 9.41
Ex Dividend Date: 2025-05-09
Dividend Date: 2025-05-23
Current Price: $323.91
Previous Close: $329.04
52 Week Low: $241.39
52 Week High: $404.26
Earning Date (within 30 days): N/A
50 Day MA: $303.07
200 Day MA: $328.72
Link to Yahoo (Financial): LAD
 
* Note: Prices are in Million (M) USD.
Description:
Lithia Motors Inc (LAD) ▼
Lithia Motors, Inc. is an automobile retailer in the United States. The company is headquartered in Medford, Oregon.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $402 M
Debt : $8,171 M
EBITDA : $1,940 M
Net Debt (Debt - Cash): $7,768 M

Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Consumer Cyclical
Industry: Auto & Truck Dealerships

Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 9.42

Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $29 M
Average Revenue: $10,663 M
Free Cash Flow to Revenue : 0 %

Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $36,188 M
Revenue 4 Years Ago (2020-12-31): $13,124 M
Last 5 Years Average Revenue Growth: 35%

Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $27 M
Share Count 5 Years Ago (2020-12-31): $24 M

Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $34.38
Dividend Per Share (DPS): $2
Payout Ratio: 6%
Dividend Yield: 1%

Since company Payout Ratio is less than 50, 2 points assigned.

Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 10%

Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $324
52-Week Low: $241
Threshold Price (15% Above 52-Week Low): $278

Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $8,766 M

Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 20 points to above Lithia Motors Inc (LAD) stock.
Twenty Years Avg PE 10, Fair Value PE 15, Industry Based PE is 12 and Growth based PE is 17. Based on these all values average assigned is 13.50.
Value-Trades has assined P/E value 13.50. Since current year earning per share is $34.38.
The fair value of Lithia Motors Inc (LAD) stock should be (13.50 x $34.38) = $464.13

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