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Upturn AI SWOT - About
Lithia Motors Inc (LAD)
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Upturn Advisory Summary
07/02/2025: LAD (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
16 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $389.41
1 Year Target Price $389.41
| 10 | Strong Buy |
| 3 | Buy |
| 3 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 11.02% | Avg. Invested days 32 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 07/02/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 8.95B USD | Price to earnings Ratio 10.85 | 1Y Target Price 389.41 |
Price to earnings Ratio 10.85 | 1Y Target Price 389.41 | ||
Volume (30-day avg) 16 | Beta 1.46 | 52 Weeks Range 241.39 - 404.26 | Updated Date 07/2/2025 |
52 Weeks Range 241.39 - 404.26 | Updated Date 07/2/2025 | ||
Dividends yield (FY) 0.65% | Basic EPS (TTM) 31.69 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 2.31% | Operating Margin (TTM) 4.43% |
Management Effectiveness
Return on Assets (TTM) 4.5% | Return on Equity (TTM) 13.15% |
Valuation
Trailing PE 10.85 | Forward PE 9.81 | Enterprise Value 22264947833 | Price to Sales(TTM) 0.24 |
Enterprise Value 22264947833 | Price to Sales(TTM) 0.24 | ||
Enterprise Value to Revenue 0.6 | Enterprise Value to EBITDA 9.55 | Shares Outstanding 26030600 | Shares Floating 23175799 |
Shares Outstanding 26030600 | Shares Floating 23175799 | ||
Percent Insiders 1.22 | Percent Institutions 113 |
Upturn AI SWOT
Lithia Motors Inc
Company Overview
History and Background
Lithia Motors Inc. was founded in 1946 in Ashland, Oregon. Initially a single dealership, it has grown through acquisitions and organic expansion to become one of the largest automotive retailers in the United States. It focuses on consolidating dealerships and providing a diversified range of automotive services.
Core Business Areas
- New Vehicle Sales: Sale of new vehicles across various brands. This is a significant revenue driver for Lithia.
- Used Vehicle Sales: Sale of used vehicles, providing customers with more affordable options. Contributes significantly to profit margins.
- Service, Parts, and Collision Repair: Automotive maintenance, repair services, and sale of parts. Provides a stable revenue stream.
- Finance and Insurance: Offering finance and insurance products related to vehicle purchases. Enhances profitability per vehicle sold.
Leadership and Structure
The company is led by Bryan DeBoer (President & CEO). Lithia operates with a decentralized structure, allowing individual dealerships to maintain their unique identities while benefiting from the scale of the larger organization.
Top Products and Market Share
Key Offerings
- New Vehicles: Sale of new vehicles from a variety of manufacturers (e.g., Toyota, Honda, Ford). Market share varies by brand and region but is significant within the markets Lithia operates. Competitors include AutoNation (AN), Group 1 Automotive (GPI), and Penske Automotive Group (PAG).
- Used Vehicles: Sale of used vehicles. Lithia focuses on providing a diverse selection of used vehicles to cater to a wider customer base. Competitors are similar to new vehicles sales plus online used car retailers like Carvana (CVNA) and Vroom (VRM).
- Service and Parts: Automotive maintenance, repair, and parts sales. This segment ensures a stable revenue stream and customer retention. Competitors are independent repair shops, franchise dealerships and national chains like Midas and Firestone.
Market Dynamics
Industry Overview
The automotive retail industry is cyclical and influenced by factors such as economic conditions, interest rates, and consumer confidence. It is undergoing a transformation with the rise of online car sales and electric vehicles.
Positioning
Lithia is positioned as a consolidator in the automotive retail space, acquiring dealerships to expand its geographic footprint and brand portfolio. Their omnichannel approach and emphasis on customer experience give them a competitive edge.
Total Addressable Market (TAM)
The TAM for US automotive retail is approximately $1 trillion annually. Lithia is positioned to capture a greater share through acquisitions and expansion, currently at less than 5% of the TAM.
Upturn SWOT Analysis
Strengths
- Diversified brand portfolio
- Extensive geographic footprint
- Strong acquisition track record
- Omnichannel retail strategy
- Strong financial performance
Weaknesses
- Dependence on economic conditions
- High debt levels due to acquisitions
- Integration challenges with acquired dealerships
- Exposure to manufacturer relations and changing consumer preferences
Opportunities
- Further consolidation of the fragmented automotive retail market
- Expansion into new geographic areas
- Growth in service and parts business
- Increased adoption of online car buying
- Capitalizing on trends of EV adoption
Threats
- Economic downturns
- Increased competition from online retailers
- Changes in manufacturer distribution models
- Rising interest rates
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- AN
- GPI
- PAG
- CVNA
Competitive Landscape
Lithia excels in acquiring and integrating dealerships. Competitors may focus on specific geographic areas or brands. Online retailers present a different competitive dynamic.
Major Acquisitions
DCH Auto Group
- Year: 2014
- Acquisition Price (USD millions): 362.5
- Strategic Rationale: Expanded Lithia's footprint into the Northeast and added luxury brands.
Growth Trajectory and Initiatives
Historical Growth: Lithia has experienced significant growth through acquisitions and organic expansion. Growth rates have varied depending on market conditions and acquisition activity.
Future Projections: Analyst projections would be added here to demonstrate revenue and EPS forecasts.
Recent Initiatives: Recent initiatives include the Driveway.com initiative, designed for selling used cars online. They have also had continued acquisitions in order to consolidate more brands.
Summary
Lithia Motors is a strong consolidator within the automotive retail industry, leveraging acquisitions and a diversified brand portfolio for growth. While its debt levels are notable, its omnichannel approach and expansion strategy present opportunities. Challenges lie in economic conditions and rising online competition. The business is in a stable industry.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Investor Presentations
- Earnings Call Transcripts
- Market Research Reports
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market data and analyst estimates are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Lithia Motors Inc
Exchange NYSE | Headquaters Medford, OR, United States | ||
IPO Launch date 1996-12-18 | CEO, President & Director Mr. Bryan B. DeBoer | ||
Sector Consumer Cyclical | Industry Auto & Truck Dealerships | Full time employees 30000 | Website https://www.lithiadriveway.com |
Full time employees 30000 | Website https://www.lithiadriveway.com | ||
Lithia Motors, Inc. operates as an automotive retailer in the United States, the United Kingdom, and Canada. The company operates in two segments, Vehicle Operations and Financing Operations. It offers a range of products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, financing and insurance products, and aftersales automotive repair and maintenance services. The company provides its products and services through a network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.
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