Home Sectors Consumer Cyclical Stock in the Spotlight: Lithia Motors (NYSE: LAD)

Stock in the Spotlight: Lithia Motors (NYSE: LAD)


Lithia Motors trades as part of the consumer cyclical sector and is part of the autos industry. The company CEO is Bryan B. Deboer. Lithia Motors Inc acts as a retailer of new and used vehicles and related services. The company also provides vehicle maintenance, warranty, paint, and repair services. It also helps its customers to arrange for financing new vehicles.

Previous Intraday Trading Performance:

The LAD stock showed a previous change of 0.10% with an open at 118.40 and a close of 118.12. It reached an intraday high of 118.40 and a low of 116.10.

SeekingAlpha:  Lithia Motors Continues To Perform, But It May Be Time To Sell


The stock has a market cap of $2.7b with 23.1m shares outstanding, of which the float is 22.3m shares. Trading volume reached 263,425 shares compared to its average volume of 203,985 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Lithia Motors shares returned 1.32% and in the past 30 trading days it returned 4.88%. Over three months, it changed 34.32%. In one year it has changed 17.29% and within that year its 52-week high was 121.96 and its 52-week low was 67.90. LAD stock is 73.96% above its 52 Week Low.

Our calculations show a 200 day moving average of 89.54 and a 50 day moving average of 109.37. Currently LAD stock is trading 31.92% above its 200 day moving average.

SeekingAlpha:  Lithia Motors Continues To Perform, But It May Be Time To Sell


The last annual fiscal EPS for the company was reported at 10.9 that ended on 31st of December 2018, which according to the previous close, that is a PE of 10.84. Based on 4 analyst estimates, the consensus EPS for the next quarter is 2.16. The TTM EPS is 9.99, which comes to a TTM PE of 11.82. Historically, the PE high was 24.10 and the PE low was 7.00. If the stock reached its PE low, that would represent a price of 69.95, which is a decrease of -40.78%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/24/2019): 2.42
4thQtr of 2018 (Reported on 02/13/2019): 2.54
3rdQtr of 2018 (Reported on 10/24/2018): 3.84
2ndQtr of 2018 (Reported on 07/25/2018): 2.44
1stQtr of 2018 (Reported on 04/25/2018): 2.07

The dividend per share is currently 1.20, which is a dividend yield of 1.02%. Also, the payout ratio is 12.01%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 82.21, which means it may be overvalued by -43.68%.

Indicators to Watch:

Short-interest was 3,081,227, which was 13.31% of shares outstanding. The short-interest ratio or days-to-cover ratio was 14.76. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 1.14.

SeekingAlpha:  The Retirees’ Dividend Portfolio – John And Jane’s May Taxable Account Update: Monthly Income Record

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 23.71%, return on assets is 5.23%, profit margin is 2.26%, price-to-sales is 0.23 and price-to-book is 2.18.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 2  :Past Performance Score
 3  :Financial Strength Score
 1  :Future Growth Score
 2  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.