Lithia Motors Stock Analysis, Valuation (NYSE:LAD)

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$85.51 $0.51 (0.6%) LAD stock closing price Aug 14, 2018 (Closing)

View the Lithia Motors stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for LAD stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Lithia Motors Inc Stock Rating 2.8/5

Amigobulls LAD stock analysis takes into account various financial ratios like relative valuation, Lithia Motors revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Lithia Motors dividend performance. We compare Lithia Motors valuation with its sector peers to gauge relative attractiveness of LAD stock. Based on a company's historical fundamentals we arrive at Lithia Motors stock rating which is indicative of the company's financial performance.

Should you buy LAD stock?

  • Lithia Motors's revenue growth came in at 25.5% in 2018-06.
  • The company saw a significant growth in revenue with a 5 year CAGR of 24.8.
  • The price to earnings multiple of 9.6 is attractive when compared with the sector average PE ratio of 21.4.
  • The lower PS ratio 0.2 for LAD stock versus Retail-Wholesale sector average of 0.8 is a positive for the company.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Lithia Motors at 23.6.

Should you sell LAD stock?

  • Lithia Motors has a debt/equity ratio of 2.85, which is worse than the average in the Retail-Wholesale sector.

Comments on this video and Lithia Motors stock

Investors can use Amigobulls Lithia Motors stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

Lithia Motors revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about LAD stock.