Lithia Motors’ third-quarter adjusted diluted earnings per share of $10.34 beat the $9.77 LSEG consensus, and the company announced a 7% increase to its quarterly dividend to $0.75 per share. Management said share repurchases remain attractive, and third-quarter buybacks totaled about $84.9 million.
Lithia’s growth runway looks very long to us; acquisitions are opening up new areas of the US, and international expansion has started by entering Canada in 2021 and the UK in 2023.
Lithia could need additional capital to fund expansion. In addition, it will face increased competition for acquisitions now that it will operate in large cities.
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Metric
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LAD
|
KMX
|
PAG
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.01 | 14.44 | 16.63 |
Price/Book Value | 0.89 | 1.16 | 2.39 |
Price/Sales | 0.16 | 0.27 | 0.42 |
Price/Cash Flow | 4.49 | 2.61 | 13.34 |
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Metric
|
LAD
|
KMX
|
PAG
|
|---|---|---|---|
Quick Ratio | 0.18 | 0.18 | 0.17 |
Current Ratio | 1.00 | 2.33 | 0.98 |
Interest Coverage | 1.53 | −0.57 | 5.67 |
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Metric
|
LAD
|
KMX
|
PAG
|
|---|---|---|---|
Return on Assets (Normalized) | 3.17% | 1.90% | 5.02% |
Return on Equity (Normalized) | 12.05% | 8.17% | 15.73% |
Return on Invested Capital (Normalized) | 4.52% | −0.45% | 7.59% |
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1-Day Chart
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United States