Lithia Motors Inc (LAD, Financial), a leading player in the Vehicles & Parts industry, is currently trading at $318.75 per share. With a market capitalization of $8.79 billion, the company's stock has seen a gain of 3.77% today, despite a slight dip of -2.07% over the past four weeks. The company's impressive GF Score of 95 out of 100 indicates its high outperformance potential, making it an attractive investment option. The GF Score is a comprehensive stock performance ranking system developed by GuruFocus, which evaluates a company's financial strength, profitability, growth, value, and momentum.
Financial Strength Analysis
Lithia Motors Inc's Financial Strength Rank stands at 5/10. This score is derived from several factors, including its interest coverage of 5.74, indicating a manageable debt burden, and a debt to revenue ratio of 0.34, which is relatively low. The company's Altman Z score of 2.88 further underscores its financial stability.
Profitability Rank Analysis
The company's Profitability Rank is an impressive 9/10. This high score is supported by an operating margin of 5.80%, a Piotroski F-Score of 2, and a consistent profitability trend over the past 10 years. The company's 5-year average operating margin trend stands at 15.00%, indicating a steady uptrend in profitability. Furthermore, the company's Predictability Rank of 4.5 suggests a high likelihood of continued profitability.
Growth Rank Analysis
Lithia Motors Inc boasts a perfect Growth Rank of 10/10, reflecting robust growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 18.70%, and its 3-year revenue growth rate is 22.50%. Additionally, its 5-year EBITDA growth rate stands at 34.10%, indicating strong operational growth.
GF Value Rank Analysis
The company's GF Value Rank is also at the maximum of 10/10. This score is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth, as well as future estimates of the business' performance.
Momentum Rank Analysis
Finally, Lithia Motors Inc's Momentum Rank is 10/10, indicating strong momentum based on the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its competitors, Lithia Motors Inc stands out with its high GF Score. AutoNation Inc (AN, Financial) has a GF Score of 90, Penske Automotive Group Inc (PAG, Financial) has a score of 81, and Carvana Co (CVNA, Financial) has a score of 72. You can find more details about these competitors here.
Conclusion
In conclusion, Lithia Motors Inc's high GF Score of 95, coupled with its strong financial strength, profitability, growth, value, and momentum ranks, make it a promising investment. However, as with any investment, potential investors should conduct their own due diligence before making a decision.
