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Is this Large Market Cap Stock target price reasonable for Lithia Motors Inc. (NYSE:LAD)?

The company in question is, Lithia Motors Inc. (NYSE:LAD) currently with a stock price of 95.95 (0.02% today). The market cap for Lithia Motors Inc. is 2427.99, and is in the sector Services, and Auto Dealerships industry. The target price for Lithia Motors Inc. is 105.89. Currently Lithia Motors Inc. is trading with a P/E of 13.69, and a forward P/E of 11.48. Average volume for Lithia Motors Inc. is 300.37 and so far today it is 104693.

Performance in the last year for Lithia Motors Inc. has been -9.15%. For EPS growth, Lithia Motors Inc. has seen a growth of 34.50%, and is looking to grow in the next year to 9.24%. More long term stats show that EPS growth has been 68.10% over the last five years and could be 25.00% for the next five years. Lithia Motors Inc. has seen sales growth quarter over quarter at 6.80%, with EPS growth quarter over quarter at 4.20%. The 20-day simple moving average is 9.41%, with the 200-day simple moving average coming to 14.57%.

Since the IPO date for Lithia Motors Inc. on the 12/18/1996, Lithia Motors Inc. has seen performance year to date to be -9.33%. With Lithia Motors Inc. trading at 95.95, the dividend yield is 1.04%, and the EPS is 7.01.

So could Lithia Motors Inc., be undervalued? Well as said before P/E is 13.69. The PEG is 0.55, P/S is 0.3 and the P/B is at 2.99. The P/cash is 161.87, with P/free cash flow at 224.81.

Lithia Motors Inc. ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 0.2. This is with long term debt/equity at 0.77, and total debt/equity at 2.48.

In terms of margins, Lithia Motors Inc. has a gross margin of 15.10%, an operating margin of 3.80% and a profit margin of 2.20%.Payout ratio for Lithia Motors Inc. is 12.10%. Return on assets come to 5.70% with return on investment coming to 8.00%.

Insider ownership for Lithia Motors Inc., is at 2.00% and institutional ownership comes to *TBA. Outstanding shares are at 25.31. While shares float is 22.99. The float short is currently 11.95%, and short ratio is 9.14.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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