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Lithia Motors GF Value Rank

: 10 (As of Today)
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Lithia Motors has the GF Value Rank of 10.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Auto & Truck Dealerships subindustry, Lithia Motors's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Lithia Motors GF Value Rank Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Lithia Motors's GF Value Rank falls into.



Lithia Motors GF Value Rank Related Terms

Thank you for viewing the detailed overview of Lithia Motors's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Lithia Motors Business Description

Lithia Motors logo
Traded in Other Exchanges
Address
150 N. Bartlett Street, Medford, OR, USA, 97501
Lithia Motors is a retailer of new and used vehicles and related services. The company offers 40 brands of vehicles at 278 stores in 25 states at year-end 2021 and entered Canada in mid-2021 with the purchase of Pfaff Automotive. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the U.S. and we expect more deals over time in Canada or perhaps Europe. Annual revenue in 2021 was $22.8 billion and we see over $50 billion possible in 2025. In 2021, new-car sales were about 49% of total revenue. Lithia was founded in 1946, went public in 1996, and is now one of the largest U.S. auto dealerships. It is based in Medford, Oregon.
Executives
Celeste Marguerite officer: Senior Vice President 150 N BARTLETT STREET MEDFORD OR 97501
Stork David officer: Senior Vice President 150 N. BARTLETT STREET MEDFORD OR 97501
Abrams David C 10 percent owner 222 BERKELEY STREET, 21ST FLOOR BOSTON MA 02116
Abrams Capital Management, Llc 10 percent owner 222 BERKELEY STREET, 21ST FLOOR BOSTON MA 02116
Abrams Capital Management, L.p. 10 percent owner 222 BERKELEY STREET, 21ST FLOOR BOSTON MA 02116
Abrams Capital, Llc 10 percent owner 222 BERKELEY ST., 21ST FLOOR BOSTON MA 02116
Hines George N officer: SVP, Chief Tech. & Innov. Off. 150 N. BARTLETT ST. MEDFORD OR 97501
Mcintyre Shauna director 150 N. BARTLETT STREET MEDFORD OR 97501
Miller Tina officer: VP, CAO & Principal Fin. Off. 150 N. BARTLETT ST. MEDFORD OR 97501
Lewis Erik officer: Senior VP & Chief HR Officer 150 N. BARTLETT STREET MEDFORD OR 97501
Robino David J director 7159 PINE RIDGE DR MEDFORD OR 97504
Miramontes Louis director 150 N. BARTLETT ST. MEDFORD OR 97501
Dobry Thomas officer: Chief Marketing Officer 1725 BRISTOL ST. ASHLAND OR 97520
Lam Shau-wai director 955 ROUTE 9 NORTH SOUTH AMBOY NJ 08879
Liang George Chun-wai officer: Senior Vice President 107 BELLEVUE AVENUE SUMMIT NJ 07901

Lithia Motors Headlines

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