GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Lithia Motors Inc (NYSE:LAD) » Definitions » Piotroski F-Score

LAD (Lithia Motors) Piotroski F-Score : 4 (As of Oct. 31, 2024)


View and export this data going back to 1996. Start your Free Trial

What is Lithia Motors Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lithia Motors has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Lithia Motors's Piotroski F-Score or its related term are showing as below:

LAD' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 8
Current: 4

During the past 13 years, the highest Piotroski F-Score of Lithia Motors was 8. The lowest was 2. And the median was 5.


Lithia Motors Piotroski F-Score Historical Data

The historical data trend for Lithia Motors's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lithia Motors Piotroski F-Score Chart

Lithia Motors Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 6.00 7.00 3.00 2.00

Lithia Motors Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 2.00 2.00 3.00 4.00

Competitive Comparison of Lithia Motors's Piotroski F-Score

For the Auto & Truck Dealerships subindustry, Lithia Motors's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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's Piotroski F-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Lithia Motors's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 213.5 + 162.6 + 214.2 + 209.1 = $799 Mil.
Cash Flow from Operations was -295.2 + 292.4 + -148.4 + 219.3 = $68 Mil.
Revenue was 7674.3 + 8561.8 + 9231.8 + 9221 = $34,689 Mil.
Gross Profit was 1260.7 + 1335.2 + 1423.9 + 1430.4 = $5,450 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(18269.8 + 19632.5 + 22180 + 23205.2 + 23261.5) / 5 = $21309.8 Mil.
Total Assets at the begining of this year (Sep23) was $18,270 Mil.
Long-Term Debt & Capital Lease Obligation was $8,809 Mil.
Total Current Assets was $7,893 Mil.
Total Current Liabilities was $6,664 Mil.
Net Income was 247.6 + 228.7 + 297.2 + 261.5 = $1,035 Mil.

Revenue was 6946.5 + 6973.8 + 8111.5 + 8277 = $30,309 Mil.
Gross Profit was 1209.1 + 1211.5 + 1385.1 + 1371.3 = $5,177 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(14074.5 + 15006.6 + 16421.4 + 17682.7 + 18269.8) / 5 = $16291 Mil.
Total Assets at the begining of last year (Sep22) was $14,075 Mil.
Long-Term Debt & Capital Lease Obligation was $7,013 Mil.
Total Current Assets was $5,818 Mil.
Total Current Liabilities was $4,375 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lithia Motors's current Net Income (TTM) was 799. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lithia Motors's current Cash Flow from Operations (TTM) was 68. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=799.4/18269.8
=0.04375527

ROA (Last Year)=Net Income/Total Assets (Sep22)
=1035/14074.5
=0.07353725

Lithia Motors's return on assets of this year was 0.04375527. Lithia Motors's return on assets of last year was 0.07353725. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Lithia Motors's current Net Income (TTM) was 799. Lithia Motors's current Cash Flow from Operations (TTM) was 68. ==> 68 <= 799 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=8808.6/21309.8
=0.41335911

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=7012.7/16291
=0.43046467

Lithia Motors's gearing of this year was 0.41335911. Lithia Motors's gearing of last year was 0.43046467. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=7893.1/6664.1
=1.184421

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=5818.2/4375.3
=1.3297831

Lithia Motors's current ratio of this year was 1.184421. Lithia Motors's current ratio of last year was 1.3297831. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Lithia Motors's number of shares in issue this year was 26.8. Lithia Motors's number of shares in issue last year was 27.6. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5450.2/34688.9
=0.15711654

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5177/30308.8
=0.17080848

Lithia Motors's gross margin of this year was 0.15711654. Lithia Motors's gross margin of last year was 0.17080848. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=34688.9/18269.8
=1.89870168

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=30308.8/14074.5
=2.15345483

Lithia Motors's asset turnover of this year was 1.89870168. Lithia Motors's asset turnover of last year was 2.15345483. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+0+1+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lithia Motors has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Lithia Motors  (NYSE:LAD) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Lithia Motors Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Lithia Motors's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Lithia Motors Business Description

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 over 50 brands of vehicles at nearly 500 stores globally across the US, Canada, and UK. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the US and we expect more deals over time in the US and, at times, abroad. Annual revenue in 2023 was $31 billion and we see over $50 billion possible in a few years. The US was 90% of 2023 revenue and the UK second at 6%, the latter should rise to around 20% with the 2024 Pendragon acquisition. In 2023, new-car sales were about 49% of total revenue. Lithia was founded in 1946, went public in 1996, and is the largest US auto dealer. It is based in Medford, Oregon.
Executives
Sidney B Deboer director, officer: Executive Chairman 234 VISTA ST., ASHLAND OR 97520
Louis Miramontes director 150 N. BARTLETT ST., MEDFORD OR 97501
Shauna Mcintyre director 150 N. BARTLETT STREET, MEDFORD OR 97501
Bryan B Deboer director, officer: Chief Executive officer 150 N. BARTLETT STREET, MEDFORD OR 97501
Tina Miller officer: VP, CAO & Principal Fin. Off. 150 N. BARTLETT ST., MEDFORD OR 97501
Chris Holzshu officer: Sr. Vice President & CFO 150 N. BARTLETT STREET, MEDFORD OR 97501
David Stork officer: Senior Vice President 150 N. BARTLETT STREET, MEDFORD OR 97501
George N Hines officer: SVP, Chief Tech. & Innov. Off. 150 N. BARTLETT ST., MEDFORD OR 97501
Loretz Congdon Stacy director C/O CORE-MARK HOLDING CO. INC., 395 OYSTER POINT BLVD., SUITE 415, SOUTH SAN FRANCISCO CA 94080
Gary M Glandon officer: Chief People Officer C/O LITHIA MOTORS, INC., 150 NORTH BARTLETT STREET, MEDFORD OR 97501
James E. Lentz director C/O LITHIA MOTORS INC., 150 NORTH BARTLETT STREET, MEDFORD OR 97501
Scott Hillier officer: Sr. VP of Operations 150 N. BARTLETT STREET, MEDFORD OR 97501
Kenneth E Roberts director 150 N. BARTLETT ST., MEDFORD OR 97501
Marguerite Celeste officer: Senior Vice President 150 N BARTLETT STREET, MEDFORD OR 97501
Susan O Cain director 150 NORTH BARTLETT STREET, MEDFORD OR 97501

Lithia Motors Headlines