LAD - Lithia Motors: Strong Growth At A Cheap Price

2024-02-09 04:53:45 ET

Summary

• Lithia Motors is an integrated car retail company with multiple services and locations across the US, Canada, and the UK.
• This is a highly integrated business that sells many car-related products and services ranging from car parts to car insurance in addition to selling cars.
• The company has experienced market share growth in both new and used car markets through acquisitions, organic growth, and upselling to existing customers.
• Despite its strong growth, the company's margins could be improved and it currently trades at a discount compared to its own 5-year average valuation.

Lithia Motors (LAD) is an integrated car retail company that is involved in multiple stages of car ownership including new car sales, used car sales, car financing, auto repairs and maintenance, auto parts, auto insurance, auto deliveries, online marketplace and a variety of transportation and fleet solutions. Originally being started as a Chrysler-Dodge dealership in Southern Oregon in 1946, it grew into one of the biggest car retail chains currently owning close to 300 locations and hosting close to 60,000 vehicles....

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