Alejandro shares his Warren Buffett-style analysis of Lithia Motors.
Lithia is the third largest American new vehicle automotive dealership group behind AutoNation and Penske Automotive Group. Lithia has over 70,000 vehicles across 281 locations and online in the USA and Canada. Their ticker symbol is LAD on the NYSE.
Alejandro explained why Lithia’s performance has been particularly impressive with its significant growth in revenues and gross profit, and why this type of company would fit Buffett-style investment criteria.
He elaborated on how Lithia has been growing rapidly in the last few years, including reviewing sales by segment figures, balance sheet, income statement, and cash flows.
The top brands Lithia sells include: Toyota, Mazda, Honda, Acura, and Chrysler. He reviewed Lithia’s inventory and their use of debt in operations.
Unlike some of Lithia’s competitors, Lithia appears to be doing especially well judging by its recent stock market performance over the last few years.
We welcome audience thoughts and questions on the company we analyzed in this video, please feel free to comment in the video!
It was really kind of Alejandro to present his company analysis of Lithia Motors with me, so thank you!
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