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Lithia Motors (Lithia Motors) Cyclically Adjusted FCF per Share : $7.05 (As of Mar. 2024)


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What is Lithia Motors Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

Lithia Motors's adjusted free cash flow per share for the three months ended in Mar. 2024 was $7.710. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $7.05 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Lithia Motors's average Cyclically Adjusted FCF Growth Rate was -100.00% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 19.40% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Lithia Motors was 73.50% per year. The lowest was -128.90% per year. And the median was -2.50% per year.

As of today (2024-04-27), Lithia Motors's current stock price is $262.72. Lithia Motors's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $7.05. Lithia Motors's Cyclically Adjusted Price-to-FCF of today is 37.27.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Lithia Motors was 2385.60. The lowest was 21.46. And the median was 44.68.


Lithia Motors Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Lithia Motors's Cyclically Adjusted FCF per Share 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 Cyclically Adjusted FCF per Share Chart

Lithia Motors Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.59 3.59 9.58 8.30 6.11

Lithia Motors Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted FCF per Share 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 7.91 7.08 6.96 6.11 7.05

Competitive Comparison of Lithia Motors's Cyclically Adjusted FCF per Share

For the Auto & Truck Dealerships subindustry, Lithia Motors's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Lithia Motors's Cyclically Adjusted Price-to-FCF falls into.



Lithia Motors Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Lithia Motors's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=7.71/129.4194*129.4194
=7.710

Current CPI (Mar. 2024) = 129.4194.

Lithia Motors Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -0.167 100.560 -0.215
201409 2.769 100.428 3.568
201412 -3.340 99.070 -4.363
201503 0.502 99.621 0.652
201506 -1.207 100.684 -1.551
201509 2.396 100.392 3.089
201512 -1.831 99.792 -2.375
201603 0.890 100.470 1.146
201606 0.172 101.688 0.219
201609 3.375 101.861 4.288
201612 -4.871 101.863 -6.189
201703 4.382 102.862 5.513
201706 1.420 103.349 1.778
201709 1.678 104.136 2.085
201712 -5.765 104.011 -7.173
201803 0.274 105.290 0.337
201806 6.305 106.317 7.675
201809 4.193 106.507 5.095
201812 4.064 105.998 4.962
201903 2.073 107.251 2.501
201906 5.894 108.070 7.058
201909 7.479 108.329 8.935
201912 1.603 108.420 1.913
202003 3.409 108.902 4.051
202006 27.461 108.767 32.675
202009 -1.589 109.815 -1.873
202012 -11.127 109.897 -13.104
202103 16.710 111.754 19.351
202106 24.947 114.631 28.165
202109 21.305 115.734 23.824
202112 -8.974 117.630 -9.873
202203 -1.162 121.301 -1.240
202206 -12.773 125.017 -13.223
202209 -11.870 125.227 -12.267
202212 -6.785 125.222 -7.012
202303 -3.196 127.348 -3.248
202306 -11.156 128.729 -11.216
202309 1.989 129.860 1.982
202312 -13.105 129.419 -13.105
202403 7.710 129.419 7.710

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Lithia Motors  (NYSE:LAD) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Lithia Motors's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=262.72/7.05
=37.27

* 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.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Lithia Motors was 2385.60. The lowest was 21.46. And the median was 44.68.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Lithia Motors Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of Lithia Motors's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Lithia Motors (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 45 brands of vehicles at about 350 stores globally including 28 U.S. states at year-end 2022 and entered Canada in mid-2021 with the purchase of Pfaff Automotive and bought Jardine and soon Pendragon in the U.K. in 2023. 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 the U.S. and abroad. Annual revenue in 2022 was $28.2 billion and we see over $50 billion possible in 2025. In 2022, new-car sales were about 46% of total revenue. Lithia was founded in 1946, went public in 1996, and is now the largest U.S. auto dealer. It is based in Medford, Oregon.
Executives
Shauna Mcintyre director 150 N. BARTLETT STREET, MEDFORD OR 97501
Sidney B Deboer director, officer: Executive Chairman 234 VISTA ST., ASHLAND OR 97520
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
Louis Miramontes director 150 N. BARTLETT ST., 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