AutoNation (AN) Stock Plays a Role in Bill Gates's Divorce
Key analysis of Lithia’s used vehicle operations
The larger share of CPOs and core vehicles in its sales mix drives Lithia’s significant lead in same-store gross profit per vehicle.
Is Alphabet’s Waymo Preparing for an IPO?
This week, Alphabet’s (NASDAQ:GOOGL) Waymo disclosed that it raised $2.25 billion from a group of outside investors. Will there be a Waymo IPO?
Alphabet’s Waymo Leaves Austin, Enters New Markets
Alphabet’s Waymo is shutting their Austin office to merge teams in Detroit and Phoenix. Waymo is looking for other ways to monetize technology.
Disney Issues $2.0 Billion in High-Grade Bonds Last Week
US corporates were the biggest issuers of high-grade bonds last week, making up 54.2% of all issues. The Walt Disney Company (DIS) issued A2/A rated high-grade bonds worth $2.0 billion.
KAR Auction Services Gets Bumped Up Slightly by TPG-Axon
TPX-Axon added to its holdings in KAR Auction Services (KAR) by increasing shares from 4,889,498 to 4,978,837. KAR forms 12.95% of the fund’s 4Q14 portfolio.
Caxton adds General Motors to its portfolio
General Motors North America reported 4Q14 revenues of $25.3 billion, a 0.8% rise compared to the corresponding period last year.
Lithia Motors, DCH Auto Group create a powerhouse auto retailer
In October 2014, Lithia completed its acquisition of DCH Auto Group for an estimated price of $669.5 million.
Understanding Lithia Motors’s Finance and Insurance business
Lithia’s same-store revenue grew 16.9% year-over-year to $120.4 million in the nine months ending September 30, 2014, driven by increased vehicle sales.
Analyzing Lithia’s throughput contribution and earnings
Lithia’s income from operations in the nine months ending September 30, 2014, was $165.9 million, up from $137.9 million in the previous year.
Outlook and valuation of Lithia Motors
Morgan Stanley analysts upgraded Lithia Motors to overweight from underweight, following a sell-off resulting in a ~30% drop in Lithia’s share price.
Analyzing Lithia Motors’s leverage and liquidity profile
The combined entities of Lithia Motors and DCH Auto Group are expected to generate free cash flow of $135 million in 2015.
Glenview Capital builds up position in Lithia Motors
Lithia targets mid-sized regional markets for domestic and imported vehicles, protecting the company from losing market share to leading industry players.