NYSE
LAD
10 stories
$6.5B Market cap · 2026-11-04
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Mkt hated $LAD results (stock down 10%). Not sure why (SSS down a tad, margin ~flat). Mngmt called out large discrepancy between $PAG take-private (by founder) and sector multiple. Morningstar: "Think mkt is focused only on co's very near term prospects" $AN $ABG $GPI $SAH 🤷
Group 1 Automotive and Lithia Motors divide two longtime value investors: David Abrams switched to Lithia in 2018, while Greg Alexander…
$LAD beats earnings, largely driven by buybacks. Overall income down a bit, but maybe starting to hit a plateau? Used GPU's up, P&S + financing up. $AN
$GM on consumer sentiment vs. behaviour: "Consumer sentiment surveys have become disaggregated from behavior ... that's evident in our avg transaction px; in our trim mix; in what we see in GMF, where no noticeable shifts in delinquencies, defaults, etc." $AN $ABG $GPI $LAD
Roger Penske taking $PAG private ~15x fwd earnings, while peers trade ~6-7x (sure there are differences in capital structure+mix but still... US auto dealers are a bargain unless nasty recession and boomer wealth goes 'poof') $AN $ABG $GPI $LAD
$AN $GPI $ABG $LAD
$ABG bought back 7% of shares in H1, $LAD hammered the buyback in Q1 before stock ripped. Robert Penske/Mitsui wants to take over $PAG (at a fwd PE of 15x). Meanwhile rest of sector starting to trade closer to 6x, after $AN CFO spooked mkt.🧐
In other auto dealership news, $LAD slowed down repurchases bigtime in Q3 after stock rallied post Q2 results. Lithia bought back ~7.5% of shares in H1, just ~0.5% QTD in Q3. Instead buying a Hyundai store in DFW.
@BillRoman15 Yes, I broadly agree. $ABG and $LAD went big on M&A, now switched to buybacks. $GPI was more flexible, now a pretty sizeable deal. $AN and $SAH both with failed used dealership investments. As for $AN, you mean buying CIG Financial to launch their own DFC initiative?
I'm fishing but also tend to be early! At 6x earnings for the best store footprint+brand mix, $GPI looks dirt cheap to me. As does $ABG after change of CEO and change in capital allocation. $PAG launching a take-private & $LAD & $ABG hitting buybacks suggest ok outlook.
Companies the stories above are also about, besides LAD.
