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Stock impact report

3 Profitable Stocks That Fall Short [Yahoo! Finance]

Lithia Motors, Inc. (LAD) 
Last lithia motors, inc. earnings: 4/22 07:00 am Check Earnings Report
US:NYSE Investor Relations: lithiainvestorrelations.com
Company Research Source: Yahoo! Finance
Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. Keeping that in mind, here are three profitable companies to steer clear of and a few better alternatives. Lithia (LAD) Trailing 12-Month GAAP Operating Margin: 4.2% With a strong presence in the Western US, Lithia Motors (NYSE:LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers. Why Is LAD Not Exciting? Poor same-store sales performance over the past two years indicates it's having trouble bringing new shoppers into its brick-and-mortar locations Gross margin of 15.4% is an output of its commoditized inventory High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens Lithia is trading at $250.73 per share, or 7.1x forward P/E. Read our free research report to see why you should think twice a Show less Read more
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