LAD Stock Analysis: Lithia Motors | NYSE
Auto & Truck Dealerships | NYSE, USA | Market Cap: 6.350m USD | 12M Return: -3.1% | US5367971034 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 98.5M
EPS Trend: -20.6%
Qual. Beats: 1
Rev. Trend: 94.1%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Lithia Motors, Inc. (LAD) is an automotive retailer operating across the United States, the United Kingdom, and Canada. The company is organized into two reportable segments: Vehicle Operations and Financing Operations. It serves customers through the full vehicle ownership lifecycle, offering new and used vehicle sales, financing and insurance (F&I) products, and aftersales repair and maintenance services. These products and services are delivered through a network of physical dealerships, e-commerce platforms, a captive finance arm, and fleet management offerings. The company was founded in 1946 and is headquartered in Medford, Oregon.
Lithia operates within the franchised automotive retail model, which remains the dominant channel for new vehicle sales in North America and assigns manufacturers brand rights to independent dealers. Captive finance operations, like Lithias, are a common feature among large multi-brand dealer groups because F&I products and dealer-arranged lending typically generate higher margins than vehicle sales themselves. As a Consumer Discretionary name in GICS Automotive Retail, the companys revenue is closely tied to consumer spending on big-ticket durable goods and to prevailing interest rate conditions, which influence both vehicle demand and financing profitability.
- Used vehicle gross profit declines on normalizing pricing
- Driveway acquisition lifts finance and insurance revenue
- Pendragon UK dealership integration expands international footprint
| Net Income: 714.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA -3.25 > 1.0 |
| NWC/Revenue: 0.06% < 20% (prev 3.84%; Δ -3.78% < -1%) |
| CFO/TA -0.01 > 3% & CFO -148.8m > Net Income 714.4m |
| Net Debt (16.9b) to EBITDA (1.41b): 11.96 < 3 |
| Current Ratio: 1.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (22.5m) vs 12m ago -14.77% < -2% |
| Gross Margin: 11.03% > 18% (prev 15.33%; Δ -4.30% > 0.5%) |
| Asset Turnover: 150.5% > 50% (prev 153.8%; Δ -3.26% > 0%) |
| Interest Coverage Ratio: 1.39 > 6 (EBIT TTM 1.02b / Interest Expense TTM 732.2m) |
| A: 0.00 (Total Current Assets 8.27b - Total Current Liabilities 8.25b) / Total Assets 26.2b |
| B: 0.24 (Retained Earnings 6.36b / Total Assets 26.2b) |
| C: 0.04 (EBIT TTM 1.02b / Avg Total Assets 25.2b) |
| D: 0.32 (Book Value of Equity 6.43b / Total Liabilities 19.8b) |
| Altman-Z'' = 1.41 = BB |
| DSRI: 0.89 (Receivables 1.12b/1.24b, Revenue 37.9b/37.2b) |
| GMI: 1.39 (GM 15.33% / 11.03%) |
| AQI: 1.04 (AQ_t 0.47 / AQ_t-1 0.45) |
| SGI: 1.02 (Revenue 37.9b / 37.2b) |
| TATA: 0.03 (NI 714.4m - CFO -148.8m) / TA 26.2b) |
| Beneish M = -2.72 (Cap -4..+1) = A |
As of October 16, 2026, the stock is trading at USD 295.31 with a total of 414,720 shares traded. Over the past week, the price has changed by +2.23%, over one month by -14.63%, over three months by -10.72% and over the past year by -3.11%.
Current recommended Stop Loss: 273.40 (which is 7.4% or 1.8 ATR below the current price).
Lithia Motors has received a consensus analysts rating of 4.20. Therefore, it is recommended to buy LAD.
- StrongBuy: 8
- Buy: 2
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 433.5 | 46.8% |
P/E Trailing = 9.5684
P/E Forward = 7.9239
P/S = 0.1674
P/B = 1.1046
P/EG = 0.5957
Revenue TTM = 37.9b USD
EBIT TTM = 1.02b USD
EBITDA TTM = 1.41b USD
Long Term Debt = 9.38b USD (from longTermDebt, last quarter)
Short Term Debt = 6.53b USD (from shortTermDebt, last quarter)
Debt = 17.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 650.6m
Net Debt = 16.9b USD (calculated: Debt 17.2b - CCE 363.9m)
Enterprise Value = 23.2b USD (6.35b + Debt 17.2b - CCE 363.9m)
Interest Coverage Ratio = 1.39 (Ebit TTM 1.02b / Interest Expense TTM 732.2m)
EV/FCF = -46.00x (Enterprise Value 23.2b / FCF TTM -504.3m)
FCF Yield = -2.17% (FCF TTM -504.3m / Enterprise Value 23.2b)
FCF Margin = -1.33% (FCF TTM -504.3m / Revenue TTM 37.9b)
Net Margin = 1.88% (Net Income TTM 714.4m / Revenue TTM 37.9b)
Gross Margin = 11.03% ((Revenue TTM 37.9b - Cost of Revenue TTM 33.8b) / Revenue TTM)
Gross Margin QoQ = -0.75% (prev 15.33%)
Tobins Q-Ratio = 0.88 (Enterprise Value 23.2b / Total Assets 26.2b)
Interest Expense / Debt = 4.25% (Interest Expense 732.2m / Debt 17.2b)
Taxrate = 25.44% (245.7m / 965.8m)
NOPAT = 758.3m (EBIT 1.02b * (1 - 25.44%))
Current Ratio = 1.00 (Total Current Assets 8.27b / Total Current Liabilities 8.25b)
Debt / Equity = 2.68 (Debt 17.2b / totalStockholderEquity, last quarter 6.43b)
Debt / EBITDA = 11.96 (Net Debt 16.9b / EBITDA 1.41b)
Debt / FCF = -33.41 (negative FCF - burning cash) (Net Debt 16.9b / FCF TTM -504.3m)
Total Stockholder Equity = 6.55b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.83% (Net Income 714.4m / Total Assets 26.2b)
RoE = 10.91% (Net Income TTM 714.4m / Total Stockholder Equity 6.55b)
RoCE = 6.39% (EBIT 1.02b / Capital Employed (Equity 6.55b + L.T.Debt 9.38b))
RoIC = 3.14% (NOPAT 758.3m / Invested Capital 24.2b)
WACC = 4.37% (E(6.35b)/V(23.6b) * Re(7.62%) + D(17.2b)/V(23.6b) * Rd(4.25%) * (1-Tc(0.25)))
Discount Rate = 7.62% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.25 | Cagr: -8.68%
[DCF] Fair Price = unknown (Cash Flow -504.3m)
EPS Correlation: -20.56 | EPS CAGR: -1.61% | SUE: 1.83 | # QB: 1
Revenue Correlation: 94.05 | Revenue CAGR: 8.74% | SUE: 1.10 | # QB: 1
EPS current Quarter (2026-09-30): EPS=9.96 | Chg30d=-1.33% | Revisions=-25% | Analysts=10
EPS current Year (2026-12-31): EPS=36.01 | Chg30d=-0.76% | Revisions=-25% | GrowthEPS=+7.6% | GrowthRev=+1.8%
EPS next Year (2027-12-31): EPS=41.82 | Chg30d=-0.91% | Revisions=+47% | GrowthEPS=+16.1% | GrowthRev=+3.3%
[Analyst] Revisions Ratio: +32% (up=11, down=5)