LAD Stock Analysis: Lithia Motors | NYSE
Auto & Truck Dealerships | NYSE, USA | Market Cap: 6.908m USD | 12M Return: 0.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 85.5M
EPS Trend: -44.3%
Qual. Beats: 0
Rev. Trend: 96.2%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 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. (NYSE: LAD) is a US-based automotive retailer founded in 1946 and headquartered in Medford, Oregon, operating across the United States, the United Kingdom, and Canada. The company reports through two segments: Vehicle Operations and Financing Operations, covering the full vehicle ownership lifecycle, including new and used vehicle sales, financing and insurance (F&I) products, and aftersales repair and maintenance services. Distribution occurs through physical dealerships, e-commerce platforms, a captive finance arm, and fleet management services.
The company is classified within the GICS Consumer Discretionary sector under the Automotive Retail sub-industry, a group that has undergone significant consolidation over the past two decades as large public dealer groups have acquired independent stores to gain scale. Lithias strategy of combining traditional dealership operations with captive financing and digital channels is consistent with broader sector efforts to capture recurring, higher-margin revenue beyond the cyclical new vehicle sales business.
As a mid-cap stock with a market capitalization of approximately $6.96 billion USD and an IPO date of December 1996, Lithia is one of the larger publicly traded US dealership groups alongside peers such as AutoNation, Penske Automotive Group, Group 1 Automotive, and Asbury Automotive Group.
- Used vehicle gross profit per unit declines amid price normalization
- Driveway digital platform lifts same-store revenue and F&I PVR
- Aggressive dealership acquisitions accelerate consolidated revenue growth
| Net Income: 710.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA -2.25 > 1.0 |
| NWC/Revenue: -0.13% < 20% (prev 3.22%; Δ -3.34% < -1%) |
| CFO/TA -0.00 > 3% & CFO -73.8m > Net Income 710.5m |
| Net Debt (16.4b) to EBITDA (2.11b): 7.74 < 3 |
| Current Ratio: 0.99 > 1.5 & < 3 |
| Outstanding Shares: last quarter (23.4m) vs 12m ago -11.36% < -2% |
| Gross Margin: 15.23% > 18% (prev 15.31%; Δ -0.09% > 0.5%) |
| Asset Turnover: 153.3% > 50% (prev 156.7%; Δ -3.47% > 0%) |
| Interest Coverage Ratio: 2.34 > 6 (EBIT TTM 1.69b / Interest Expense TTM 721.5m) |
| A: -0.00 (Total Current Assets 8.15b - Total Current Liabilities 8.20b) / Total Assets 25.7b |
| B: 0.25 (Retained Earnings 6.34b / Total Assets 25.7b) |
| C: 0.07 (EBIT TTM 1.69b / Avg Total Assets 24.6b) |
| D: 0.33 (Book Value of Equity 6.38b / Total Liabilities 19.3b) |
| Altman-Z'' = 1.60 = BB |
| DSRI: 0.88 (Receivables 1.26b/1.40b, Revenue 37.7b/36.8b) |
| GMI: 1.01 (GM 15.31% / 15.23%) |
| AQI: 1.05 (AQ_t 0.46 / AQ_t-1 0.44) |
| SGI: 1.03 (Revenue 37.7b / 36.8b) |
| TATA: 0.03 (NI 710.5m - CFO -73.8m) / TA 25.7b) |
| Beneish M = -3.07 (Cap -4..+1) = AA |
As of July 16, 2026, the stock is trading at USD 331.37 with a total of 355,975 shares traded. Over the past week, the price has changed by +9.40%, over one month by +7.41%, over three months by +20.96% and over the past year by +0.22%.
Current recommended Stop Loss: 314.20 (which is 5.2% or 1.7 ATR below the current price).
Lithia Motors has received a consensus analysts rating of 4.44. Therefore, it is recommended to buy LAD.
- StrongBuy: 10
- Buy: 3
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 370.3 | 11.8% |
P/E Trailing = 10.8687
P/E Forward = 8.8652
P/S = 0.1831
P/B = 1.1039
P/EG = 0.6874
Revenue TTM = 37.7b USD
EBIT TTM = 1.69b USD
EBITDA TTM = 2.11b USD
Long Term Debt = 9.01b USD (from longTermDebt, last quarter)
Short Term Debt = 6.46b USD (from shortTermDebt, last quarter)
Debt = 16.8b USD (from shortLongTermDebtTotal, last quarter) + Leases 651.8m
Net Debt = 16.4b USD (calculated: Debt 16.8b - CCE 421.3m)
Enterprise Value = 23.3b USD (6.91b + Debt 16.8b - CCE 421.3m)
Interest Coverage Ratio = 2.34 (Ebit TTM 1.69b / Interest Expense TTM 721.5m)
EV/FCF = -51.35x (Enterprise Value 23.3b / FCF TTM -453.1m)
FCF Yield = -1.95% (FCF TTM -453.1m / Enterprise Value 23.3b)
FCF Margin = -1.20% (FCF TTM -453.1m / Revenue TTM 37.7b)
Net Margin = 1.88% (Net Income TTM 710.5m / Revenue TTM 37.7b)
Gross Margin = 15.23% ((Revenue TTM 37.7b - Cost of Revenue TTM 32.0b) / Revenue TTM)
Gross Margin QoQ = 15.33% (prev 14.91%)
Tobins Q-Ratio = 0.90 (Enterprise Value 23.3b / Total Assets 25.7b)
Interest Expense / Debt = 4.30% (Interest Expense 721.5m / Debt 16.8b)
Taxrate = 25.79% (249.1m / 965.9m)
NOPAT = 1.25b (EBIT 1.69b * (1 - 25.79%))
Current Ratio = 0.99 (Total Current Assets 8.15b / Total Current Liabilities 8.20b)
Debt / Equity = 2.63 (Debt 16.8b / totalStockholderEquity, last quarter 6.38b)
Debt / EBITDA = 7.74 (Net Debt 16.4b / EBITDA 2.11b)
Debt / FCF = -36.11 (negative FCF - burning cash) (Net Debt 16.4b / FCF TTM -453.1m)
Total Stockholder Equity = 6.69b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.89% (Net Income 710.5m / Total Assets 25.7b)
RoE = 10.63% (Net Income TTM 710.5m / Total Stockholder Equity 6.69b)
RoCE = 10.75% (EBIT 1.69b / Capital Employed (Equity 6.69b + L.T.Debt 9.01b))
RoIC = 5.31% (NOPAT 1.25b / Invested Capital 23.6b)
WACC = 5.04% (E(6.91b)/V(23.7b) * Re(9.52%) + D(16.8b)/V(23.7b) * Rd(4.30%) * (1-Tc(0.26)))
Discount Rate = 9.52% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -93.45 | Cagr: -7.07%
[DCF] Fair Price = unknown (Cash Flow -453.1m)
EPS Correlation: -44.26 | EPS CAGR: -4.11% | SUE: 0.47 | # QB: 0
Revenue Correlation: 96.24 | Revenue CAGR: 10.31% | SUE: 0.37 | # QB: 0
EPS current Quarter (2026-06-30): EPS=8.81 | Chg30d=+1.52% | Revisions=-25% | Analysts=13
EPS next Quarter (2026-09-30): EPS=9.61 | Chg30d=-0.51% | Revisions=+25% | Analysts=13
EPS current Year (2026-12-31): EPS=34.61 | Chg30d=+0.18% | Revisions=+25% | GrowthEPS=+3.4% | GrowthRev=+2.0%
EPS next Year (2027-12-31): EPS=40.86 | Chg30d=+0.05% | Revisions=+25% | GrowthEPS=+18.1% | GrowthRev=+3.8%
[Analyst] Revisions Ratio: +29% (up=3, down=1)