(LAD) Lithia Motors - Overview
Sector: Consumer Cyclical | Industry: Auto & Truck Dealerships | Exchange: NYSE (USA) | Market Cap: 6.308m USD | Total Return: -6.7% in 12m
Avg Turnover: 83.4M
EPS Trend: -44.3%
Qual. Beats: 0
Rev. Trend: 96.2%
Qual. Beats: 0
Warnings
High Debt while negative Cash Flow
Tailwinds
No distinct edge detected
Lithia Motors, Inc. (LAD) is a multinational automotive retailer operating across the United States, Canada, and the United Kingdom. The company’s business model is structured into two primary segments: Vehicle Operations and Financing Operations. This vertical integration allows the firm to capture revenue throughout the entire vehicle ownership lifecycle, from initial sale and financing to long-term maintenance and fleet management.
The automotive retail sector is characterized by high fragmentation, where large dealer groups like Lithia scale through aggressive acquisitions of local franchises to gain regional market share. Unlike pure-play e-commerce competitors, Lithia utilizes a omnichannel strategy, combining a vast network of physical dealerships with digital platforms to facilitate vehicle procurement and home delivery.
To evaluate how these operational segments impact long-term valuation, consider exploring the data available on ValueRay. Founded in 1946 and headquartered in Medford, Oregon, the company continues to expand its footprint through captive finance solutions and synergistic adjacencies in the transportation sector.
- Aggressive dealership acquisitions drive revenue growth and market share expansion
- Higher interest rates reduce consumer affordability and increase floorplan financing costs
- Used vehicle pricing volatility impacts gross profit margins and inventory valuation
- Expansion of captive financing operations boosts long-term recurring revenue streams
- Growth in high-margin service and repair business offsets new vehicle cyclicality
| Net Income: 710.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA -1.42 > 1.0 |
| NWC/Revenue: -0.13% < 20% (prev 3.22%; Δ -3.34% < -1%) |
| CFO/TA 0.01 > 3% & CFO 138.7m > Net Income 710.5m |
| Net Debt (9.91b) to EBITDA (2.11b): 4.69 < 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 0.15%; Δ 1.51k% > 0.5%) |
| Asset Turnover: 153.3% > 50% (prev 156.7%; Δ -3.47% > 0%) |
| Interest Coverage Ratio: 2.34 > 6 (EBITDA TTM 2.11b / 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 6.34b / 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 15.23% / 15.31%) |
| AQI: 1.11 (AQ_t 0.49 / AQ_t-1 0.44) |
| SGI: 1.03 (Revenue 37.7b / 36.8b) |
| TATA: 0.02 (NI 710.5m - CFO 138.7m) / TA 25.7b) |
| Beneish M = -3.01 (Cap -4..+1) = AA |
As of May 31, 2026, the stock is trading at USD 290.89 with a total of 237,901 shares traded.
Over the past week, the price has changed by +5.96%,
over one month by +0.16%,
over three months by +4.46% and
over the past year by -6.71%.
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 | 371.7 | 27.8% |
P/E Trailing = 9.6538
P/E Forward = 7.8309
P/S = 0.1672
P/B = 0.988
P/EG = 0.607
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 = 10.3b USD (from shortLongTermDebtTotal, last quarter) + Leases 651.8m
Net Debt = 9.91b USD (calculated: Debt 10.3b - CCE 421.3m)
Enterprise Value = 16.2b USD (6.31b + Debt 10.3b - CCE 421.3m)
Interest Coverage Ratio = 2.34 (Ebit TTM 1.69b / Interest Expense TTM 721.5m)
EV/FCF = -67.41x (Enterprise Value 16.2b / FCF TTM -240.6m)
FCF Yield = -1.48% (FCF TTM -240.6m / Enterprise Value 16.2b)
FCF Margin = -0.64% (FCF TTM -240.6m / 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 = 0.63 (Enterprise Value 16.2b / Total Assets 25.7b)
Interest Expense / Debt = 6.98% (Interest Expense 721.5m / Debt 10.3b)
Taxrate = 28.17% (40.0m / 142.0m)
NOPAT = 1.21b (EBIT 1.69b * (1 - 28.17%))
Current Ratio = 0.99 (Total Current Assets 8.15b / Total Current Liabilities 8.20b)
Debt / Equity = 1.61 (Debt 10.3b / totalStockholderEquity, last quarter 6.41b)
Debt / EBITDA = 4.69 (Net Debt 9.91b / EBITDA 2.11b)
Debt / FCF = -41.19 (negative FCF - burning cash) (Net Debt 9.91b / FCF TTM -240.6m)
Total Stockholder Equity = 6.70b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.89% (Net Income 710.5m / Total Assets 25.7b)
RoE = 10.61% (Net Income TTM 710.5m / Total Stockholder Equity 6.70b)
RoCE = 10.74% (EBIT 1.69b / Capital Employed (Equity 6.70b + L.T.Debt 9.01b))
RoIC = 5.05% (NOPAT 1.21b / Invested Capital 24.0b)
WACC = 6.84% (E(6.31b)/V(16.6b) * Re(9.83%) + D(10.3b)/V(16.6b) * Rd(6.98%) * (1-Tc(0.28)))
Discount Rate = 9.83% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -97.75 | Cagr: -7.07%
[DCF] Fair Price = unknown (Cash Flow -240.6m)
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=8.64 | Chg30d=-2.98% | Revisions=-69% | Analysts=12
EPS next Quarter (2026-09-30): EPS=9.55 | Chg30d=-1.76% | Revisions=-23% | Analysts=12
EPS current Year (2026-12-31): EPS=34.39 | Chg30d=-1.19% | Revisions=+0% | GrowthEPS=+2.8% | GrowthRev=+2.2%
EPS next Year (2027-12-31): EPS=40.60 | Chg30d=-0.29% | Revisions=-7% | GrowthEPS=+18.0% | GrowthRev=+3.9%
[Analyst] Revisions Ratio: -69%