LAD Stock Analysis: Lithia Motors | NYSE

New Cars, Used Cars, Auto Financing, Repair Services

Total Rating 37

Safety 65

Buy Signal 0.80

Auto & Truck Dealerships
Industry Rotation: -0.7

Market Cap: 6.75B
Avg Turnover: 85.9M

Risk 3d forecast

Volatility37.5%

VaR 5^th Pctl6.17%

VaR vs Median-0.11%

Reward TTM

Sharpe Ratio0.09

Rel. Str. IBD50.4

Rel. Str. Peer Group79.4

Character TTM

Beta0.435

Beta Downside0.567

Hurst Exponent0.517

Drawdowns 3y

Max DD37.79%

CAGR/Max DD0.08

CAGR/Mean DD0.19

EPS (Earnings per Share)

EPS CAGR: -1.61%
EPS Trend: -20.6%

Last SUE: 1.83
Qual. Beats: 1

Revenue

Rev. CAGR: 8.74%
Rev. Trend: 94.1%

Last SUE: 1.10
Qual. Beats: 1

Warnings

High Debt/EBITDA With Thin Interest Coverage

High Debt While Negative Cash Flow

Below Avwap Earnings

Tailwinds

Idiosyncratic Leader

Confidence

Seasonality 11.7 years of data

Jan +0.1% 5

Feb +1.0% 7

Mar -8.2% 70

Apr -2.4% 20

May +0.5% 10

Jun +0.0% 10

Jul +6.8% 44

Aug +0.5% 10

Sep -2.3% 27

Oct -0.5% 25

Nov +7.1% 19

Dec -3.8% 12

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.

Description: LAD Lithia Motors

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.

Headlines to Watch Out For

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

Piotroski VR-10 (Strict) 2.0

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)

Altman Z'' 1.41

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

Beneish M -2.72

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

What is the price of LAD shares?

As of September 27, 2026, the stock is trading at USD 316.42 with a total of 262,657 shares traded. Over the past week, the price has changed by +0.05%, over one month by -14.92%, over three months by +6.83% and over the past year by +0.73%.

Current recommended Stop Loss: 301.30 (which is 4.8% or 1.3 ATR below the current price).

Is LAD a buy, sell or hold?

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

What are the forecasts/targets for the LAD price?

Analysts Target Price	447.7	41.5%

Lithia Motors (LAD) - Fundamental Data Overview as of 25 September 2026

Market Cap USD = 6.75b (6.75b USD * 1.0 USD.USD)
P/E Trailing = 10.3409
P/E Forward = 7.6923
P/S = 0.1779
P/B = 1.0724
P/EG = 0.5783
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 = 23.6b USD (6.75b + Debt 17.2b - CCE 363.9m)
Interest Coverage Ratio = 1.39 (Ebit TTM 1.02b / Interest Expense TTM 732.2m)
EV/FCF = -46.80x (Enterprise Value 23.6b / FCF TTM -504.3m)
FCF Yield = -2.14% (FCF TTM -504.3m / Enterprise Value 23.6b)
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 = 0.90 (Enterprise Value 23.6b / 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 = 4.39% (E(6.75b)/V(24.0b) * Re(7.51%) + D(17.2b)/V(24.0b) * Rd(4.25%) * (1-Tc(0.25)))
Discount Rate = 7.51% (= 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=10.08 | Chg30d=-0.20% | Revisions=+50% | Analysts=10
EPS current Year (2026-12-31): EPS=36.33 | Chg30d=+0.11% | Revisions=+83% | GrowthEPS=+8.6% | GrowthRev=+2.1%
EPS next Year (2027-12-31): EPS=42.65 | Chg30d=+1.06% | Revisions=+47% | GrowthEPS=+17.4% | GrowthRev=+3.6%
[Analyst] Revisions Ratio: +70% (up=35, down=5)