Lithia Motors Inc.
As used in this Annual Report, the terms Lithia, Lithia and Driveway, LAD, the Company, we, us, and our refer collectively to Lithia Motors, Inc. and its subsidiaries, unless otherwise required by the context. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation, the factors as discussed in Part I, Item 1A.
$269.13
-$30.40 (-10.15%)
Price from 2 days ago
Operating margin is thin at 4.24%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 4.0%, steady but not accelerating. Free cash flow declined 92% despite revenue growth, conversion is weakening.
Free cash flow declined 92% versus the prior year, cash generation momentum has weakened. Net debt of $10.30B represents 1775.8x FCF, leverage limits flexibility.
8.9x earnings. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$37.94B
▲ +4.0% YoY
Net Income (TTM)
$714M
▲ +2.9% YoY
Op. Margin
4.08%
ROIC
7.80%
▼ -0.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$504M
▼ -92.1% YoY
Op. Cash Flow (TTM)
-$149M
▼ -16.1% YoY
Net Debt
$10.07B
Cash & Equiv.
$110M
5Y CAGR: +23.4%
5Y CAGR: -56.6%
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SourceComputed from the 10-Q filed 29 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 12 Oct 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Lithia Motors (LAD) overvalued?
At a P/E of 8.9, Lithia Motors (LAD)'s valuation is best read against its own history, its peers, and the growth its price implies. A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Lithia Motors scores 31/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.9%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
Is Lithia Motors a high-quality business?+
Lithia Motors scores 31 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 4.1% operating margin and a 7.8% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Lithia Motors (LAD) pay a dividend, and how much?+
Yes, Lithia Motors pays a regular dividend of about $2.35 per share per year (typically in quarterly installments), a yield of roughly 0.9% at the current price. That is a payout ratio of about 7.4% of earnings, so the dividend is amply covered by earnings. Lithia Motors has grown the dividend at roughly 9.3% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For LAD's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Lithia Motors a good stock to buy right now?+
That depends on valuation and quality together, not either alone. you should weigh LAD's valuation and scores 31/100 on quality (lower-quality). It also yields about 0.9%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Retail-Auto Dealers & Gasoline Stations
Spot a number that looks wrong? Check it in LAD's SEC filings or
Download this analysis as a PDF (Pro)
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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