Lithia Motors Inc. Quality Score
LAD
Weak across most dimensions. This doesn't mean avoid, but the burden of proof is on the bull case.
Broad-market heuristics · Not a buy/sell signal
Valuation and growth
Valuation
Growth
Under 20x, reasonable relative to earnings
Negative FCF, no valuation support
5–10% CAGR, steady but not exceptional
FCF negative, burning cash after capex
Business Quality & Capital Allocation
Shrinking >2%, active buybacks
Contracted >2pp, margin pressure
Positive debt with no FCF to service it
Below 8%, may not cover cost of capital
Lithia Motors (LAD) quality: score, margins and returns
Lithia Motors (LAD) scores 31/100 on Intrinsiqq's quality score (a lower-quality business), a weighted blend of 7 metrics each scored 0 to 100, on 4.0% operating margins and 7.6% ROIC. Every metric is computed from SEC filings; this is analysis, not investment advice.
Frequently asked
Is Lithia Motors (LAD) 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 rates it a lower-quality business on these measures. Recent figures include a 4.0% operating margin and a 7.6% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.
What does Lithia Motors's quality score measure?+
Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from LAD's SEC filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Lithia Motors scores well and where it falls behind.
What is Lithia Motors's return on invested capital (ROIC)?+
Lithia Motors earns about 7.6% on its invested capital, which is modest. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to LAD's margins and growth on this scorecard to judge durability.
How profitable is Lithia Motors?+
Lithia Motors runs an operating margin of about 4.0% and a net margin of about 2.1%. Revenue has grown at roughly 23.4% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from SEC filings, not investment advice.
SourceQuality score computed from the 10-Q filed 28 Oct 2026, covering the period ending 30 Sept 2026, as reported to the SEC. Data last refreshed 29 Oct 2026. How this is calculated.
Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically. Checks use broad-market heuristics, so sector norms may differ, and the valuation checks are more cyclical than the quality checks.
Peers
Retail-Auto Dealers & Gasoline Stations · Pick stocks to compare with LAD
Held by ETFs
LAD is in 133 US ETFs. The largest of them, with LAD's weight in each:
Vanguard Total Stock Market ETFVTI0.01%of the fund
Vanguard Small-Cap ETFVB0.08%of the fund
Vanguard Dividend Appreciation ETFVIG0.03%of the fund
iShares Core S&P Mid-Cap ETFIJH0.19%of the fund
Vanguard Extended Market ETFVXF0.08%of the fund
iShares Core S&P Total U.S. Stock Market ETFITOT0.01%of the fund
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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