A Business at a Glance
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LITHIA MOTORS INC
LAD
$8.6B
Mkt Cap
$340.95
+2.07%
LITHIA MOTORS INC (LAD) has a current P/E ratio of 10.5, compared to its historical median P/E of 10.8. The stock is currently considered Fair based on its historical valuation range.
LITHIA MOTORS INC (LAD) has a 5-year average return on invested capital (ROIC) of 12.1%. This indicates solid capital allocation.
LITHIA MOTORS INC (LAD) has a market capitalization of $7.8B. It is classified as a mid-cap stock.
Yes, LITHIA MOTORS INC (LAD) pays a dividend with a trailing twelve-month yield of 0.70%. The company also returns capital through share buybacks, with a buyback yield of 14.34%.
Based on historical P/E analysis, LITHIA MOTORS INC (LAD) appears fair. The current P/E of 10.5 is 2% below its historical median of 10.8. The estimated fair value CAGR (P/E method) is 18.6%.
LITHIA MOTORS INC (LAD) operates in the Retail-Auto Dealers & Gasoline Stations industry, within the Consumer Cyclical sector.
LITHIA MOTORS INC (LAD) reported annual revenue of $37.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
Lithia and Driveway is the largest global automotive retailer operating 455 locations representing 54 brands across the United States, United Kingdom, and Canada, offering new and used vehicles, financing and insurance products, and aftersales automotive repair and maintenance services throughout the vehicle ownership lifecycle. The company earns revenue through vehicle sales, captive finance operations via Driveway Finance Corporation (DFC), fleet management offerings, and omnichannel adjacencies including e-commerce, software, and insurance. The business model combines local store execution with integrated technology and a diversified brand portfolio to reduce dependence on any single manufacturer and manage market risk, while DFC provides recurring countercyclical income through financing penetration targeting 20% of retail units. Distribution spans physical retail locations and e-commerce platforms including the Driveway marketplace, with a focus on U.S. market share expansion from 1.1% toward 5% through both organic growth and disciplined acquisitions targeting 15%–30% of revenue or 3x–6x normalized EBITDA. The company's competitive differentiation rests on its omnichannel platform, scale synergies, and ability to serve customers across the entire vehicle ownership lifecycle, supported by operational leverage in SG&A and capital discipline that has historically delivered acquisition returns exceeding its 15% after-tax hurdle rate.
【DFC scaling and margin expansion】 Management expects Driveway Finance Corporation to continue delivering strong profitable growth as penetration advances toward the long-term 20% target, with managed receivables approaching $5 billion and net interest margins expanding through increasingly efficient securitizations. The company anticipates SG&A as a percentage of gross profit to improve toward a medium-term target of 60%–65% and a long-term target of 55%, driven primarily by volume growth, market share gains, and scale efficiencies from Pinewood AI deployment and operational initiatives. Capital allocation will remain balanced between opportunistic acquisitions at disciplined valuations, share repurchases when valuations are attractive, and organic investments, with leverage maintained comfortably below the three-times target to preserve investment-grade discipline. Management sees continued momentum from omnichannel adjacencies and expects benefits from strategic initiatives to build quarter by quarter as the company advances toward its long-term financial targets.
| Metric | Target | Period |
|---|---|---|
| DFC penetration rate | 20% or more | Long-term target |
| SG&A as a percentage of gross profit | 60%–65% | Medium-term |
| EPS per $1 billion of revenue | $2 | Long-term target |
DFC penetration rate (Long-term target): “clear runway for penetration growth towards our long-term 20-plus target”
SG&A as a percentage of gross profit (Medium-term): “we would certainly, you know, kind of expect that to be consistent, predictable, and repeatable in terms of our growth. And so we see kind of a 20%+ kind of growth rate of our financing income operations, and that, you know, kind of does align pretty well with your, you know, within a year or two or a couple of years, I should say, of hitting sort of that midterm kind of growth target that we're showing there.”
EPS per $1 billion of revenue (Long-term target): “they reinforce our conviction in the long-term target of $2 of EPS for $1 billion of revenue”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 37.7B | 37.6B | 36.2B | 31.0B | 28.2B | 22.8B |
| Net Income | 711M | 820M | 797M | 1.0B | 1.3B | 1.1B |
| EPS | $29.09 | $32.32 | $29.45 | $36.29 | $44.17 | $36.54 |
| Free Cash Flow | -453M | 5.8M | 74M | -703M | -913M | 1.5B |
| ROIC | 16.8% | 7.6% | 8.6% | 10.7% | 15.1% | 18.4% |
| Gross Margin | 15.2% | 15.2% | 15.4% | 16.8% | 18.3% | 18.7% |
| Debt/Equity | 0.08 | 1.60 | 1.36 | 1.25 | 1.14 | 0.83 |
| Dividends/Share | $2.38 | $2.18 | $2.09 | $1.92 | $1.61 | $1.36 |
| Operating Income | 1.5B | 1.6B | 1.6B | 1.7B | 1.9B | 1.7B |
| Operating Margin | 4.0% | 4.2% | 4.3% | 5.5% | 6.9% | 7.3% |
| ROE | 11.1% | 12.4% | 12.4% | 17.5% | 25.4% | 29.1% |
| Shares Outstanding | 23M | 25M | 27M | 28M | 28M | 29M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 5.4B | 7.9B | 8.7B | 10.1B | 11.8B | 12.7B | 13.1B | 22.8B | 28.2B | 31.0B | 36.2B | 37.6B | 37.7B |
| Gross Margin | 15.3% | 14.9% | 15.0% | 15.0% | 15.0% | 15.4% | 16.9% | 18.7% | 18.3% | 16.8% | 15.4% | 15.2% | 15.2% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 563M | 811M | 900M | 1.0B | 1.3B | 1.4B | 1.4B | 2.5B | 3.0B | 3.3B | 3.8B | 3.9B | 4.0B |
| EBIT | 232M | 303M | 338M | 409M | 447M | 495M | 693M | 1.7B | 1.9B | 1.7B | 1.6B | 1.6B | 1.5B |
| Op. Margin | 4.3% | 3.8% | 3.9% | 4.1% | 3.8% | 3.9% | 5.3% | 7.3% | 6.9% | 5.5% | 4.3% | 4.2% | 4.0% |
| Net Income | 139M | 183M | 197M | 245M | 266M | 272M | 470M | 1.1B | 1.3B | 1.0B | 797M | 820M | 711M |
| Net Margin | 2.6% | 2.3% | 2.3% | 2.4% | 2.2% | 2.1% | 3.6% | 4.6% | 4.4% | 3.2% | 2.2% | 2.2% | 1.9% |
| Non-Recurring | 7.6M | 26M | 15M | 5.1M | 16M | 11M | 20M | 1.9M | 66M | 31M | 8.2M | 26M | 26M |
| Returns on Capital | |||||||||||||
| ROIC | 17.2% | 18.5% | 18.1% | 16.8% | 15.2% | 12.6% | 12.9% | 18.4% | 15.1% | 10.7% | 8.6% | 7.6% | 16.8% |
| ROE | 23.0% | 24.4% | 22.7% | 24.6% | 23.3% | 20.4% | 22.8% | 29.1% | 25.4% | 17.5% | 12.4% | 12.4% | 11.1% |
| ROA | 6.0% | 6.0% | 5.6% | 5.8% | 5.3% | 4.7% | 6.7% | 11.1% | 9.6% | 5.8% | 3.7% | 3.4% | 2.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 31M | 80M | 91M | 149M | 520M | 525M | 545M | 1.8B | -610M | -472M | 425M | 357M | -74M |
| Free Cash Flow | -55M | -3.7M | -9.9M | 44M | 362M | 400M | 377M | 1.5B | -913M | -703M | 74M | 5.8M | -453M |
| Owner Earnings | -2.8M | 26M | 31M | 80M | 431M | 426M | 429M | 1.6B | -824M | -717M | 71M | -27M | -463M |
| CapEx | 86M | 83M | 101M | 105M | 158M | 125M | 168M | 260M | 303M | 230M | 351M | 351M | 379M |
| Maint. CapEx | 26M | 42M | 49M | 58M | 75M | 82M | 92M | 127M | 173M | 204M | 295M | 324M | 332M |
| Growth CapEx | 60M | 42M | 52M | 48M | 83M | 42M | 75M | 133M | 130M | 26M | 56M | 27M | 47M |
| D&A | 26M | 42M | 49M | 58M | 75M | 82M | 92M | 127M | 173M | 204M | 295M | 324M | 332M |
| CapEx/OCF | 283.6% | 111.7% | 110.8% | 70.8% | 30.4% | 23.8% | 30.8% | 14.5% | N/A | N/A | 82.7% | 98.4% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 16M | 20M | 24M | 27M | 28M | 28M | 29M | 39M | 45M | 53M | 57M | 55M | 54M |
| Dividend Yield | 0.9% | 0.8% | 1.2% | 1.1% | 1.3% | 1.0% | 0.7% | 0.4% | 0.6% | 0.7% | 0.7% | 0.7% | 0.7% |
| Share Buybacks | 23M | 32M | 113M | 34M | 149M | 3.2M | 51M | 231M | 688M | 49M | 366M | 961M | 1.1B |
| Buyback Yield | 1.1% | 1.2% | 4.9% | 1.3% | 8.5% | 0.1% | 0.7% | 2.8% | 12.7% | 0.5% | 3.8% | 11.0% | 14.3% |
| Stock-Based Comp | 7.4M | 12M | 11M | 11M | 13M | 16M | 23M | 35M | 41M | 41M | 58M | 60M | 57M |
| Debt Repayment | 0 | 0 | 0 | 4.7M | 400K | 5.8M | 11M | 15M | 12M | 17M | 11M | 16M | 16M |
| Balance Sheet | |||||||||||||
| Net Debt | 376M | 407M | 456M | 990M | 1.4B | 1.6B | 2.2B | 3.7B | 5.7B | 6.8B | 8.6B | 10.1B | 318M |
| Cash & Equiv. | 30M | 45M | 50M | 57M | 32M | 84M | 160M | 153M | 272M | 972M | 446M | 391M | 214M |
| Long-Term Debt | 374M | 413M | 485M | 1.0B | 1.4B | 1.4B | 2.1B | 3.2B | 5.5B | 7.2B | 8.2B | 9.7B | 532M |
| Debt/Equity | 0.60 | 0.55 | 0.56 | 0.97 | 1.16 | 1.18 | 0.90 | 0.83 | 1.14 | 1.25 | 1.36 | 1.60 | 0.08 |
| Interest Coverage | 21.6 | 15.5 | 14.6 | 11.8 | 8.0 | 8.2 | 9.7 | 16.1 | 15.0 | 8.4 | 6.1 | 5.8 | 138.6 |
| Equity | 673M | 828M | 911M | 1.1B | 1.2B | 1.5B | 2.7B | 4.6B | 5.2B | 6.2B | 6.7B | 6.6B | 6.4B |
| Total Assets | 2.9B | 3.2B | 3.8B | 4.7B | 5.4B | 6.1B | 7.9B | 11.1B | 15.0B | 19.6B | 23.1B | 25.1B | 25.7B |
| Total Liabilities | 2.2B | 2.4B | 2.9B | 3.6B | 4.2B | 4.6B | 5.2B | 6.5B | 9.8B | 13.3B | 16.4B | 18.5B | 19.3B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 368M | 531M | 704M | 923M | 1.2B | 1.4B | 1.8B | 2.9B | 4.1B | 5.0B | 5.8B | 6.5B | 6.3B |
| Working Capital | 173M | 288M | 365M | 482M | 498M | 501M | 860M | 907M | 1.5B | 2.0B | 1.2B | 1.2B | -48M |
| Current Assets | 1.6B | 1.9B | 2.3B | 2.8B | 3.0B | 3.1B | 3.3B | 3.3B | 4.6B | 6.9B | 7.8B | 7.9B | 8.2B |
| Current Liabilities | 1.4B | 1.6B | 1.9B | 2.3B | 2.5B | 2.6B | 2.5B | 2.4B | 3.2B | 4.9B | 6.6B | 6.7B | 8.2B |
| Per Share Data | |||||||||||||
| EPS | 5.26 | 6.91 | 7.72 | 9.75 | 10.86 | 11.60 | 19.53 | 36.54 | 44.17 | 36.29 | 29.45 | 32.32 | 29.09 |
| Owner EPS | -0.11 | 0.98 | 1.20 | 3.18 | 17.62 | 18.20 | 17.81 | 56.36 | -29.09 | -26.01 | 2.64 | -1.07 | -20.32 |
| Book Value | 25.52 | 31.27 | 35.67 | 43.07 | 48.93 | 62.71 | 110.52 | 159.46 | 183.82 | 225.32 | 245.82 | 260.39 | 280.01 |
| Cash Flow/Share | 1.17 | 3.00 | 3.56 | 5.92 | 21.24 | 22.41 | 22.62 | 61.95 | -21.54 | -17.13 | 15.71 | 14.07 | 45.73 |
| Dividends/Share | 0.61 | 0.76 | 0.95 | 1.06 | 1.14 | 1.19 | 1.22 | 1.36 | 1.61 | 1.92 | 2.09 | 2.18 | 2.38 |
| Shares Out. | 26.4M | 26.5M | 25.5M | 25.1M | 24.5M | 23.4M | 24.1M | 29.0M | 28.3M | 27.6M | 27.1M | 25.4M | 22.8M |
| Valuation | |||||||||||||
| P/E Ratio | 15.3 | 14.3 | 11.6 | 11.0 | 6.6 | 12.3 | 14.7 | 7.8 | 4.3 | 8.9 | 12.2 | 10.7 | 11.7 |
| P/FCF | N/A | N/A | N/A | 61.8 | 4.8 | 8.4 | 18.3 | 5.4 | N/A | N/A | 131.5 | N/A | N/A |
| EV/EBIT | 11.8 | 10.6 | 8.9 | 8.9 | 6.9 | 9.3 | 12.8 | 5.3 | 5.5 | 9.1 | 11.4 | 11.5 | 5.3 |
| Price/Book | 3.1 | 3.2 | 2.5 | 2.5 | 1.5 | 2.3 | 2.6 | 1.8 | 1.0 | 1.4 | 1.5 | 1.3 | 1.2 |
| Price/Sales | 0.3 | 0.3 | 0.2 | 0.2 | 0.2 | 0.2 | 0.3 | 0.4 | 0.3 | 0.2 | 0.2 | 0.2 | 0.2 |
| FCF Yield | -2.6% | -0.1% | -0.4% | 1.6% | 20.6% | 12.0% | 5.5% | 18.6% | -16.8% | -7.9% | 0.8% | 0.1% | -5.8% |
| Market Cap | 2.1B | 2.6B | 2.3B | 2.7B | 1.8B | 3.3B | 6.9B | 8.3B | 5.4B | 8.9B | 9.7B | 8.7B | 7.8B |
| Avg. Price | 69.26 | 96.93 | 79.08 | 95.32 | 89.66 | 113.66 | 176.46 | 333.83 | 263.49 | 259.92 | 293.79 | 321.21 | 340.95 |
| Year-End Price | 80.37 | 99.01 | 89.85 | 106.95 | 71.66 | 142.69 | 286.33 | 285.51 | 191.79 | 324.45 | 358.36 | 344.41 | 340.95 |
LITHIA MOTORS INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
LITHIA MOTORS INC trades at 10.5x trailing earnings, compared to its 15-year median P/E of 10.8x, suggesting it is currently Fair relative to its historical range. The company's 5-year average ROIC is 12.1% with a gross margin of 16.9%. Total shareholder yield (dividends + buybacks) is 15.0%. At current prices, the estimated annualized return to fair value is -33.5%.
LITHIA MOTORS INC (LAD) has a net profit margin of 2.2%. This is a modest margin.
LITHIA MOTORS INC (LAD) generated $6 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
LITHIA MOTORS INC (LAD) has a debt-to-equity ratio of 1.60. This indicates higher leverage, which may increase financial risk.
LITHIA MOTORS INC (LAD) reported earnings per share (EPS) of $32.32 in its most recent fiscal year.
LITHIA MOTORS INC (LAD) has a return on equity (ROE) of 12.4%. This indicates moderate shareholder returns.
LITHIA MOTORS INC (LAD) has a 5-year average gross margin of 16.9%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for LITHIA MOTORS INC (LAD), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
LITHIA MOTORS INC (LAD) has a book value per share of $260.39, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects Driveway Finance Corporation to continue delivering strong profitable growth as penetration advances toward the long-term 20% target, with managed receivables approaching $5 billion and net interest margins expanding through increasingly efficient securitizations. The company anticipates SG&A as a percentage of gross profit to improve toward a medium-term target of 60%–65% and a long-term target of 55%, driven primarily by volume growth, market share gains, and scale efficiencies from Pinewood AI deployment and operational initiatives. Capital allocation will remain balanced between opportunistic acquisitions at disciplined valuations, share repurchases when valuations are attractive, and organic investments, with leverage maintained comfortably below the three-times target to preserve investment-grade discipline. Management sees continued momentum from omnichannel adjacencies and expects benefits from strategic initiatives to build quarter by quarter as the company advances toward its long-term financial targets.
Based on recent SEC filings and earnings calls, LITHIA MOTORS INC (LAD) has provided the following forward guidance: DFC penetration rate: 20% or more (Long-term target); SG&A as a percentage of gross profit: 60%–65% (Medium-term); EPS per $1 billion of revenue: $2 (Long-term target).