# Lithia Motors Inc. (LAD) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Automobiles. Price $386.81, market value $8.5 billion.

## Valuation
- **P/E (trailing): 12.8×** (5-yr avg 8.7×, 3-yr avg 10.4×). Lithia Motors Inc. trades at 12.8× trailing earnings, well above its own five-year average of 8.7×: investors are paying up relative to the company's past. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 9.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.94**. A PEG of 0.94 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.3×**. The shares trade at 1.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 9.7×**. Enterprise value is 9.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -5.9%** (5-yr avg -1.0%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 7.8%**. The inverse of the P/E: 7.8% of the price is earned each year.

## Profitability
- **Gross margin: 15.2%**. Lithia Motors Inc. keeps 15.2% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 4.1%**. 4.1% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.2%**. 2.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 12.4%**. 12.4% on shareholders' equity is solid.
- **Return on invested capital: 7.4%**. Return on all capital, debt included, is 7.4%.
- **Return on assets: 2.8%**. Each dollar of assets produces 2.8% of profit.

## Growth
- **Revenue growth (1 yr): 4.0%** (3-yr 10.1%/yr, 5-yr 23.4%/yr). Revenue grew 4.0% over the last year, against 23.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 9.7%** (3-yr -9.9%/yr, 5-yr 10.6%/yr). Earnings per share rose 9.7%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 1.49**. Debt is 1.49 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Current ratio: 1.17** (quick 1.17). Current assets cover the next year's liabilities 1.17 times.
- **Altman Z-score: 2.41**. A Z-score of 2.41 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 0.72%** ($2.37 per share, trailing). Lithia Motors Inc. yields 0.72%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 7%**. 7% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 12**. 12 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 12.3%/yr** (1-yr 4.3%). The dividend has compounded at 12.3% a year over five years, doubling roughly every 6 years at that pace.

## Price and momentum
- **Total return (1 yr): 14.4%** (YTD 16.9%, 3-mo 33.9%). The shares are up 14.4% over twelve months including dividends.
- **From 52-week high: -12.0%** (61.3% above the low). Trading 12% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 64**. An RSI of 64 is neutral.
- **Beta (1 yr): 0.69** (volatility 38%). Beta of 0.69 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=LAD · Page: https://foliofundamentals.com/stocks/lad

Not investment advice.