# Lithia Motors Inc. (LAD) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Consumer Cyclical / Specialty Retail. Price $298.77, market value $6.5 billion.

## Valuation
- **P/E (trailing): 8.6×** (5-yr avg 8.7×, 3-yr avg 10.4×). Lithia Motors Inc. trades at 8.6× trailing earnings, close to its own five-year average of 8.7×. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 7.4×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.76**. A PEG of 0.76 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: 1.0×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 8.6×**. Enterprise value is 8.6× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -6.6%** (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: 11.6%**. The inverse of the P/E: 11.6% of the price is earned each year.

## Profitability
- **Gross margin: 15.1%**. Lithia Motors Inc. keeps 15.1% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 4.0%**. 4.0% 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: 3.1%**. Each dollar of assets produces 3.1% 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: 2.34**. A Z-score of 2.34 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: 1.00%** ($2.57 per share, trailing). Lithia Motors Inc. yields 1.00%, 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.

## Analyst view
- **Analyst consensus: buy** (15 analysts). 15 analysts cover Lithia Motors Inc.; the consensus is buy, with an average price target of $391.20 (+31% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -0.8%** (YTD -6.4%, 3-mo -18.1%). The shares are down 0.8% over twelve months including dividends.
- **From 52-week high: -32.0%** (24.6% above the low). Trading 32% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 55**. An RSI of 55 is neutral.
- **Beta (1 yr): 0.48** (volatility 41%). Beta of 0.48 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.