Lithia Motors (LAD) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Lithia Motors

NYSE•Consumer Cyclical•Auto & Truck Dealerships

$368.70-18.11(-0.05%)Pre-market

Market Cap

$8.24B

P/E

11.5x

P/S

0.2x

P/B

1.3x

Lithia Motors, Inc. operates as an automotive retailer in the United States, the United Kingdom, and Canada. The company operates in two segments, Vehicle Operations and Financing Operations. It offers a range of products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, financing and insurance products, and aftersales automotive repair and maintenance services. The company provides its products and services through a network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.

How this company scores

WeakMetricSide Score: 39/100

Strongest: Balance Sheet & Red Flags (14/25); weakest: Cash & Earnings Quality (3/25).

Profitability11/25

Growth11/25

Balance Sheet & Red Flags14/25

Cash & Earnings Quality3/25

Strengths

Consistent growthNet cash positionImproving marginsNo share dilution

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 11.5x5y range 4.5x – 11.8x

Currently above its 20-quarter median.

P/S · 0.2x5y range 0.2x – 0.5x

Currently near its 20-quarter median.

P/B · 1.3x5y range 0.9x – 2.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Watch

Operating margins declined 9.6% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Red Flag

Free cash flow has been negative in 5 of the last 8 quarters — earnings are not translating to cash.

Price & Volume

Market Cap $8.24B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $37.94B
Q. Revenue: $9.79B
TTM EBITDA: $1.89B
TTM Op. Income: $1.55B
Q. Op. Income: $448.30M
TTM Net Income: $714.40M
Q. Net Income: $260.00M
EPS: $11.56
Shares Out.: $22.50M

$37.94B in TTM revenue grew 2.1% YoY, reaching $9.79B last quarter. TTM EBITDA of $1.89B and TTM operating income of $1.55B show growth is flowing through to the bottom line. TTM net income of $714.40M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 15.3%
EBITDA Margin: 5.5%
Op. Margin: 4.6%
Net Margin: 2.7%

Op. margin of 4.6% is up 0.1% YoY — cost efficiency is improving. Net margin at 2.7% and gross margin of 15.3% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 3% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 11.5x
P/S Ratio: 0.2x
P/B Ratio: 1.3x

At 11.5x P/E, the stock trades below typical market levels. P/S of 0.2x and P/B of 1.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 17% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $26.25B
Cash: $110.30M
Long-Term Debt: N/A
Book Value: $6.40B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-65.70M
TTM Free Cash Flow: $-504.30M
FCF Margin: -1.3%
FCF / Net Income: -0.7

TTM FCF of $-504.30M on $-65.70M in operating cash flow. The FCF / Net Income ratio of -0.7x means the business consumes cash — it is not yet self-funding. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.