Stock AnalizLithia Motors Inc. LAD
Retail-Auto Dealers and Gas Stations · data as of November 13, 2026
Lithia Motors Inc. (LAD) is a consumer discretionary company listed in the US with a market value of about $6.4B. In the twelve months to September 30, 2026 it had revenue of $38.2B and net income of $788M, a net margin of 2.1%.
Its overall Stock Analiz score is 2.6 out of 5 (average). The strongest part is value (4/5); the weakest is future growth (1/5).
Key numbers: a P/E of 8.5, 5-year revenue growth of 23% a year, a 5-year average ROIC of 10%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 62% above the current price.
Score: 2.6 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- 3-year revenue growth above 10% a year
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- Profitable 5 years in a row
Checks not passed
- P/FCF below 20
- Revenue growth above 10% last year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year average ROIC above 12%
- ROE above 15%
- More cash than debt, or low debt to equity
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $38.2B | $37.6B | $36.2B | $31.0B | $28.2B | $22.8B | $13.1B | $12.7B | $11.8B | $10.1B | $8.7B |
| Net income | $788M | $820M | $797M | $1.0B | $1.3B | $1.1B | $470M | $272M | $266M | $245M | $197M |
| Free cash flow | -$427M | $6M | $74M | -$703M | -$913M | $1.5B | $377M | $400M | $362M | $44M | -$10M |
| EPS (diluted) | $34.94 | $32.32 | $29.45 | $36.29 | $44.17 | $36.54 | $19.53 | $11.60 | $10.86 | $9.75 | $7.72 |
| Net margin | 2.1% | 2.2% | 2.2% | 3.2% | 4.4% | 4.6% | 3.6% | 2.1% | 2.2% | 2.4% | 2.3% |
| ROIC | — | 6.9% | 7.6% | 9.0% | 12.7% | 14.1% | 9.9% | 11.2% | 12.5% | 13.6% | 16.6% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 15 analysts is $391.20, 32% above the current price; targets range from $305.00 to $490.00; the consensus rating is “Buy”; expected EPS is $35.96 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Lithia Motors’s P/E ratio?
About 8.5, based on the last twelve months of diluted earnings per share (forward P/E about 8.0).
Is Lithia Motors stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 62% above the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Lithia Motors pay a dividend?
Yes. The dividend yield is about 0.96%, and it has paid dividends for 10 years in our data.
Is Lithia Motors a good stock to buy?
We do not give buy or sell advice. Lithia Motors scores 2.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.