Lithia Motors, Inc.LAD
NYSE•Consumer Cyclical•Auto & Truck Dealerships
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.
Lithia Motors, Inc. (LAD) reported trailing twelve months revenue of $18.76B as of December 2025, a 48.2% decline year-over-year. Quarterly revenue reached $0, reflecting a contraction in sales.
Lithia Motors, Inc. generated $465.60M in TTM net income, with quarterly EBITDA of $0. The operating margin contracted from 4.4% to 0.0%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (0.0%) and net margin (0.0%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 2.4% a year ago, reflecting increased costs or interest expense.
LAD trades at a P/E of 17.2x (in line with broad market averages) and a P/S of 0.4x. The price-to-book ratio of 1.2x reflects a moderate premium to book value.
The company generated $0 in free cash flow over the trailing twelve months, a 100.0% decrease year-over-year, indicating cash generation ability. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging 3.2%. The business may lack pricing power or face rising costs.'
ROE is positive at ~11.8% on average, adequate but below the threshold typically associated with wide moats.
5 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 49.5% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF covers net income by 1.4x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
TTM revenue has contracted 12.1% — significant decline indicating deteriorating demand.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 13.5% — net buybacks are reducing shares outstanding and boosting per-share value.