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 $37.73B as of March 2026, a 2.5% increase year-over-year. Quarterly revenue reached $9.27B, reflecting continued top-line momentum.
Lithia Motors, Inc. generated $710.50M in TTM net income, with quarterly EBITDA of $422.10M. The operating margin contracted from 4.4% to 3.6%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (3.6%) and net margin (1.1%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 2.3% a year ago, reflecting increased costs or interest expense.
LAD trades at a P/E of 10.3x (below the broader market average) and a P/S of 0.2x. The price-to-book ratio of 1.1x reflects a moderate premium to book value.
The company reported negative free cash flow of $-205.50M, indicating cash consumption over the period. The balance sheet shows $25.75B in total assets with no in long-term debt against $6.38B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~4.2% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~12.5% on average, adequate but below the threshold typically associated with wide moats.
Only 3 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
TTM revenue has grown consistently (7 of 7 quarters up), with ~11.8% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 9.5% — watch for continued compression, which may signal competitive or cost pressure.
Free cash flow has been negative in 5 of the last 8 quarters — earnings are not translating to cash.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
5 of the last 8 quarters had negative FCF — inconsistent cash generation raises sustainability concerns.
Shares decreased 14.0% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation