Lithia Motors, Inc. LAD
Composite 44/100; the shares have moved about 43% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Balance-sheet strength ranks 25/100 — a moderate mark against it.
Valuation ranks 69/100 — a moderate point in its favour. Momentum ranks 68/100 — a moderate point in its favour.
Balance-sheet strength ranks 25/100 — a moderate mark against it. Quality ranks 28/100 — a moderate mark against it. Growth ranks 40/100 — a slight mark against it.
What the company does Lithia Motors operates automotive retail networks across the US, UK, and Canada, offering new/used vehicles, financing, insurance, and after-sales services through physical and e-commerce platforms.
Key financials LAD’s profitability metrics show mixed signals: ROE 10.9%, ROA 4.0%, and net margins 1.9%. Revenue grew 1% YoY while EPS fell 46.1%. Leverage is high (Debt/Equity 2.45) with weak coverage (Interest 2.34x) and liquidity (Current ratio 1.00).
Stock health Momentum is strong over 3m/6m/12m (39.46%, 23.47%, 40.87%) but RSI(14) at 73.30 signals overbought conditions. Dividend yield is low at 0.7% with a 7.7% payout ratio.
Price vs fair value The stock trades at a discount to both our fair-value estimate and analyst target: - 53.30% discount to our fair-value estimate of 620.91 - 4.62% discount to the 12-month target of 423.75 Recent news highlights earnings beats and margin strength, yet valuation concerns persist: - Q2 earnings beat on used margins and financing growth (Zacks) - Stock surged after earnings call (Motley Fool) - Simply Wall St. notes valuation near fair value despite cheap earnings (Simply Wall St.)
Looking forward Forward P/E of 9.78 and PEG of 0.45 suggest undemanding multiples, but weak profitability and high leverage remain risks. Analysts cite record revenues amid market challenges as a key driver for upside potential.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.