LAD

LITHIA MOTORS INC

Consumer Discretionary • CIK: 0001023128

Market Cap

$8.41B

P/E (TTM)

10.3x

Rev Growth (TTM)

+4.0%

Net Margin (TTM)

2.2%

FCF Yield (TTM)

0.1%

FCF Margin (TTM)

0.0%

Filing Intelligence

6.0/10

10-K filed Feb 25, 2026 • FY

Executive Summary

Lease liabilities total $877.7 million, comprising $765.3 million in operating leases and $112.4 million in finance leases.. Vehicle Operations revenue grew 4.0% year-over-year. See detailed pass...

Key Concerns

●Gross profit in new vehicles declined significantly due to lower per-unit margins and unit sales, reflecting a normalization trend.
●Correction of prior year immaterial error in interest and fee income recognition.
●Large amounts of goodwill and franchise value subject to annual impairment testing.

Key Strengths

●Revenue grew overall, driven by acquisitions and same-store growth in aftersales and finance/insurance, but new and used vehicle margins...
●Aftersales operations remain a strong contributor to profitability, showing robust growth in revenue and gross profit driven by service...
●The company is experiencing increased unit sales in used vehicles and higher average selling prices, contributing to revenue growth in this...

View Full Quarterly Insights →

LATEST EARNINGS

•

Q4 FY2025

•

about 2 months ago

•View source

Revenue

$9.20B

—

Net Income

$137.90M

-35.5%

EPS

$5.72

-28.3%

Gross

14.9%↓ -0.1%

Operating

3.7%↓ -0.8%

Net

1.5%↓ -0.8%

•Record full year revenues of $37.63 billion, a 4.0% increase year-over-year.
•Full year diluted earnings per share increased 9.7% to $32.32.
•Used vehicle revenue increased 6.1% and used retail units increased 4.7% on a same store basis in the quarter.
•Aftersales revenue increased 10.9% and gross profit increased by 9.8% on a same store basis in the quarter.

View Full Earnings →

Cash Flow Health

Free Cash Flow4/8 positive

TTM$6M

Q4 '25

$31M+115%

Q3 '25

$-207M-193%

FCF Margin

TTM0.0%

Q4 '250.3%+115%

Sector: 2.7%Below Avg

OCF Margin0.9%

OCF/NI0.44x

CapEx Coverage1.0x

FCF Yield0.1%

FCF Growth (2Y)–

Cash Conversion Cycle

76 days

DSO: 12+DIO: 68−DPO: 4

View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Shareholder Friendly

Total Shareholder YieldTTM

TTM12.1%

Div Yield0.7%

Buyback (TTM)11.4%

Strong capital returns to shareholders

Dividend & Payout Metrics

Dividend Yield (TTM)0.7%

FCF Payout Ratio950.8%

Free Cash Flow (TTM)$5.8M

Stock Repurchases (TTM)$960.9M

Capital Return / FCF17520.7%

Est. Dividends Paid (TTM)$55.1M

Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM

9.3%

Stable

-0.0% YoY-1.5%

P25MedianP75

75th pctl (med: 0.1%)

DuPont BreakdownROIC = Margin × Turn × (1+D/E)

NOPAT Margin

3.2%

8Q: 3.3%

Asset Turnover

1.56x

8Q: 1.59x

Leverage (1+D/E)

2.47x

D/E: 1.47x

DuPont: 12.2% ≈ 9.3% ROIC

Asset & CapEx Efficiency

Fixed Asset Turn

7.94x

8Q:8.01x

-22.4%

Invested Cap Turn

4.14x

8Q:4.20x

-9.3%

CapEx Intensity

3.9%

8Q:3.7%

CapEx/Depreciation

1.20x

Asset-based ROIC formula

Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

Metric	TTM	Q4 2025	Q3 2025	Q2 2025	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024
Revenue	$37.6B	$9.2B↓4.9%	$9.7B↑1.0%	$9.6B↑4.4%	$9.2B↑0.1%	$9.2B↓0.5%	$9.2B↓0.1%	$9.2B↑7.8%	$8.6B
Operating Income	$1.6B	$341.4M↓19.0%	$421.6M↓0.9%	$425.3M↑4.7%	$406.3M↓1.3%	$411.6M↓2.4%	$421.9M↑7.2%	$393.6M↑15.3%	$341.4M
Net Income	$819.6M	$136.9M↓36.9%	$217.1M↓15.2%	$256.1M↑22.2%	$209.5M↓1.5%	$212.7M↑2.6%	$207.3M↓3.2%	$214.2M↑31.7%	$162.6M
Operating Cash Flow	$356.7M	$123.7M↑225.7%	$-98.4M↓1158.1%	$9.3M↓97.1%	$322.1M↑421.2%	$61.8M↓71.8%	$219.3M↑247.8%	$-148.4M↓150.8%	$292.4M
Free Cash Flow	$5.8M	$30.5M↑114.7%	$-207.3M↓192.8%	$-70.8M↓127.9%	$253.4M↑1531.6%	$-17.7M↓111.3%	$157.1M↑156.4%	$-278.5M↓230.9%	$212.8M
Total Equity	N/A

Income Statement Cash Flow Statement Balance Sheet

Valuation Analysis

Fair Value

Price-to-EarningsTTM

10.3x

Volatile

8Q: 38.9x+261%

Multiple expansion without fundamental improvement

Valuation Lenses

Earnings

10.3x

vs – sector

Cash Flow

2400.6x

EV/FCF vs –

Growth-Adj

1.1xPEG

Fair for growth

Quality-Adj

1.1P/E per %ROIC

ROIC: 9.3%

Shareholder Returns

Dividend

0.7%

Buyback

11.4%

Total Yield

12.1%

Market Cap$8.41B

EV$13.92B

Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score

62/100

High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg

12.1%

8Q:–

Return on Invested Capital (ROIC)Top 25%

9.3%

8Q:–

Flat

vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 3.2%

Asset Turnover: 1.56x

Earnings Quality

Cash Conversion

0.44x

OCF / Net Income

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin15.2%

Capital Efficiency

Invested Capital Turnover4.14x

Working Capital

Cash Conversion Cycle76 days

Growth Quality & Momentum

Moderate Growth

Growth Quality Score

54/100

Growth 40%

Margins 30%

FCF 20%

Consistency 10%

Growth Rates

Revenue Growth YoY

4.0%

OpInc Growth YoY

-17.1%

EPS Growth YoY

9.7%

FCF 3Y CAGR

N/A

Margin Quality & Sustainability

Low Quality

Profitability Cascade

Gross

15.2%

Operating

4.2%

Below Avg in sector

Net

2.2%

Margins Unknown

Earnings Quality Signals

SBC / Revenue

—

FCF vs Net Gap

-2.2 pts

FCF: 0.0% | Net: 2.2%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Leveraged

Net Debt / EBITDA

–Net Debt: $9.29B

Interest Coverage

–

Balance sheet risk & solvency analysis