|LAD Overview
LAD

LITHIA MOTORS INC

Consumer Discretionary • CIK: 0001023128

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Market Cap
$8.20B
P/E (TTM)
9.1x
Rev Growth (TTM)
Net Margin (TTM)
2.4%
FCF Yield (TTM)
-0.5%
FCF Margin (TTM)
-0.1%

LATEST EARNINGS

Q4 FY2025
2 days ago
View source
Revenue
Net Income
EPS
  • 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.

Cash Flow Health

Free Cash Flow3/8 positive
TTM$-42M
Q3 '25
$-207M-193%
Q2 '25
$-71M-128%
FCF Margin
TTM-0.1%
Q3 '25-2.1%-190%
Sector: 4.9%Below Avg
OCF Margin0.8%
OCF/NI0.33x
CapEx Coverage0.9x
FCF Yield-0.5%
FCF Growth (2Y)
Cash Conversion Cycle
76 days
DSO: 12+DIO: 68DPO: 4

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM9.9%
Div Yield0.7%
+
Buyback (TTM)9.2%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)0.7%
Free Cash Flow (TTM)$-42.4M
Stock Repurchases (TTM)$755.0M
Capital Return / FCF-1913.2%
Est. Dividends Paid (TTM)$56.1M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
14.0%
P25MedianP75
75th pctl (med: 0.2%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
3.3%
Asset Turnover
1.59x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 5.3%14.0% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
8.03x
8Q:
Invested Cap Turn
4.20x
8Q:
CapEx Intensity
3.8%
8Q:
CapEx/Depreciation
1.07x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q4 2024Q4 2024Q1 2024Q4 2023
Revenue
$37.6B
$9.7B1.0%
$9.6B4.4%
$9.2B0.1%
$9.2B0.5%
$9.2B0.1%
$9.2B7.8%
$8.6B11.6%
$7.7B
Operating Income
$1.7B
$421.6M0.9%
$425.3M4.7%
$406.3M2.9%
$418.6M0.8%
$421.9M7.2%
$393.6M15.3%
$341.4M8.3%
$372.5M
Net Income
$900.7M
$217.1M15.2%
$256.1M22.2%
$209.5M3.9%
$218.0M5.2%
$207.3M3.2%
$214.2M31.7%
$162.6M23.8%
$213.5M
Operating Cash Flow
$294.8M
$-98.4M1158.1%
$9.3M97.1%
$322.1M421.2%
$61.8M71.8%
$219.3M247.8%
$-148.4M150.8%
$292.4M199.1%
$-295.2M
Free Cash Flow
$-42.4M
$-207.3M192.8%
$-70.8M127.9%
$253.4M1531.6%
$-17.7M111.3%
$157.1M156.4%
$-278.5M230.9%
$212.8M158.8%
$-361.7M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
9.1x
Valuation Lenses
Earnings
9.1x
vs sector
Cash Flow
-237.1x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
0.6P/E per %ROIC
ROIC: 14.0%
Shareholder Returns
Dividend
0.7%
Buyback
9.2%
Total Yield
9.9%
Market Cap$8.20B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
53/100
Average

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

Returns on Capital

Return on Equity (ROE)Below Avg
13.3%
8Q:
Return on Invested Capital (ROIC)Top 25%
14.0%
8Q:
vs Sector:0.2%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 3.3%
Asset Turnover: 1.59x

Earnings Quality

Cash Conversion

0.33x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin15.2%

Capital Efficiency

Invested Capital Turnover4.20x

Working Capital

Cash Conversion Cycle76 days

Growth Quality & Momentum

Growth Rates

Revenue Growth YoY
N/A
OpInc Growth YoY
-0.1%
EPS Growth YoY
N/A
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
15.2%
Operating
4.4%
Below Avg in sector
Net
2.4%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-2.5 pts
FCF: -0.1% | Net: 2.4%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $468.60M
Interest Coverage
+Net cash position: $468.60M
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis