Lithia Motors, Inc. (LAD) Stock

Lithia Motors, Inc. (LAD) is a Consumer Discretionary stock trading at $370.80 (as of 2026-08-20), with a market capitalization of $8.15B and a trailing P/E of 11.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Lithia Motors, Inc. is an automotive retailer in the United States operating through Domestic, Import, and Luxury segments. It sells new and used vehicles, provides financing and vehicle protection services, and offers vehicle repair and maintenance, serving customers through store locations and online websites.

Understand Lithia Motors, Inc.: how it makes money

Lithia Motors operates U.S. auto dealerships that sell new and used vehicles, and it also makes money from related services like vehicle financing and insurance, warranties and vehicle protection, vehicle repair and maintenance, and sales of parts and body products through its Driveway and GreenCars brands (including online sales).

The profit model combines one time vehicle retail revenue with recurring and attach driven revenue streams (service, body and parts, plus finance and insurance), and it scales by adding store footprint and acquired store annualized revenues.

Business quality (Weak): Lithia is a multi revenue stream retailer, but the reported operating margin is low, so execution across both retail vehicle sales and higher attachment activities matters.

Valuation: At 10× earnings, LAD trades 46% below the Retail average (19×). Note: one-time items can distort reported P/E.

Bull case

Diversified dealership revenue streams: In addition to new vehicle retail, the business also has service, body and parts revenue and finance and insurance revenue, which can help stabilize results when vehicle sales conditions change.
Scales through footprint growth: Lithia operates 278 stores and sells online through about 300 websites, and it also reports annualized revenues from acquired stores.
Brand and channel expansion: The company sells vehicle related products through the Driveway and GreenCars brand names, including retail and wholesale activity.

Bear case

Low operating profitability: The latest reported operating margin is 3.6%, which leaves limited room for cost increases or weaker revenue conditions.
Dependence on vehicle retail volumes and mix: New vehicle retail revenue is a major component of the reported operating revenue candidates, so changes in vehicle demand or mix can affect overall performance.
Execution risk from acquisitions: Annualized revenues from acquired stores are part of the revenue picture, so results depend on realizing expected contributions after acquisition.

Valuation — source: SEC EDGAR (first-party)
Price	$370.80
Market Cap	$8.15B
P/E Ratio	11.4
EV / EBITDA	4.1
Price / Book	1.27
Price / Sales	0.21
FCF Yield	-6.2%
DCF Value (model)	$807.04
DCF Upside vs Price	117.6%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$37.63B
Net Margin	2.2%
Revenue Growth (YoY)	2.2%
EPS Growth (YoY)	16.9%
FCF Growth (YoY)	72.3%

Financial Health — source: SEC EDGAR
Altman Z-Score	2.41 (grey)

Valuation vs Sector & Industry
Stock P/E	11.4
Sector P/E (Consumer Discretionary)	20.5
Industry P/E (Retail)	19.5
vs Sector	-44.3%
vs Industry	-41.6%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($805.15M)
Institutional Holders Tracked	10
Congressional Trades (recent)	4

Company
Sector	Consumer Discretionary
Industry	Retail
CEO	Bryan DeBoer
Employees	30,000
Country	US
IPO Date	1996-12-18

Related Companies (Business model: Brick-and-Mortar Retail (incl. Omnichannel); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.