Lithia Motors, Inc. (LAD) Financial Ratios
30 years of historical data (1996–2025) · Consumer Cyclical · Auto - Dealerships
EV/EBITDA
↑
11.38
+19% vs avg
5yr avg: 9.53
30Y Low6.2·High17.4
P/FCF
↑
34.61
↓-43% vs avg
5yr avg: 60.34
30Y Low2.4·High131.4
P/B Ratio
↓
1.12
↓-22% vs avg
5yr avg: 1.42
30Y Low0.3·High3.5
ROE
↓
12.3%
↑-36% vs avg
5yr avg: 19.2%
30Y Low-67%·High30%
Debt/EBITDA
↑
7.97
↑+46% vs avg
5yr avg: 5.44
30Y Low2.7·High9.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
LAD Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Lithia Motors, Inc. trades at 9.0x earnings, roughly in line with its 5-year average of 8.8x, sitting at the 17th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 19.4x, the stock trades at a discount of 54%. On a free-cash-flow basis, the stock trades at 34.6x P/FCF, 43% below the 5-year average of 60.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.6B | $8.4B | $9.7B | $9.1B | $5.8B | $8.6B | $7.1B | $3.4B | $1.9B | $2.9B | $2.5B |
| Enterprise Value | $21.0B | $22.8B | $23.1B | $19.5B | $13.5B | $13.4B | $11.1B | $7.1B | $5.3B | $5.8B | $4.8B |
| P/E Ratio → | 9.01 | 10.28 | 12.05 | 9.07 | 4.63 | 8.12 | 15.00 | 12.67 | 7.03 | 11.65 | 12.54 |
| P/S Ratio | 0.18 | 0.22 | 0.27 | 0.29 | 0.21 | 0.38 | 0.54 | 0.27 | 0.16 | 0.28 | 0.28 |
| P/B Ratio | 1.12 | 1.27 | 1.45 | 1.45 | 1.10 | 1.85 | 2.65 | 2.34 | 1.56 | 2.63 | 2.71 |
| P/FCF | 34.61 | 43.99 | 131.43 | — | — | 5.60 | 12.19 | 8.61 | 5.17 | 65.54 | — |
| P/OCF | 12.24 | 15.55 | 22.79 | — | — | 4.79 | 9.45 | 6.56 | 3.60 | 19.15 | 27.19 |
P/E links to full P/E history page with 30-year chart
LAD EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Lithia Motors, Inc.'s enterprise value stands at 11.4x EBITDA, 19% above its 5-year average of 9.5x. This is roughly in line with the Consumer Cyclical sector median of 11.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.61 | 0.64 | 0.63 | 0.48 | 0.59 | 0.84 | 0.56 | 0.45 | 0.57 | 0.55 |
| EV / EBITDA | 11.38 | 12.36 | 11.78 | 9.95 | 6.24 | 7.33 | 13.59 | 11.71 | 10.11 | 12.34 | 12.41 |
| EV / EBIT | 14.69 | 12.07 | 12.38 | 10.29 | 6.91 | 8.32 | 14.67 | 14.02 | 11.58 | 13.68 | 14.48 |
| EV / FCF | — | 118.75 | 314.06 | — | — | 8.72 | 19.13 | 17.85 | 14.60 | 132.42 | — |
LAD Profitability
Margins and return-on-capital ratios measuring operating efficiency
Lithia Motors, Inc. earns an operating margin of 3.8%, roughly in line with the Consumer Cyclical sector average. Operating margins have compressed from 5.5% to 3.8% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 12.3% is modest. ROIC of 5.2% represents adequate returns on invested capital versus a sector median of 5.8%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 15.2% | 15.2% | 15.4% | 16.8% | 18.3% | 18.7% | 16.9% | 15.4% | 15.0% | 15.0% | 15.0% |
| Operating Margin | 3.8% | 3.8% | 4.4% | 5.5% | 6.9% | 7.3% | 5.3% | 3.9% | 3.8% | 4.1% | 3.9% |
| Net Profit Margin | 2.2% | 2.2% | 2.2% | 3.2% | 4.4% | 4.6% | 3.6% | 2.1% | 2.2% | 2.4% | 2.3% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.3% | 12.3% | 12.4% | 17.4% | 25.2% | 28.9% | 22.8% | 20.4% | 23.3% | 24.6% | 22.7% |
| ROA | 3.4% | 3.4% | 3.8% | 5.8% | 9.6% | 11.1% | 6.7% | 4.7% | 5.3% | 5.8% | 5.6% |
| ROIC | 5.2% | 5.2% | 6.4% | 8.6% | 13.0% | 15.5% | 8.8% | 7.6% | 7.8% | 8.5% | 8.5% |
| ROCE | 8.2% | 8.2% | 10.1% | 12.8% | 18.9% | 23.5% | 15.5% | 15.5% | 17.0% | 19.0% | 19.0% |
LAD Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Lithia Motors, Inc. carries a Debt/EBITDA ratio of 8.0x, which is highly leveraged (81% above the sector average of 4.4x). Net debt stands at $14.3B ($14.7B total debt minus $342M cash). Interest coverage of just 2.4x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.22 | 2.22 | 2.08 | 1.80 | 1.52 | 1.06 | 1.57 | 2.57 | 2.87 | 2.74 | 2.63 |
| Debt / EBITDA | 7.97 | 7.97 | 7.05 | 5.79 | 3.69 | 2.71 | 5.13 | 6.20 | 6.59 | 6.36 | 6.17 |
| Net Debt / Equity | — | 2.16 | 2.02 | 1.65 | 1.48 | 1.03 | 1.51 | 2.52 | 2.85 | 2.69 | 2.57 |
| Net Debt / EBITDA | 7.78 | 7.78 | 6.85 | 5.31 | 3.57 | 2.62 | 4.93 | 6.06 | 6.53 | 6.23 | 6.04 |
| Debt / FCF | — | 74.76 | 182.63 | — | — | 3.11 | 6.94 | 9.24 | 9.43 | 66.88 | — |
| Interest Coverage | 2.42 | 2.42 | 3.49 | 5.38 | 11.67 | 12.81 | 7.12 | 3.81 | 3.85 | 5.68 | 6.81 |
LAD Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.17x means Lithia Motors, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.26x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 1.41x to 1.17x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.17 | 1.17 | 1.19 | 1.41 | 1.46 | 1.38 | 1.35 | 1.20 | 1.20 | 1.21 | 1.19 |
| Quick Ratio | 0.26 | 0.26 | 0.28 | 0.44 | 0.38 | 0.38 | 0.34 | 0.25 | 0.25 | 0.28 | 0.27 |
| Cash Ratio | 0.05 | 0.05 | 0.06 | 0.19 | 0.08 | 0.07 | 0.07 | 0.03 | 0.01 | 0.02 | 0.03 |
| Asset Turnover | — | 1.50 | 1.56 | 1.58 | 1.88 | 2.05 | 1.66 | 2.08 | 2.20 | 2.15 | 2.26 |
| Inventory Turnover | 5.21 | 5.21 | 5.18 | 5.43 | 6.76 | 7.79 | 4.37 | 4.40 | 4.25 | 4.02 | 4.16 |
| Days Sales Outstanding | — | 11.00 | 12.48 | 13.00 | 10.53 | 10.96 | 17.07 | 14.54 | 16.35 | 18.89 | 17.57 |
LAD Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Lithia Motors, Inc. returns 15.2% to shareholders annually — split between a 0.7% dividend yield and 14.5% buyback yield. The payout ratio of 6.7% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 11.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 0.7% | 0.6% | 0.6% | 0.8% | 0.5% | 0.4% | 0.8% | 1.5% | 0.9% | 1.0% |
| Payout Ratio | 6.7% | 6.7% | 7.0% | 5.3% | 3.6% | 3.7% | 6.2% | 10.2% | 10.4% | 10.8% | 12.2% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.1% | 9.7% | 8.3% | 11.0% | 21.6% | 12.3% | 6.7% | 7.9% | 14.2% | 8.6% | 8.0% |
| FCF Yield | 2.9% | 2.3% | 0.8% | — | — | 17.8% | 8.2% | 11.6% | 19.3% | 1.5% | — |
| Buyback Yield | 14.5% | 11.4% | 3.8% | 0.5% | 11.9% | 2.7% | 0.7% | 0.1% | 8.0% | 1.2% | 4.6% |
| Total Shareholder Yield | 15.2% | 12.0% | 4.4% | 1.1% | 12.7% | 3.1% | 1.1% | 0.9% | 9.4% | 2.1% | 5.5% |
| Shares Outstanding | — | $25M | $27M | $28M | $28M | $29M | $24M | $23M | $25M | $25M | $26M |
Peer Comparison
Compare LAD with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 LADYou | $7B | 9.0 | 11.4 | 34.6 | 15.2% | 3.8% | 12.3% | 5.2% | 8.0 |
 AN | $7B | 12.0 | 10.8 | — | 17.0% | 4.8% | 27.1% | 8.5% | 6.4 |
 PAG | $11B | 12.2 | 13.8 | 15.3 | 16.4% | 4.0% | 17.3% | 6.9% | 6.1 |
 SAH | $3B | 23.5 | 9.9 | 6.5 | 14.6% | 3.6% | 11.1% | 7.8% | 6.0 |
 ABG | $4B | 8.0 | 9.4 | 6.7 | 16.6% | 5.6% | 13.3% | 8.0% | 5.8 |
 GPI | $4B | 13.9 | 9.3 | 9.8 | 15.5% | 4.2% | 11.2% | 8.5% | 5.5 |
 RUSHA | $6B | 21.8 | 14.8 | 9.6 | 18.7% | 5.3% | 12.0% | 8.2% | 3.3 |
 CVNA | $87B | 47.4 | 39.5 | 97.6 | 20.6% | 9.3% | 50.4% | 34.3% | 0.3 |
 KMX | $6B | 12.4 | 22.6 | 36.5 | 11.4% | 2.8% | 8.1% | 2.4% | 17.6 |
 VRM | $65M | -0.1 | — | — | 100.0% | -1092.2% | -362.1% | -10.0% | — |
 ACVA | $1B | -16.7 | — | 16.4 | 62.1% | -8.1% | -15.2% | -13.5% | — |
| Consumer Cyclical Median | — | 19.4 | 11.4 | 15.3 | 36.8% | 2.9% | 5.7% | 5.8% | 4.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonLAD — Frequently Asked Questions
Quick answers to the most common questions about buying LAD stock.
What is Lithia Motors, Inc.'s P/E ratio?
Lithia Motors, Inc.'s current P/E ratio is 9.0x. The historical average is 13.3x. This places it at the 17th percentile of its historical range.
What is Lithia Motors, Inc.'s EV/EBITDA?
Lithia Motors, Inc.'s current EV/EBITDA is 11.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.4x.
What is Lithia Motors, Inc.'s ROE?
Lithia Motors, Inc.'s return on equity (ROE) is 12.3%. The historical average is 14.1%.
Is LAD stock overvalued?
Based on historical data, Lithia Motors, Inc. is trading at a P/E of 9.0x. This is at the 17th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Lithia Motors, Inc.'s dividend yield?
Lithia Motors, Inc.'s current dividend yield is 0.75% with a payout ratio of 6.7%.
What are Lithia Motors, Inc.'s profit margins?
Lithia Motors, Inc. has 15.2% gross margin and 3.8% operating margin.
How much debt does Lithia Motors, Inc. have?
Lithia Motors, Inc.'s Debt/EBITDA ratio is 8.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.