LITHIA MOTORS INC
$296.52
−0.65 (−0.22%) · delayed · Nov 13, 2026
Five-year price
52w $239.78 to $439.49
- Market cap
- $6.4B
- Enterprise value
- $15.7B
- P/E
- 9.2×
- 9.1× on 3y avg EPS
- EV / EBIT
- 9.8×
- FCF yield
- 0.1%
- ROIC
- 7.5%
- Debt / equity
- 1.47
- Piotroski F
- 3/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
50
- ○ROIC > 12% (5y avg)5y avg ROIC 11.4%
- ●ROE > 15% (5y avg)5y avg ROE 17.5%
- ●Stable operating marginsMargin volatility 1.3% (σ, 5y)
- ○Earnings convert to cashFCF / net income 2% (5y avg)
- ●Growing revenueRevenue CAGR 5y 23.4%
- ○Shrinking share countDiluted shares 5.4% over 5y
Value
80
- ●P/E below 15P/E 9.2
- ●EV/EBIT below 12EV/EBIT 9.8
- ○FCF yield above 6%FCF yield 0.1%
- ●Price below Graham NumberGraham Number $471.27
- ●P/B below 3P/B 1.0
Safety
0
- ○Debt / equity below 0.5D/E 1.47
- ○Debt payable in < 4 yrs of earningsNet debt $9.3B
- ○Interest coverage > 8xCoverage 2.2x
- ○Current ratio > 1.5Current ratio 1.17
- ○Piotroski F-score ≥ 6F-score 3/9
Graham Defensive
86
- ●Adequate size (revenue > $2B)Revenue $37.6B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.17
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 246%
- ●Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 9.1
- ●P/E × P/B ≤ 22.5Product 8.8
Valuation lab
What do you have to believe?
At $296.52, the market is pricing in about 79.7% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $9.3B · 22M shares · 5y revenue CAGR 23.4%
Intrinsic value
$-413.80
Price
$296.52
Margin of safety
172%
What the price implies
The market is paying for 79.7% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
70% of the value sits beyond year 10. That means the answer depends mostly on the long-run assumptions.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 8,678 | 10,087 | 11,821 | 12,673 | 13,127 | 22,832 | 28,188 | 31,042 | 36,188 | 37,635 |
| Gross profit | 1,301 | 1,516 | 1,777 | 1,954 | 2,224 | 4,259 | 5,152 | 5,229 | 5,561 | 5,733 |
| Operating income | 338 | 409 | 447 | 495 | 693 | 1,663 | 1,941 | 1,692 | 1,569 | 1,595 |
| Operating margin | 3.9% | 4.1% | 3.8% | 3.9% | 5.3% | 7.3% | 6.9% | 5.5% | 4.3% | 4.2% |
| Pre-tax income | 284 | 347 | 338 | 375 | 649 | 1,485 | 1,730 | 1,362 | 1,071 | 1,108 |
| Income tax | 86 | 102 | 72 | 104 | 178 | 422 | 468 | 351 | 255 | 283 |
| Net income | 197 | 245 | 266 | 272 | 470 | 1,060 | 1,251 | 1,001 | 797 | 820 |
| EPS (diluted) | 7.72 | 9.75 | 10.86 | 11.60 | 19.53 | 36.54 | 44.17 | 36.29 | 29.45 | 32.32 |
| Diluted shares | 26 | 25 | 25 | 23 | 24 | 29 | 28 | 28 | 27 | 25 |
Who owns it