Lithia Motors, Inc.
- Open
- 315.00
- Day high
- 322.42
- Day low
- 312.35
- Prev close
- 311.98
- Volume
- 158K
- Mkt cap
- $7.2B
- P/E (TTM)
- 11.0
- EPS (TTM)
- $28.63
- P/B
- 1.1
- P/S
- 0.2
- Yield
- 0.71%
- Per share
- $2.22
- ▼Insiders net selling -$230K over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions mixed (13F)
Lithia Motors, Inc. (LAD) is a Consumer Cyclical company listed on NYSE. The stock is down 13% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4). Drillr has 5 published research articles covering LAD.
Lithia Motors, Inc. (LAD) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LAD earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | $7.06 | $7.34 | +4.0% | $9.3B | +0.5% |
| Feb 11, 2026 | $8.09 | $6.74 | -16.7% | $9.2B | -0.4% |
| Oct 22, 2025 | $8.53 | $9.50 | +11.4% | $9.7B | +4.5% |
| Jul 29, 2025 | $9.24 | $10.24 | +10.8% | $9.6B | +0.3% |
| Apr 23, 2025 | $7.86 | $7.66 | -2.5% | $9.2B | -1.2% |
| Feb 12, 2025 | $7.33 | $7.79 | +6.3% | $9.2B | +2.0% |
| Oct 23, 2024 | $7.60 | $8.21 | +8.0% | $9.2B | +2.5% |
| Aug 1, 2024 | $7.03 | $7.87 | +11.9% | $9.2B | -0.7% |
| Feb 14, 2024 | $8.24 | $8.24 | +0.0% | $7.7B | -3.6% |
| Oct 25, 2023 | $10.08 | $9.25 | -8.2% | $8.3B | +0.9% |
| Jul 26, 2023 | $9.26 | $10.91 | +17.8% | $8.1B | +2.4% |
| Apr 19, 2023 | $8.77 | $8.44 | -3.8% | $7.0B | -4.6% |
LAD insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 15, 2026 | Loretz Congdon Stacydirector | Sell | 75 | $315.00 |
| Jun 11, 2026 | McIntyre Shaunadirector | Sell | 165 | $305.64 |
| May 27, 2026 | Bailey Richard J Jrdirector | Sell | 297 | $280.57 |
| May 12, 2026 | McIntyre Shaunadirector | Sell | 245 | $294.64 |
| May 1, 2026 | McKinney Cassandra M.director | Grant | 715 | — |
| May 1, 2026 | Lentz James E.director | Grant | 715 | — |
| May 1, 2026 | Loretz Congdon Stacydirector | Grant | 715 | — |
| May 1, 2026 | DEBOER SIDNEY Bdirector | Tax | 58 | $290.12 |
| May 1, 2026 | Bailey Richard J Jrdirector | Grant | 715 | — |
| May 1, 2026 | Huskins Priya Cheriandirector | Grant | 715 | — |
| May 1, 2026 | DEBOER SIDNEY Bdirector | Grant | 715 | — |
| May 1, 2026 | McIntyre Shaunadirector | Grant | 715 | — |
| May 1, 2026 | O'NEILL HEIDIdirector | Grant | 1,082 | — |
| May 1, 2026 | Miramontes Louisdirector | Grant | 715 | — |
| Mar 13, 2026 | Loretz Congdon Stacydirector | Sell | 75 | $259.33 |
Source: LAD SEC Form 4 filings, latest Jun 15, 2026. For informational purposes only — not investment advice.
See the full LAD insider & 13F page →LAD research & analysis
Is CarMax's $150M SG&A target enough to close the margin gap with AutoNation and Lithia?
CarMax's $150M SG&A savings target would close the overhead efficiency gap with franchised peers like AutoNation and Lithia on a gross-profit-absorption basis, but would only narrow the operating margin gap by about one-third. The remaining shortfall stems from CarMax's structurally lower gross margins inherent to its pure used-car model.
KMXANGPIWill CarMax's new CEO accelerate share buybacks given the stock is down 41% in 12 months?
CarMax has aggressively accelerated share buybacks from $94M in FY2024 to $589M through three quarters of FY2026, while the stock trades near book value at $42.50 after a 41% decline. With $1.74 billion in remaining authorization and strong free cash flow, the incoming permanent CEO will face a compelling valuation case for further acceleration, though elevated debt levels and operational turnaround needs may temper the pace.
KMXANCan Starboard squeeze meaningful margin from CarMax's 2.5% EBIT margin without disrupting the omnichannel pivot?
Starboard Value has nominated two directors to CarMax's board, targeting the company's 2.5% EBIT margin that trails peers AutoNation (4.5%) and Lithia (4.1%) by 160-200 basis points. The activist's cost-cutting playbook faces a core tension: CarMax's $150M SG&A savings initiative may not close the margin gap, but deeper cuts risk undermining the omnichannel platform that differentiates the company from both franchise dealers and Carvana.
KMXCVNAANHow does Starboard's KMX campaign compare to past activist wins in auto retail like Carvana and Lithia?
Starboard Value's proxy fight at CarMax targets a company with 2.5% EBIT margins and -41% one-year stock returns, significantly trailing peers Carvana (9.3% EBIT margin), Lithia Motors (4.1%), and Group 1 Automotive (4.2%). While Carvana's turnaround from near-bankruptcy shows dramatic margin improvement is possible in auto retail, CarMax's $19.4B debt load and declining quarterly earnings present a more complex challenge for activist-driven transformation.
KMXCVNAGPIIf Starboard Wins Board Seats at CarMax, Which Operational Levers Gets Pulled First?
Starboard Value's proxy contest at CarMax targets a business where operating margins have compressed from 4.7% to 2.8%, ROIC sits at just 3.1% versus peers at 7-10%, and SG&A has ballooned to 8.6% of revenue. If Starboard wins board seats, the most immediate operational levers are SG&A reduction (estimated $300M+ opportunity), inventory velocity improvement, CarMax Auto Finance balance-sheet optimization, and potential store footprint rationalization. The peer comparison to AutoNation and Lithia Motors provides a clear benchmark for what disciplined capital allocation and cost control can achieve.
KMXAN
Lithia Motors, Inc. company profile
Overview
Lithia Motors, Inc. (NYSE:LAD) is one of the largest automotive retailers in the United States, founded in 1946 and headquartered in Medford, Oregon. The company went public in 1996 and has grown through strategic acquisitions to become a major player in the automotive dealership industry. Today, Lithia operates nearly 300 retail locations across the United States and has expanded internationally with operations in the United Kingdom following its acquisition of Pendragon in 2023. The company has evolved from a traditional dealership network into an omnichannel automotive ecosystem, integrating physical stores with digital platforms to serve customers throughout their vehicle ownership journey.
Business
Lithia Motors operates as an automotive retailer in the highly fragmented car dealership industry, which serves as the primary channel between vehicle manufacturers and consumers. The automotive retail industry is characterized by franchise agreements with manufacturers, where dealerships are granted exclusive rights to sell specific brands within designated geographic territories. This creates a complex ecosystem where dealerships must balance relationships with manufacturers while competing for consumer attention and loyalty. The company operates through three primary business segments based on vehicle categories. The Domestic segment focuses on American automotive brands such as Ford, General Motors, and Chrysler vehicles, representing a significant portion of the company's traditional business. The Import segment handles foreign automotive brands including Toyota, Honda, Nissan, and other international manufacturers that have established strong market presence in the United States. The Luxury segment encompasses premium automotive brands like BMW, Mercedes-Benz, Lexus, and other high-end manufacturers, typically generating higher per-unit profits but serving a more selective customer base. Beyond traditional vehicle sales, Lithia has developed an comprehensive automotive ecosystem that includes multiple revenue streams. The company offers new and used vehicle sales, which form the core of its business model. Vehicle financing services are provided through Driveway Finance Corporation (DFC), the company's captive finance arm that originates loans and has built a portfolio exceeding $2 billion in receivables. After-sales services encompass automotive repair, maintenance, warranty services, insurance contracts, and vehicle protection services, which provide recurring revenue streams with higher margins than vehicle sales. The company has also invested heavily in digital transformation through its Driveway and GreenCars online platforms. Driveway serves as the company's primary digital marketplace for vehicle sales and customer engagement, while GreenCars focuses specifically on sustainable and electric vehicles. These platforms have achieved significant scale, reaching 12 million monthly unique visitors and contributing to the company's omnichannel strategy that integrates online and offline customer experiences.
Revenue model
Lithia Motors generates revenue through multiple interconnected business models within the automotive retail ecosystem. Vehicle sales represent the largest revenue component, including both new and used vehicle transactions. New vehicle sales operate on relatively thin margins due to manufacturer pricing controls, while used vehicle sales typically offer higher gross profit margins. The company earns revenue from the difference between wholesale acquisition costs and retail selling prices, with new vehicle gross profit per unit averaging around $3,000-$4,500 and used vehicles generating $1,500-$2,500 per unit. Finance and insurance (F&I) services provide a highly profitable revenue stream, generating approximately $2,100 per vehicle sold. This includes commissions from third-party lenders, profits from Driveway Finance Corporation's own lending operations, and sales of extended warranties, insurance products, and vehicle protection services. The company's captive finance arm, DFC, has grown significantly and achieved profitability, with penetration rates exceeding 13% of total vehicle sales. After-sales services create recurring revenue through parts sales, service labor, and maintenance contracts. This segment typically maintains gross profit margins of 55-56%, significantly higher than vehicle sales margins. The service business benefits from the installed base of vehicles sold and provides more predictable cash flows compared to the cyclical nature of vehicle sales. Several factors influence Lithia's profitability margins. Interest rates significantly impact both inventory financing costs and customer financing availability, with the company estimating potential $100 million in interest savings through effective inventory management. Vehicle inventory levels and manufacturer incentives affect gross profit per unit, while seasonal demand patterns create quarterly variations in performance. Economic conditions influence consumer purchasing power and credit availability, directly affecting both unit sales volumes and financing penetration rates. Manufacturer relationships and allocation policies determine inventory availability and pricing flexibility, while digital platform efficiency affects customer acquisition costs and conversion rates across the omnichannel ecosystem.
Competitive moat
Lithia Motors operates in the automotive dealership industry, which possesses certain structural advantages but faces increasing competitive pressures. The company's primary moat stems from franchise agreements with automotive manufacturers, which grant exclusive territorial rights to sell specific brands. These agreements create geographic monopolies and high barriers to entry, as new competitors cannot simply establish competing dealerships for the same brands in protected territories. However, this moat is only as strong as the underlying manufacturer relationships and can be terminated under certain circumstances. The company has developed additional competitive advantages through scale economies in operations, purchasing, and digital infrastructure. With nearly 300 locations and over $36 billion in annual revenue, Lithia can negotiate better terms with manufacturers, spread fixed costs across a larger base, and invest in technology platforms that smaller independent dealers cannot afford. The company's omnichannel ecosystem, including Driveway and GreenCars platforms, creates customer stickiness and data advantages that are difficult for smaller competitors to replicate. However, Lithia's moat faces several significant challenges. Direct-to-consumer sales models pioneered by Tesla and adopted by other electric vehicle manufacturers threaten the traditional dealership model entirely. Many states are reconsidering dealer protection laws, potentially allowing manufacturers to bypass dealerships for direct sales. Digital disruption from companies like Carvana, Vroom, and other online vehicle retailers has changed consumer expectations and created new competitive dynamics. Additionally, the shift toward electric vehicles may reduce the importance of after-sales service revenue, as EVs require less maintenance than traditional internal combustion engines. The company's competitive position is moderately strong within the existing dealership framework, but the fundamental business model faces structural disruption. Lithia's investments in digital platforms and omnichannel capabilities represent efforts to adapt to changing market conditions, though the ultimate success of these initiatives remains uncertain. The moat is best characterized as moderately strong in the near term but potentially vulnerable to longer-term industry transformation.
Risks & safety
Lithia Motors presents a moderate margin of safety profile with mixed financial strength indicators. • Liquidity position: Current ratio of 1.18 indicates adequate short-term liquidity, though relatively tight. Cash and short-term investments of $430 million provide reasonable cushion, but quick ratio of 0.31 suggests heavy inventory dependence. • Debt burden: Debt-to-equity ratio of 2.06 represents significant leverage, typical for automotive retail but creating financial risk. Total liabilities of $16.7 billion against $23.5 billion in assets shows substantial debt load. Interest rate sensitivity creates additional risk given inventory financing requirements. • Cash flow dynamics: Free cash flow of $253 million (Q1 2025) shows improvement from previous negative periods. Operating cash flow volatility reflects inventory timing and seasonal patterns typical of automotive retail. • Valuation metrics: P/E ratio of 9.2 suggests reasonable valuation relative to earnings. EV/EBITDA of 10.7 appears fair for the industry. Price-to-book ratio of 1.14 indicates trading near book value. • Cyclical considerations: Automotive retail is inherently cyclical, with performance tied to economic conditions, interest rates, and consumer confidence. Current SAAR expectations of 16-17 million units remain below historical averages, suggesting potential upside in favorable conditions but downside risk in recession scenarios.
Recent development
Over the past several years, Lithia Motors has executed a comprehensive transformation strategy focused on building an omnichannel automotive ecosystem while pursuing aggressive growth through acquisitions. The company's most significant strategic pivot has been the development of digital platforms, particularly Driveway and GreenCars, which have grown to attract 12 million monthly unique visitors. These platforms represent Lithia's effort to compete with online-first automotive retailers while leveraging their physical dealership network for fulfillment and service. The company completed its largest international expansion with the acquisition of Pendragon in the UK, adding 160 stores and $4 billion in revenue. This acquisition not only provided geographic diversification but also brought software-as-a-service capabilities and fleet management expertise that Lithia is leveraging across its broader network. Additionally, the company has pursued strategic partnerships, including a minority stake in Wheels, a fleet management company, to expand its commercial vehicle services. Driveway Finance Corporation (DFC) has emerged as a key strategic initiative, evolving from a startup venture to a profitable operation generating $15 million annually. The captive finance arm has built a portfolio exceeding $2 billion in receivables and achieved penetration rates above 13% of vehicle sales. This vertical integration provides higher margins and better customer control compared to relying solely on third-party financing. Operational efficiency has become a major focus, with the company implementing comprehensive cost reduction programs that have achieved $200 million in annualized savings. Management is targeting additional cost reductions while working to improve the SG&A ratio from current levels in the high 60% range to a long-term target in the mid-50% range. The company has also launched the MyDriveway portal with over 250 customer functions, representing a significant investment in customer experience and digital integration across their omnichannel ecosystem.
LAD company profile · for informational purposes only — not investment advice.
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