Lithia Motors, Inc.

Valuation Analysis

About the Company

Lithia Motors, Inc. en bref

Lithia Motors, Inc. (LAD) is currently trading at 256,95 € with a market capitalization of 5,9 Md €. The trailing P/E ratio stands at 10.28x, with a forward P/E of 7.22x. The 52-week range spans from 209,03 € to 314,32 €; the current price is 18.3% below the yearly high. Year-over-year revenue growth stands at +1.0%. The net profit margin stands at 1.88%.

💰 Dividende

Lithia Motors, Inc. pays an annual dividend of 1,99 € per share, representing a yield of 0.77%. The payout ratio stands at 7.68%.

📊 Avis des analystes

16 analystes évaluent Lithia Motors, Inc. (LAD) au consensus : Acheter. L'objectif de cours moyen est de 322,77 €, soit un potentiel de +25.61% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 261,53 € à 391,42 €.

Lithia Motors, Inc. : la thèse d'investissement en détail

Lithia Motors, Inc. (LAD) operates in the Consumer Cyclical — specifically Auto & Truck Dealerships — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

Le scénario haussier

Wall Street consensus sits at Buy with an average price target implying roughly 25.61% upside from current levels — analyst sentiment is firmly constructive. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

Le scénario baissier

Revenue growth has slowed to just 1%, which is below nominal GDP — the business is no longer outgrowing the broader economy. With a net margin of just 1.88%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. The debt-to-equity ratio of 251.65% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valorisation en contexte

With a PEG ratio of 0.68, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

À surveiller

• The forward P/E of 7.22x is meaningfully below the trailing 10.28x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 25.61% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Thèse d'investissement : forces et faiblesses

Aperçu technique

The price is in a transition zone relative to the moving averages — no clear signal.

Profil de risque

The data points to market-like volatility, elevated short interest (18.13%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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