Is LAD a good stock to buy right now?

Based on our 6-factor quantitative model, LITHIA MOTORS INC (LAD) receives a "Hold" rating with a composite score of 44.2/100. It is ranked #1,765 out of 4,446 stocks. Key factor scores: Quality 50/100, Value 80/100, Momentum 28/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for LAD?

LITHIA MOTORS INC (LAD) has a "Hold" rating and 3-star score. The composite score of 44.2 ranks it #1,765 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is LAD in?

LITHIA MOTORS INC operates in the Consumer Discretionary sector (Retail industry) with a market cap of $5.84 billion. It is classified as a mid-cap stock.

Does LAD pay a dividend?

Yes, LAD pays a dividend with a current yield of 0.68%. For every $1,000 invested, you would receive approximately $6.80 in annual dividend income.

What is LAD's P/E ratio?

LAD has a trailing P/E ratio of 6.69x. The Consumer Discretionary sector average is 24.5x. This below-average P/E may indicate the stock is undervalued.

How profitable is LAD?

LAD's quality factor score is 50/100. Gross margin: 15.4%. ROE: 13.7% vs sector average 6.2%. Margins are moderate to low, reflecting competitive market dynamics.

How is LAD valued compared to peers?

LAD's value factor score is 80/100 (higher = cheaper). Key multiples: P/E 6.7x, EV/EBITDA 3.1x. The stock appears attractively valued versus peers.

What is LAD's debt level?

LAD's debt-to-equity ratio is 279%. Sector average: 89%. Elevated leverage increases credit risk.

LAD has a beta of 1.05, meaning it tracks the market. Stability score: 65/100.

Does LAD have high short interest?

LAD's short interest factor score is 8/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

LAD Stock Analysis: Top Mid-Cap Hold (Score 44.2/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
LAD	+2.46%	+8.45%	+4.31%	-17.82%	-6.64%	-	-	-
Industry Proxy XLY	+0.13%	+4.38%	-1.35%	-5.46%	-39.92%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	+2.53%	+4.85%	+3.97%	-17.46%	-36.16%	-	-	-
Alpha vs Sector	+2.33%	+4.07%	+5.66%	-12.36%	+33.28%	-	-	-

Metric	LAD	Benchmark
P/E Ratio	6.7x	-73%
EV/EBITDA	3.1x	-36%
Price / Book	0.9x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
CASY CASEYS GENERAL STORES INC	57	50	68	67	42.2x	16.9%	24.0%	3.8%	0.3%	123.0x	$27.2B	VS
TGT TARGET CORP	53	50	70	56	16.2x	20.7%	28.4%	3.4%	-0.7%	89.0x	$54.5B	VS
APEI AMERICAN PUBLIC EDUCATION INC	53	49	58	72	78.3x	4.6%	52.8%	2.1%	6.8%	32.0x	$1.1B	VS
LINC LINCOLN EDUCATIONAL SERVICES CORP	52	50	48	75	116.7x	5.6%	59.2%	2.3%	37.4%	147.0x	$1.3B	VS
FIVE FIVE BELOW, INC	52	50	56	73	105.5x	5.4%	32.5%	3.1%	26.5%	125.0x	$13.0B	VS
IMKTA INGLES MARKETS INC	51	50	51	62	17.4x	6.2%	23.9%	1.9%	0.4%	57.0x	$1.7B	VS
PRDO PERDOCEO EDUCATION Corp	51	50	70	57	14.2x	16.7%	100.0%	20.4%	27.1%	28.0x	$2.4B	VS
MCRI MONARCH CASINO & RESORT INC	51	50	66	47	16.7x	19.7%	24.5%	19.4%	11.5%	33.0x	$1.7B	VS
FCFS FirstCash Holdings, Inc.	49	50	29	66	34.7x	10.8%	50.2%	8.0%	26.6%	98.0x	$8.4B	VS
ESCA ESCALADE INC	48	50	65	51	15.2x	9.0%	26.1%	6.2%	8.4%	11.0x	$249M	VS
LAD LITHIA MOTORS INC	44	50	80	28	6.7x	13.7%	15.4%	2.4%	4.8%	279.0x	$5.8B

Key Ratio	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Gross Margin %	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.1%
Operating Margin %	0.0%	0.0%	0.0%	0.1%	0.1%	0.1%	0.1%	0.0%	0.0%	0.0%	0.0%
EBITDA Margin %	0.1%	0.0%	0.1%	0.1%	0.1%	0.1%	0.1%	0.0%	0.0%	0.0%	0.0%
Net Margin %	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
FCF Margin %	-1.3%	-	-	-	-	-	2.9%	3.2%	3.1%	0.4%	-0.2%
ROE %	0.1%	0.1%	0.1%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%
ROA %	0.0%	0.0%	0.0%	0.1%	0.1%	0.1%	0.1%	0.0%	0.0%	0.1%	0.1%
ROIC %	6.5%	19.0%	18.6%	21.4%	29.4%	18.7%	8.5%	7.9%	7.7%	8.1%	8.2%

Key Ratio

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

Gross Margin %

0.2%

0.1%

Operating Margin %

0.0%

0.1%

0.0%

EBITDA Margin %

0.1%

0.0%

0.1%

0.0%

Net Margin %

0.0%

FCF Margin %

-1.3%

2.9%

3.2%

3.1%

0.4%

-0.2%

ROE %

0.1%

0.2%

ROA %

0.0%

0.1%

0.0%

0.1%

ROIC %

6.5%

19.0%

18.6%

21.4%

29.4%

18.7%

8.5%

7.9%

7.7%

8.1%

8.2%

Line Item	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
	$37.7B	$37.6B	$36.2B	$31.0B	$28.2B	$22.8B	$13.1B	$12.7B	$11.8B	$10.1B	$8.7B	$7.9B
	—	$31.9B	$30.6B	$25.8B	$23.0B	$18.6B	—	—	—	—	—	—
	$5.8B	$5.7B	$5.6B	$5.2B	$5.2B	$4.3B	$2.2B	$2.0B	$1.8B	$1.5B	$1.3B	$1.2B
Gross Margin	15.4%	15.2%	15.4%	16.8%	18.3%	18.6%	17.0%	15.4%	15.0%	15.0%	15.0%	14.9%
	—	$3.9B	$3.8B	$3.3B	$3.0B	$2.5B	—	—	—	—	—	—
Depreciation	—	$262M	$246M	$196M	$163M	$127M	$121M	$114M	$75M	$58M	$49M	$42M
Total Operating Expenses	—	$4.1B	$4.0B	$3.5B	$3.2B	$2.6B	—	—	—	—	—	—
	$1.7B	$1.6B	$1.6B	$1.7B	$1.9B	$1.7B	$693M	$495M	$447M	$409M	$338M	$303M
EBIT	$1.7B	$1.6B	$1.6B	$1.7B	$1.9B	$1.7B	$693M	$495M	$447M	$409M	$338M	$303M
EBITDA	$1.9B	$1.9B	$1.8B	$1.9B	$2.1B	$1.8B	$876M	$623M	$531M	$479M	$382M	$343M
Operating Margin	4.5%	4.2%	4.3%	5.5%	6.9%	7.3%	5.3%	3.9%	3.8%	4.0%	3.9%	3.9%
EBITDA Margin	5.1%	4.9%	5.0%	6.1%	7.5%	7.9%	6.7%	4.9%	4.5%	4.7%	4.4%	4.4%
	—	—	—	—	—	—	$106M	$133M	$118M	$74M	$49M	$39M
	—	$1.1B	$1.1B	$1.4B	$1.7B	$1.5B	—	—	—	—	—	—
Income Tax Expense	—	$283M	$257M	$351M	$468M	$422M	$178M	$104M	$72M	$102M	$86M	$80M
	$911M	$826M	$822M	$1.0B	$1.3B	$1.1B	$470M	$272M	$266M	$245M	$197M	$183M
Net Margin	2.4%	2.2%	2.3%	3.3%	4.5%	4.7%	3.6%	2.1%	2.3%	2.4%	2.3%	2.3%
	$32.38	$32.38	$29.71	$36.36	$44.38	$36.81	$19.74	$11.70	$10.91	$9.78	$7.76	$6.96
Diluted EPS	$32.38	$32.32	$29.65	$36.29	$44.17	$36.54	$19.74	$11.70	$10.91	$9.78	$7.76	$6.96
Weighted Avg Basic	—	25M	27M	28M	28M	29M	—	—	—	—	—	—
Weighted Avg Diluted	—	25M	27M	28M	28M	29M	—	—	—	—	—	—

Line Item

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

$37.7B

$37.6B

$36.2B

$31.0B

$28.2B

$22.8B

$13.1B

$12.7B

$11.8B

$10.1B

$8.7B

$7.9B

—

$31.9B

$30.6B

$25.8B

$23.0B

$18.6B

—

$5.8B

$5.7B

$5.6B

$5.2B

$4.3B

$2.2B

$2.0B

$1.8B

$1.5B

$1.3B

$1.2B

Gross Margin

15.4%

15.2%

15.4%

16.8%

18.3%

18.6%

17.0%

15.4%

15.0%

14.9%

—

$3.9B

$3.8B

$3.3B

$3.0B

$2.5B

—

Depreciation

—

$262M

$246M

$196M

$163M

$127M

$121M

$114M

$75M

$58M

$49M

$42M

Total Operating Expenses

—

$4.1B

$4.0B

$3.5B

$3.2B

$2.6B

—

$1.7B

$1.6B

$1.7B

$1.9B

$1.7B

$693M

$495M

$447M

$409M

$338M

$303M

EBIT

$1.7B

$1.6B

$1.7B

$1.9B

$1.7B

$693M

$495M

$447M

$409M

$338M

$303M

EBITDA

$1.9B

$1.8B

$1.9B

$2.1B

$1.8B

$876M

$623M

$531M

$479M

$382M

$343M

Operating Margin

4.5%

4.2%

4.3%

5.5%

6.9%

7.3%

5.3%

3.9%

3.8%

4.0%

3.9%

EBITDA Margin

5.1%

4.9%

5.0%

6.1%

7.5%

7.9%

6.7%

4.9%

4.5%

4.7%

4.4%

—

$106M

$133M

$118M

$74M

$49M

$39M

—

$1.1B

$1.4B

$1.7B

$1.5B

—

Income Tax Expense

—

$283M

$257M

$351M

$468M

$422M

$178M

$104M

$72M

$102M

$86M

$80M

$911M

$826M

$822M

$1.0B

$1.3B

$1.1B

$470M

$272M

$266M

$245M

$197M

$183M

Net Margin

2.4%

2.2%

2.3%

3.3%

4.5%

4.7%

3.6%

2.1%

2.3%

2.4%

2.3%

$32.38

$29.71

$36.36

$44.38

$36.81

$19.74

$11.70

$10.91

$9.78

$7.76

$6.96

Diluted EPS

$32.38

$32.32

$29.65

$36.29

$44.17

$36.54

$19.74

$11.70

$10.91

$9.78

$7.76

$6.96

Weighted Avg Basic

—

25M

27M

28M

29M

—

Weighted Avg Diluted

—

25M

27M

28M

29M

—

LITHIA MOTORS INC (LAD) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does LITHIA MOTORS INC Do?

Lithia Motors, Inc. operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Luxury. It offers new and used vehicles; vehicle financing services; warranties, insurance contracts, and vehicle and theft protection services; and automotive repair and maintenance services, as well as sells vehicle body and parts under the Driveway and GreenCars brand names. As of February 18, 2022, the company operated through 278 stores. It also offers its products online through 300 websites. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon. LITHIA MOTORS INC (LAD) is classified as a mid-cap stock in the Consumer Discretionary sector, specifically within the Retail industry. The company is led by CEO Bryan B. DeBoer and employs approximately 21,900 people, headquartered in Medford, Oregon. With a market capitalization of $5.8B, LAD is one of the notable companies in the Consumer Discretionary sector.

LITHIA MOTORS INC (LAD) Stock Rating — Hold (April 2026)

As of April 2026, LITHIA MOTORS INC receives a Hold rating with a composite score of 44.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.LAD ranks #1,765 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, LITHIA MOTORS INC ranks #154 of 442 stocks, placing it in the upper half of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

LAD Stock Price and 52-Week Range

LITHIA MOTORS INC (LAD) currently trades at $266.54. The 52-week high for LAD is $360.56, which means the stock is currently trading -26.1% from its annual peak. The 52-week low is $249.01, putting the stock 7.0% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.

Is LAD Overvalued or Undervalued? — Valuation Analysis

LITHIA MOTORS INC (LAD) carries a value factor score of 80/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 6.69x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 73%. The price-to-book ratio stands at 0.92x, versus the sector average of 1.99x. The price-to-sales ratio is 0.16x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, LAD trades at 3.15x EV/EBITDA, versus 4.91x for the sector.

Based on these multiples, LITHIA MOTORS INC appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.

LITHIA MOTORS INC Profitability — ROE, Margins, and Quality Score

LITHIA MOTORS INC (LAD) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 13.7%, compared to the Consumer Discretionary sector average of 6.2%, which is within a healthy range. Return on assets (ROA) comes in at 3.6% versus the sector average of 2.5%.

On a margin basis, LITHIA MOTORS INC reports gross margins of 15.4%, compared to 36.9% for the sector. The operating margin is 4.5% (sector: 3.8%). Net profit margin stands at 2.4%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 4.8% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

LAD Debt, Balance Sheet, and Financial Health

LITHIA MOTORS INC has a debt-to-equity ratio of 279.0%, compared to the Consumer Discretionary sector average of 89.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.17x, suggesting adequate working capital coverage. Total debt on the balance sheet is $14.14B. Cash and equivalents stand at $417M.

LAD has a beta of 1.05, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for LITHIA MOTORS INC is 65/100, reflecting average volatility within the normal range for its sector.

LITHIA MOTORS INC Revenue and Earnings History — Quarterly Trend

In TTM 2026, LITHIA MOTORS INC reported revenue of $37.66B and earnings per share (EPS) of $32.38. Net income for the quarter was $911M. Gross margin was 15.4%. Operating income came in at $1.68B.

In FY 2025, LITHIA MOTORS INC reported revenue of $37.63B and earnings per share (EPS) of $32.38. Net income for the quarter was $826M. Gross margin was 15.2%. Revenue grew 4.0% year-over-year compared to FY 2024. Operating income came in at $1.59B.

In Q3 2025, LITHIA MOTORS INC reported revenue of $9.68B and earnings per share (EPS) of $8.63. Net income for the quarter was $219M. Gross margin was 15.2%. Revenue grew 4.9% year-over-year compared to Q3 2024. Operating income came in at $422M.

In Q2 2025, LITHIA MOTORS INC reported revenue of $9.58B and earnings per share (EPS) of $9.89. Net income for the quarter was $258M. Gross margin was 15.5%. Revenue grew 3.8% year-over-year compared to Q2 2024. Operating income came in at $425M.

Over the past 8 quarters, LITHIA MOTORS INC has demonstrated a growth trajectory, with revenue expanding from $9.23B to $37.66B. Investors analyzing LAD stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

LAD Dividend Yield and Income Analysis

LITHIA MOTORS INC (LAD) currently pays a dividend yield of 0.7%. At this yield, a $10,000 investment in LAD stock would generate approximately $$68.00 in annual dividend income.

LAD Momentum and Technical Analysis Profile

LITHIA MOTORS INC (LAD) has a momentum factor score of 28/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 8/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

LAD vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison

Within the Consumer Discretionary sector, LITHIA MOTORS INC (LAD) ranks #154 out of 442 stocks based on the Blank Capital composite score. This places LAD in the upper half of all Consumer Discretionary stocks in our coverage universe. Key competitors and sector peers include MONARCH CASINO & RESORT INC (MCRI) with a score of 50.5/100, CASEYS GENERAL STORES INC (CASY) with a score of 57.3/100, INGLES MARKETS INC (IMKTA) with a score of 51.0/100, FIVE BELOW, INC (FIVE) with a score of 51.6/100, and TARGET CORP (TGT) with a score of 52.6/100.

Comparing LAD against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LAD vs S&P 500 (SPY) comparison to assess how LITHIA MOTORS INC stacks up against the broader market across all factor dimensions.

LAD Next Earnings Date

No upcoming earnings date has been announced for LITHIA MOTORS INC (LAD) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy LAD? — Investment Thesis Summary

LITHIA MOTORS INC presents a balanced picture with arguments on both sides. The value score of 80/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 28/100, a headwind for near-term performance. Low volatility (stability score 65/100) reduces downside risk.

In summary, LITHIA MOTORS INC (LAD) earns a Hold rating with a composite score of 44.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LAD stock.

Related Resources for LAD Investors

Explore more research and tools: LAD vs S&P 500 comparison, top Consumer Discretionary stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare LAD head-to-head with peers: LAD vs MCRI, LAD vs CASY, LAD vs IMKTA.

Business quality

Valuation edge

Market alpha

Unlock Investment Thesis

Unlock Performance & Technicals

Unlock Valuation Tools

Institutional peer matrix

Dispersion: efficiency vs. valuation

Lateral intelligence network

Unlock Financial Statements

Unlock Ownership & Management

Intelligence Feed

Q4 Earnings Highlights: America's Car-Mart (NASDAQ:CRMT) Vs The Rest Of The Vehicle Retailer Stocks

Should Lithia Motors’ Shift From Buybacks to Debt Reduction Require Action From LAD Investors?

Used car prices rise to highest point since summer 2023

Lithia & Driveway (LAD) Schedules Release of First Quarter 2026 Results

Citigroup Maintains Buy on Lithia Motors, Lowers Price Target to $326

Unlock Earnings Transcripts

Institutional Intelligence FAQ

Related Research & Tools

Related Consumer Discretionary Stocks

LITHIA MOTORS INC (LAD) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does LITHIA MOTORS INC Do?

LITHIA MOTORS INC (LAD) Stock Rating — Hold (April 2026)

LAD Stock Price and 52-Week Range

Is LAD Overvalued or Undervalued? — Valuation Analysis

LITHIA MOTORS INC Profitability — ROE, Margins, and Quality Score

LAD Debt, Balance Sheet, and Financial Health

LITHIA MOTORS INC Revenue and Earnings History — Quarterly Trend

LAD Dividend Yield and Income Analysis

LAD Momentum and Technical Analysis Profile

LAD vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison

LAD Next Earnings Date

Should You Buy LAD? — Investment Thesis Summary

Related Resources for LAD Investors

Comments

Institutional Benchmarks

Get alerted on rating changes

Intelligence Feed

Q4 Earnings Highlights: America's Car-Mart (NASDAQ:CRMT) Vs The Rest Of The Vehicle Retailer Stocks

Should Lithia Motors’ Shift From Buybacks to Debt Reduction Require Action From LAD Investors?

Used car prices rise to highest point since summer 2023

Lithia & Driveway (LAD) Schedules Release of First Quarter 2026 Results

Citigroup Maintains Buy on Lithia Motors, Lowers Price Target to $326