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Lithia Motors Inc (LAD)
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Upturn Advisory Summary
12/09/2025: LAD (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
16 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $394.13
1 Year Target Price $394.13
| 10 | Strong Buy |
| 3 | Buy |
| 3 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -8.36% | Avg. Invested days 30 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 12/09/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 7.89B USD | Price to earnings Ratio 9.4 | 1Y Target Price 394.13 |
Price to earnings Ratio 9.4 | 1Y Target Price 394.13 | ||
Volume (30-day avg) 16 | Beta 1.18 | 52 Weeks Range 260.64 - 402.20 | Updated Date 12/9/2025 |
52 Weeks Range 260.64 - 402.20 | Updated Date 12/9/2025 | ||
Dividends yield (FY) 0.66% | Basic EPS (TTM) 34.61 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 2.4% | Operating Margin (TTM) 4.52% |
Management Effectiveness
Return on Assets (TTM) 4.42% | Return on Equity (TTM) 13.52% |
Valuation
Trailing PE 9.4 | Forward PE 8.14 | Enterprise Value 22191437256 | Price to Sales(TTM) 0.21 |
Enterprise Value 22191437256 | Price to Sales(TTM) 0.21 | ||
Enterprise Value to Revenue 0.59 | Enterprise Value to EBITDA 9.36 | Shares Outstanding 24250030 | Shares Floating 21397014 |
Shares Outstanding 24250030 | Shares Floating 21397014 | ||
Percent Insiders 1.31 | Percent Institutions 104.87 |
Upturn AI SWOT
Lithia Motors Inc
Company Overview
History and Background
Lithia Motors Inc. was founded in 1938 by Sid Lithia and originally operated as a single Ford dealership in Medford, Oregon. It went public in 1996. The company has grown significantly through a strategy of acquiring dealerships across the United States, Canada, and the United Kingdom. Key milestones include expanding its geographical footprint, diversifying its brand offerings, and investing in digital retail solutions. Lithia has evolved from a regional dealer to one of the largest automotive retailers in the U.S.
Core Business Areas
- Dealership Operations: This is Lithia's primary business, involving the sale of new and used vehicles, vehicle maintenance and repair services, and the sale of original and aftermarket parts. They operate dealerships for a wide range of automotive brands.
- Finance and Insurance (F&I) Services: Lithia offers F&I products, including financing, extended service contracts, and insurance, to customers at the point of sale, generating significant ancillary revenue.
- Digital Retail Solutions: The company is investing in and developing digital platforms to enhance the online car buying experience, including home delivery and online financing options, to complement their physical dealerships.
Leadership and Structure
Lithia Motors Inc. is led by its executive management team, including the CEO and President. The company operates a decentralized model with individual dealership general managers responsible for their operations, overseen by regional managers. This structure allows for local market responsiveness while maintaining corporate oversight.
Top Products and Market Share
Key Offerings
- New Vehicle Sales: Lithia sells new vehicles from a wide array of manufacturers, including Ford, Toyota, Honda, Chevrolet, BMW, Mercedes-Benz, and many others. Market share in individual vehicle segments varies greatly by brand and region. Major competitors include other large automotive dealer groups (e.g., AutoNation, Carvana) and independent dealerships.
- Used Vehicle Sales: The company sells a significant volume of used vehicles, acquired through trade-ins, auctions, and direct purchases. This segment is a crucial profit driver. Competitors include other large dealer groups and online used car retailers like Carvana and Vroom.
- Service and Parts: This includes routine maintenance, repairs, and body shop services, as well as the sale of OEM and aftermarket parts. This segment often boasts higher profit margins than vehicle sales. Competitors range from manufacturer-specific dealerships to independent repair shops and national service chains.
Market Dynamics
Industry Overview
The automotive retail industry is highly fragmented and competitive, driven by vehicle affordability, consumer preferences, technological advancements (EVs, autonomous driving), and economic conditions. The shift towards online purchasing and a growing emphasis on used car sales are significant trends.
Positioning
Lithia Motors Inc. is positioned as one of the largest and most diversified automotive retailers in the U.S. Its competitive advantages include its scale, broad brand representation, strong F&I operations, strategic acquisitions, and increasing investment in digital capabilities. Its decentralized management structure allows for adaptation to local market conditions.
Total Addressable Market (TAM)
The Total Addressable Market for automotive retail in the U.S. is in the hundreds of billions of dollars annually, encompassing new and used vehicle sales, parts, and service. Lithia, as a leading player, captures a significant but still relatively small percentage of this vast market, indicating substantial room for continued growth through market share gains and expansion.
Upturn SWOT Analysis
Strengths
- Extensive network of dealerships across diverse geographic locations.
- Strong brand portfolio with representation from numerous major automakers.
- Profitable Finance and Insurance (F&I) segment.
- Proven track record of successful strategic acquisitions.
- Increasing investment in digital retail and e-commerce capabilities.
Weaknesses
- Reliance on manufacturer franchise agreements, which can be subject to termination.
- Vulnerability to economic downturns affecting consumer discretionary spending.
- Integration challenges and costs associated with rapid acquisitions.
- Potential for inventory management issues due to fluctuating market demand and supply chain disruptions.
Opportunities
- Continued consolidation in the fragmented auto retail market.
- Expansion into new geographic regions and international markets.
- Growing demand for electric vehicles (EVs) and related services.
- Leveraging data analytics to enhance customer experience and operational efficiency.
- Further development of omni-channel retail strategies.
Threats
- Increasing competition from online-only retailers (e.g., Carvana).
- Potential for disintermediation by automakers selling directly to consumers.
- Economic recessions and rising interest rates impacting vehicle affordability.
- Supply chain disruptions affecting vehicle availability and pricing.
- Changing consumer preferences and regulatory environments (e.g., emissions standards).
Competitors and Market Share
Key Competitors
- AutoNation, Inc. (AN)
- Group 1 Automotive, Inc. (GPI)
- Carvana Co. (CVNA)
- Sonic Automotive, Inc. (SAH)
Competitive Landscape
Lithia's advantages lie in its scale, diversified brand representation, and strong F&I operations. Its aggressive acquisition approach allows it to expand rapidly. Competitors like AutoNation and Group 1 also have significant scale. Carvana poses a threat with its online-first model, but Lithia is actively developing its own digital capabilities to counter this.
Major Acquisitions
Driveway
- Year: 2020
- Acquisition Price (USD millions): 600
- Strategic Rationale: Acquired to accelerate its digital retail strategy and enhance its online car buying and selling platform, aiming to provide a seamless omni-channel customer experience.
DCH Auto Group
- Year: 2014
- Acquisition Price (USD millions): 380
- Strategic Rationale: This acquisition significantly expanded Lithia's presence in the Northeast U.S. and added a substantial number of dealerships and brands to its portfolio.
Growth Trajectory and Initiatives
Historical Growth: Lithia has demonstrated impressive historical growth, primarily fueled by its aggressive acquisition strategy. This has led to significant expansion in revenue and dealership footprint over the past decade.
Future Projections: Analyst projections indicate continued revenue growth, with a focus on organic growth initiatives alongside opportunistic acquisitions. Expectations are for sustained profitability and potential market share gains in a consolidating industry.
Recent Initiatives: Recent initiatives include the ongoing integration of acquired dealerships, expansion of its 'Driveway' digital platform, and investments in service centers and remarketing capabilities. The company is also actively preparing for and capitalizing on the shift towards electric vehicles.
Summary
Lithia Motors Inc. is a robust automotive retailer with a strong track record of growth, primarily driven by strategic acquisitions and its effective F&I operations. The company is well-positioned to capitalize on industry consolidation and the ongoing digital transformation of car sales. However, it must navigate potential economic headwinds and evolving consumer preferences in the face of increasing online competition.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Lithia Motors Inc. Investor Relations (SEC Filings, Annual Reports)
- Financial Data Providers (e.g., Refinitiv, Bloomberg - used for market data compilation)
- Industry Analysis Reports
Disclaimers:
This JSON output is generated based on publicly available information and is intended for informational purposes only. It does not constitute financial advice. Market share data is an estimation based on available reports and may not be exact. All financial figures are approximations based on reported data. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Lithia Motors Inc
Exchange NYSE | Headquaters Medford, OR, United States | ||
IPO Launch date 1996-12-18 | CEO, President & Director Mr. Bryan B. DeBoer | ||
Sector Consumer Cyclical | Industry Auto & Truck Dealerships | Full time employees 30000 | Website https://www.lithia.com |
Full time employees 30000 | Website https://www.lithia.com | ||
Lithia Motors, Inc. operates as an automotive retailer in the United States, the United Kingdom, and Canada. The company operates in two segments, Vehicle Operations and Financing Operations. It offers a range of products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, financing and insurance products, and aftersales automotive repair and maintenance services. The company provides its products and services through a network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.
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