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LAD

LAD

Consumer Cyclical · Auto & Truck Dealerships

$309.39+0.28%
Mkt Cap: $7.06BDY: 0.74%

Performance

LAD (LAD) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

LAD (LAD) operates in the Auto & Truck Dealerships space within the Consumer Cyclical sector. With a market cap of $7.1B, it qualifies as a small-cap company. Growth is moderate and the business remains profitable, offering a balanced risk/reward profile compared to high-multiple peers.

Bull Case2
  • Low P/E of 10.8× suggests the stock may be undervalued relative to earnings
  • Forward P/E (7.6×) is lower than trailing P/E (10.8×) — analysts expect earnings to improve
Bear Case4
  • Earnings fell 46% YoY — profitability is under pressure
  • Thin profit margin of 1.9% — little buffer against cost increases
  • High debt-to-equity of 251.65× increases financial risk, especially with elevated interest rates
  • Current ratio below 1 (0.99×) — short-term liabilities exceed current assets

Verdict

Avoid

Significant fundamental concerns outweigh positives. High risk at current levels.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

Related Articles

Revenue & Results

Dividends

Current DY

0.74%

5Y Avg Annual

$1.7840

Last Payment

$0.5700

Ex-Date

05/08/2026

Annual dividends paid per share

2011
2019
2026
Ex-DatePaymentAmountEst. DY
Latest05/08/2026
05/22/2026$0.57000.74%
03/06/2026
03/20/2026$0.55000.71%
11/07/2025
11/21/2025$0.55000.71%
08/08/2025
08/22/2025$0.55000.71%
05/09/2025
05/23/2025$0.55000.71%
03/07/2025
03/21/2025$0.53000.69%
11/08/2024
11/22/2024$0.53000.69%
08/09/2024
08/23/2024$0.53000.69%

Magic Number

Shares needed to self-fund your next purchase

$309.39

Price

÷

$0.5700

Last div. (quarterly)

=

543

shares

Own 543 LAD shares ($167,998.77) and each quarterly dividend pays for 1 new share — the snowball runs on its own.

Investment target

$167,998.77

New shares / year

+4 shares

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Jul 29, 2026

43

days

EPS (TTM)

$28.66

P/E (TTM)

10.8

Fwd P/E

7.6

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$7.06B
P/E Ratio10.80
Forward P/E7.58
P/B Ratio
PEG Ratio0.70
EPS (TTM)$28.66

Trading

Open
Day High
Day Low
52W High$360.56
52W Low$239.78
Volume
Avg Volume (3M)312,492
Beta1.26

Dividends

Dividend Yield0.74%
Annual Rate$2.28
Ex-Div Date2026-05-08
Payout Ratio7.68%

Profitability

Profit Margin1.88%
Operating Margin3.63%
ROE10.87%
ROA3.96%
Revenue Growth1.00%
Earnings Growth-46.10%

Balance Sheet

Total Revenue$37.73B
Total Debt$16.13B
Debt / Equity251.65
Current Ratio0.99
Free Cash Flow$500.36M

Fair Value Estimates

Current price: $309.39

Graham Number

√(22.5 × EPS × Book Value)

$424.93

+37.3% upside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

$30.53

-90.1% downside

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

7/10

70% score

Pays dividends

15Y hist.

15+ years of dividend history

Dividend consistency (5Y+)

15 yrs

Uninterrupted dividend payments for at least 5 years

ROE above 10%

10.9%

Return on equity — measures how efficiently capital is used

Positive profit margin

1.9%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

+1.0%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

-46.1%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

251.65×

Low financial leverage reduces risk of distress

Current ratio above 1

0.99×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$97M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

0.74%

Stock must distribute income to shareholders

Related Assets

Consumer Cyclical

About LAD

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.

Sector

Consumer Cyclical

Industry

Auto & Truck Dealerships

Location

Medford, United States

Employees

30,000