Is the business good?
How good a business is LAD?
Lithia Motors, Inc. earns 19% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
19%
Return on invested capital · cost of capital 9.0% · 10 points above what the capital costs: growth creates value
- Operating margin
- 4.0%
Operating margin · Auto & Truck Dealerships median 5.3% · 12 months to Q1 2026
- Cash conversion
- −0.64×
Cash conversion · 0.14× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −11%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 5.3% |
| FY2021 | 7.3% |
| FY2022 | 6.9% |
| FY2023 | 5.5% |
| FY2024 | 4.3% |
| FY2025 | 4.2% |
Details›
- Gross margin12 months to Q1 2026
- 15%
- Operating margin12 months to Q1 2026
- 4.0%
- Net margin12 months to Q1 2026
- 1.9%
- Free cash flow margin
- −1.2%
- Revenue, trailing twelve months
- $37.7B
- Free cash flow, trailing twelve months
- −$453M
- Net income, trailing twelve months
- $711M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 19%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Auto & Truck Dealerships
Ranks #13 of 15 by Smart Score