LADLithia Motors, Inc.
Is the business good?
More warning than reassurance: 3 of 9 health tests passed, profits without cash flow, and margins compressing.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Reports an operating profit but operating cash flow is negative, a red flag. Conversion is worsening vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 12% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
Return on invested capital · cost of capital 9.0% · 10 points above what the capital costs: growth creates value
- Operating margin
- 4.1%
Operating margin · Auto & Truck Dealerships median 5.1% · 12 months to Q2 2026
- Cash conversion
- −0.13×
Cash conversion · 0.49× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- −13%
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 Q2 2026
- 15%
- Operating margin12 months to Q2 2026
- 4.1%
- Net margin12 months to Q2 2026
- 1.9%
- Free cash flow margin
- −1.3%
- Revenue, trailing twelve months
- $37.9B
- Free cash flow, trailing twelve months
- −$504M
- Net income, trailing twelve months
- $714M
- 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 is operating cash flow over operating profit after tax.
Auto & Truck Dealerships
Ranks #10 of 13 by RyuScore