Lithia Motors Inc (LAD) Stock Analysis
Verdict: WATCH (do not buy)
Low P/E (11.2x) reflects revenue scale from M&A, but high debt (D/E 2.58x) and near-zero FCF ($5.8M) constrain multi-year valuation re-rating.
Investment score: 52/100
Analysis as of
Is Lithia Motors Inc stock worth reviewing? The TradeMates thesis
The TradeMates model evaluates Lithia Motors as a HOLD at $340.71. Low TTM P/E of 11.24x and strong 2025 revenue ($37.63B) are countered by high leverage (D/E 2.58x) and constrained FCF ($5.8M).
7-factor investment score
- Valuation: 65/100 (weight 20%)
- Financial Health: 40/100 (weight 15%)
- Technical Momentum: 50/100 (weight 15%)
- Earnings Quality: 55/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 48/100 (weight 15%)
Lithia Motors Inc opportunities and risks
What speaks for LAD
- Aggressive consolidation and M&A scale expanding revenue base to $37.63B in 2025
What speaks against LAD
- Elevated leverage with $14.69B total debt and 2.58x Debt/Equity ratio
Frequently asked questions about Lithia Motors Inc (LAD)
Is LAD stock a good investment?
The TradeMates model rates Lithia Motors Inc as WATCH (do not buy) with an investment score of 52/100. The TradeMates model evaluates Lithia Motors as a HOLD at $340.71. Low TTM P/E of 11.24x and strong 2025 revenue ($37.63B) are countered by high leverage (D/E 2.58x) and constrained FCF ($5.8M). This is algorithmic model output, not personal investment advice.
Is LAD stock a buy?
The TradeMates model verdict for LAD is WATCH (do not buy) with an investment score of 52/100. Treat this as a model signal to review, not a personal buy recommendation.