Lithia Motors (LAD)
NYSEConsumer DiscretionaryAuto - DealershipsSnapshot 2026-09-04
$386.81+2.07%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionaryAuto - DealershipsSnapshot 2026-09-04
QuarterlyIQ Insights · LAD
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within consumer discretionary on a research-validated quality screen. As of 2026-09-04.
The screen ranks LAD against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 45% of the time over the next year (vs 59% for the rest of the cohort, n=6943).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on growing total revenues through new and used vehicle sales, aftersales, and finance operations.
Stated as a priority in 5 of last 5 quarters. Revenue grew from $9.2B in 2026-Q1 to $9.8B in 2026-Q2 (+2%), with full year 2025 revenue up 4.0% to $37.63B from 2024. Management consistently emphasized revenue growth and delivered moderate growth in recent quarters, indicating progress on this priority.
“Record second quarter revenues of $9.8 billion and 2% increase from prior year.”
“Record first quarter revenues of $9.3 billion, 1% increase from prior year.”
“Record full year revenues of $37.63 billion, a 4.0% increase.”
“Third quarter 2025 revenue increased 5% to $9.7 billion from $9.2 billion in 2024.”
“For the first nine months of 2025 revenues increased 5% to $28.4 billion.”
Sustain and improve diluted earnings per share through operational efficiency and profitable growth.
Maintained as a priority in 5 of last 5 quarters. Diluted EPS rose 17% in 2026-Q2 to $11.54 from $9.87 in 2025-Q2, and full year 2025 EPS increased 10% to $32.32 from 2024. Despite a Q1 2026 EPS decline, the overall trajectory shows delivering EPS growth consistent with management's stated priority.
“Second quarter diluted EPS of $11.54, a 17% increase from prior year.”
Regularly update and increase quarterly dividends to return value to shareholders.
Announced dividend updates in 5 of last 5 quarters, with dividends rising from $0.55 per share in 2025-Q2 to $0.70 in 2026-Q2, a 27% increase. Management consistently returned value to shareholders through dividend increases, delivering on this capital allocation priority.
“Announced a 23% increase to quarterly dividend to $0.70 per share.”
Continue repurchasing shares opportunistically to return capital and enhance shareholder value.
Share repurchase program execution stated in 5 of last 5 quarters. Repurchases totaled $242M in 2026-Q2 (3.7% of shares), continuing a pattern of opportunistic buybacks. Management has consistently repurchased shares, delivering on this capital allocation priority.
“Repurchased $242 million of shares, 3.7% of outstanding shares in the quarter.”
Over the trailing year it converted 0.31x of net income into operating cash flow. Historically, Consumer Discretionary names rated fragile grew net income 40% of the time over the next year (vs 53% for the rest of the cohort, n=3652).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
17 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Consumer Discretionary names rated neutral grew net income 48% of the time over the next year (vs 53% for the rest of the cohort, n=2538).
Not investment advice. As of 2026-09-04.
“First quarter diluted EPS of $4.28, a 46% decrease from prior year.”
“Full year 2025 diluted EPS was $32.32, a 10% increase from 2024.”
“Third quarter 2025 diluted EPS was $8.61, an 11% increase from 2024.”
“Diluted EPS for first nine months of 2025 was $26.42, a 23% increase from 2024.”
“Announced dividend of $0.57 per share related to first quarter 2026.”
“Announced dividend of $0.55 per share related to fourth quarter 2025.”
“Announced dividend of $0.55 per share related to third quarter 2025.”
“Announced dividend of $0.55 per share related to second quarter 2025.”
“Repurchased $259 million of shares, representing 4.0% of outstanding shares.”
“Repurchased approximately 917,427 shares at weighted average price of $314.”
“Repurchased approximately 1,312,000 shares at weighted average price of $312.”
“Repurchased approximately 2,168,000 shares year-to-date at weighted average price of $313.”