Recent News
On November 11, 2025 Lithia announced acquisitions of Porsche Beverly Hills and Audi Santa Monica, adding roughly $450 million of expected annualized revenue and expanding its luxury mix. On October 14, 2025 Lithia added Stivers Decatur Subaru in Atlanta, contributing about $100 million of expected annualized revenue and increasing Southeast density.
Technical Analysis
Directional indicators (ADX/DI+/DI-): ADX at 20.96 indicates an emerging trend; DI+ increasing while DI- decreasing signals a bullish directional bias that supports near-term upside relative to the current valuation.
MACD: MACD at 9.63 and rising, above the signal line at 6.94, represents a bullish momentum crossover that reinforces the positive price bias implied by the directional indicators.
MRO (Momentum/Regression Oscillator): MRO at 20.91 sits positive, indicating price trading above the model target and implying elevated downside potential if momentum normalizes; that potential tempers the bullish signals from MACD and DI+.
RSI: RSI at 54.61 and rising shows mild bullish momentum without overbought conditions, aligning with a constructive but not extended short-term setup.
Price Versus Moving Averages & Ichimoku: Closing price $344.09 trades above the 12‑day EMA ($336.95), 26‑day EMA ($326.15), 20‑day average ($334.36) and 200‑day average ($313.17); Tenkan at $335.35 sits below price, reinforcing the short-term bullish posture relative to the longer-term average.
Bollinger Bands & SuperTrend: Price sits near the upper 1x Bollinger band ($349.04) with the SuperTrend lower support at $331.90, signaling proximity to short-term resistance while leaving a defined technical support beneath current levels.
Volume & Volatility: Daily volume (232,341) runs below the 10‑day (281,540) and 50/200‑day averages (~313k), suggesting limited participation behind the recent move; 42‑day beta 1.28 signals above‑average short-term volatility versus the broader market.
Fundamental Analysis
Profitability & Margins: EBIT of $473.8M yields an EBIT margin of 4.94%, up 8.52% year-over-year but down 3.87% quarter-over-quarter; that margin sits below the industry peer mean of 13.17% and below the industry peer median of 14.80%, indicating constrained operating leverage versus peers.
Earnings and Guidance Signals: Reported EPS $9.50 exceeded the estimate $8.61 by $0.89, an EPS surprise of 10.34%, while forward EPS sits at $8.79 and forward PE near 36.31; the EPS beat supports the near-term sentiment reflected in technical momentum but does not fully reconcile with valuation metrics.
Growth Metrics: Earnings growth registers at 33.68% year-over-year, above the industry peer mean of 15.71% and the peer median of 25.81%, while revenue growth shows ambiguity—reported revenue growth at 4.41% versus revenue growth year-over-year of -43.66%—underscoring mixed top-line dynamics across periods.
Cash Flow & Liquidity: Free cash flow totaled -$70.8M with free cash flow yield at -0.86% and operating cash flow of $9.3M; free cash flow trends show quarter-over-quarter and year-over-year deterioration, raising liquidity sensitivity despite $404.4M in cash and short-term investments.
Leverage & Coverage: Total debt $14.30B and net debt $13.29B exceed market capitalization ($8.24B), producing debt-to-equity of 2.05x and debt-to-EBITDA of 24.75x; interest coverage of 3.89x provides a cushion but elevated leverage materially increases capital-structure risk relative to the earnings profile.
Returns: Return on equity stands at 3.67%—above the industry peer mean of 2.16% but below the peer median of 4.47%—while return on assets at 1.08% stays below the industry peer mean of 2.81%, indicating modest asset efficiency given current scale.
Valuation Conclusion: WMDST values the stock as over-valued, reflecting the combination of elevated multiples (PE ~31.63; forward PE ~36.31), negative free cash flow yield, and significant leverage that outweigh the EPS beat and strong earnings growth.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-10-22 |
| NEXT REPORT DATE: | 2026-01-21 |
| CASH FLOW | Begin Period Cash Flow | $ 478.1 M |
| Operating Cash Flow | $ 9.3 M | |
| Capital Expenditures | $ -80.10 M | |
| Change In Working Capital | $ -368.70 M | |
| Dividends Paid | $ -14.30 M | |
| Cash Flow Delta | $ -22.50 M | |
| End Period Cash Flow | $ 455.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 9.6 B | |
| Forward Revenue | $ 2.1 B | |
| COSTS | ||
| Cost Of Revenue | $ 8.1 B | |
| Depreciation | $ 104.0 M | |
| Depreciation and Amortization | $ 104.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 9.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.5 B | |
| EBITDA | $ 577.8 M | |
| EBIT | $ 473.8 M | |
| Operating Income | $ 405.2 M | |
| Interest Income | $ 20.1 M | |
| Interest Expense | $ 121.7 M | |
| Net Interest Income | $ -101.60 M | |
| Income Before Tax | $ 352.1 M | |
| Tax Provision | $ 93.9 M | |
| Tax Rate | 26.669 % | |
| Net Income | $ 256.1 M | |
| Net Income From Continuing Operations | $ 258.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 8.61 | |
| EPS Actual | $ 9.50 | |
| EPS Difference | $ 0.89 | |
| EPS Surprise | 10.337 % | |
| Forward EPS | $ 8.79 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 24.2 B | |
| Intangible Assets | $ 5.2 B | |
| Net Tangible Assets | $ 1.7 B | |
| Total Current Assets | $ 7.9 B | |
| Cash and Short-Term Investments | $ 404.4 M | |
| Cash | $ 404.4 M | |
| Net Receivables | $ 158.1 M | |
| Inventory | $ 6.1 B | |
| Long-Term Investments | $ 1.3 B | |
| LIABILITIES | ||
| Accounts Payable | $ 371.4 M | |
| Short-Term Debt | $ 5.0 B | |
| Total Current Liabilities | $ 6.5 B | |
| Net Debt | $ 13.3 B | |
| Total Debt | $ 14.3 B | |
| Total Liabilities | $ 17.1 B | |
| EQUITY | ||
| Total Equity | $ 7.0 B | |
| Retained Earnings | $ 6.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 268.40 | |
| Shares Outstanding | 25.700 M | |
| Revenue Per-Share | $ 368.14 | |
| VALUATION | Market Capitalization | $ 8.2 B |
| Enterprise Value | $ 22.1 B | |
| Enterprise Multiple | 38.315 | |
| Enterprise Multiple QoQ | 0.762 % | |
| Enterprise Multiple YoY | 74.563 % | |
| Enterprise Multiple IPRWA | high: 193.836 mean: 59.879 median: 54.088 LAD: 38.315 low: -60.697 |
|
| EV/R | 2.31 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.458 | |
| Asset To Liability | 1.409 | |
| Debt To Capital | 0.672 | |
| Debt To Assets | 0.592 | |
| Debt To Assets QoQ | -0.034 % | |
| Debt To Assets YoY | 152.382 % | |
| Debt To Assets IPRWA | high: 1.021 LAD: 0.592 median: 0.525 mean: 0.494 low: 0.116 |
|
| Debt To Equity | 2.047 | |
| Debt To Equity QoQ | -0.502 % | |
| Debt To Equity YoY | 139.511 % | |
| Debt To Equity IPRWA | high: 5.017 LAD: 2.047 median: 0.941 mean: 0.464 low: -3.433 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.18 | |
| Price To Book QoQ | -3.784 % | |
| Price To Book YoY | 8.008 % | |
| Price To Book IPRWA | high: 9.42 mean: 3.709 median: 2.613 LAD: 1.18 low: -4.629 |
|
| Price To Earnings (P/E) | 31.631 | |
| Price To Earnings QoQ | -23.181 % | |
| Price To Earnings YoY | -4.089 % | |
| Price To Earnings IPRWA | high: 244.435 median: 82.476 mean: 77.565 LAD: 31.631 low: -147.847 |
|
| PE/G Ratio | 0.939 | |
| Price To Sales (P/S) | 0.86 | |
| Price To Sales QoQ | -4.728 % | |
| Price To Sales YoY | 14.158 % | |
| Price To Sales IPRWA | high: 16.979 mean: 7.27 median: 6.123 LAD: 0.86 low: 0.164 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 36.307 | |
| Forward PE/G | 1.078 | |
| Forward P/S | 3.851 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.086 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.402 | |
| Asset Turnover Ratio QoQ | 2.145 % | |
| Asset Turnover Ratio YoY | -1.111 % | |
| Asset Turnover Ratio IPRWA | high: 0.676 LAD: 0.402 mean: 0.316 median: 0.291 low: 0.086 |
|
| Receivables Turnover | 60.289 | |
| Receivables Turnover Ratio QoQ | 7.168 % | |
| Receivables Turnover Ratio YoY | 23.821 % | |
| Receivables Turnover Ratio IPRWA | high: 93.227 LAD: 60.289 mean: 12.763 median: 8.425 low: 0.318 |
|
| Inventory Turnover | 1.371 | |
| Inventory Turnover Ratio QoQ | 2.923 % | |
| Inventory Turnover Ratio YoY | 6.295 % | |
| Inventory Turnover Ratio IPRWA | high: 3.491 LAD: 1.371 mean: 0.77 median: 0.723 low: 0.204 |
|
| Days Sales Outstanding (DSO) | 1.514 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 66.611 | |
| Cash Conversion Cycle Days QoQ | 1.268 % | |
| Cash Conversion Cycle Days YoY | -9.775 % | |
| Cash Conversion Cycle Days IPRWA | high: 200.951 LAD: 66.611 median: 11.907 mean: 8.479 low: -94.879 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 6.709 | |
| CapEx To Revenue | -0.008 | |
| CapEx To Depreciation | -0.77 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 15.7 B | |
| Net Invested Capital | $ 20.7 B | |
| Invested Capital | $ 20.7 B | |
| Net Tangible Assets | $ 1.7 B | |
| Net Working Capital | $ 1.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.062 | |
| Current Ratio | 1.219 | |
| Current Ratio QoQ | 3.422 % | |
| Current Ratio YoY | 2.44 % | |
| Current Ratio IPRWA | high: 3.829 LAD: 1.219 mean: 1.207 median: 1.023 low: 0.15 |
|
| Quick Ratio | 0.289 | |
| Quick Ratio QoQ | -6.921 % | |
| Quick Ratio YoY | -4.091 % | |
| Quick Ratio IPRWA | high: 2.234 mean: 0.406 LAD: 0.289 median: 0.207 low: 0.074 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 24.749 | |
| Cost Of Debt | 0.633 % | |
| Interest Coverage Ratio | 3.893 | |
| Interest Coverage Ratio QoQ | 54.655 % | |
| Interest Coverage Ratio YoY | 27.551 % | |
| Interest Coverage Ratio IPRWA | high: 76.11 mean: 14.809 median: 7.924 LAD: 3.893 low: -23.158 |
|
| Operating Cash Flow Ratio | 0.01 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 4.274 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 17.909 | |
| Dividend Payout Ratio | 0.056 | |
| Dividend Rate | $ 0.55 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.899 % | |
| Revenue Growth | 4.409 % | |
| Revenue Growth QoQ | 8378.846 % | |
| Revenue Growth YoY | -43.655 % | |
| Revenue Growth IPRWA | high: 50.0 % median: 9.382 % LAD: 4.409 % mean: -0.261 % low: -57.432 % |
|
| Earnings Growth | 33.681 % | |
| Earnings Growth QoQ | -2118.035 % | |
| Earnings Growth YoY | 16.928 % | |
| Earnings Growth IPRWA | high: 250.0 % LAD: 33.681 % median: 25.806 % mean: 15.707 % low: -413.636 % |
|
| MARGINS | ||
| Gross Margin | 15.497 % | |
| Gross Margin QoQ | 0.846 % | |
| Gross Margin YoY | 0.473 % | |
| Gross Margin IPRWA | high: 96.246 % median: 44.264 % mean: 41.645 % LAD: 15.497 % low: 7.163 % |
|
| EBIT Margin | 4.944 % | |
| EBIT Margin QoQ | -3.869 % | |
| EBIT Margin YoY | 8.516 % | |
| EBIT Margin IPRWA | high: 20.408 % median: 14.796 % mean: 13.168 % LAD: 4.944 % low: -21.084 % |
|
| Return On Sales (ROS) | 4.228 % | |
| Return On Sales QoQ | -17.791 % | |
| Return On Sales YoY | -7.199 % | |
| Return On Sales IPRWA | high: 20.656 % median: 15.239 % mean: 13.257 % LAD: 4.228 % low: -21.084 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -70.80 M | |
| Free Cash Flow Yield | -0.859 % | |
| Free Cash Flow Yield QoQ | -128.09 % | |
| Free Cash Flow Yield YoY | -78.546 % | |
| Free Cash Flow Yield IPRWA | high: 12.388 % median: 0.648 % mean: 0.403 % LAD: -0.859 % low: -30.926 % |
|
| Free Cash Growth | -127.94 % | |
| Free Cash Growth QoQ | -91.647 % | |
| Free Cash Growth YoY | -44.584 % | |
| Free Cash Growth IPRWA | high: 290.52 % median: -2.575 % mean: -32.44 % LAD: -127.94 % low: -376.591 % |
|
| Free Cash To Net Income | -0.276 | |
| Cash Flow Margin | 0.668 % | |
| Cash Flow To Earnings | 0.25 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 1.075 % | |
| Return On Assets QoQ | 19.577 % | |
| Return On Assets YoY | 13.877 % | |
| Return On Assets IPRWA | high: 5.121 % median: 3.312 % mean: 2.813 % LAD: 1.075 % low: -7.954 % |
|
| Return On Capital Employed (ROCE) | 2.685 % | |
| Return On Equity (ROE) | 0.037 | |
| Return On Equity QoQ | 18.258 % | |
| Return On Equity YoY | 8.977 % | |
| Return On Equity IPRWA | high: 0.225 median: 0.045 LAD: 0.037 mean: 0.022 low: -0.288 |
|
| DuPont ROE | 3.726 % | |
| Return On Invested Capital (ROIC) | 1.68 % | |
| Return On Invested Capital QoQ | -3.78 % | |
| Return On Invested Capital YoY | -75.141 % | |
| Return On Invested Capital IPRWA | high: 15.529 % median: 10.259 % mean: 8.687 % LAD: 1.68 % low: -13.266 % |
|