Does Lithia Motors, Inc. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Lithia Motors, Inc. (LAD) 48.0 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 24, returns on capital 63, balance-sheet safety 9, capital discipline 100.

Is LAD stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $473.19 per share versus a recent price of $335.28 — 29% below value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has LAD's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 48.0 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Lithia Motors, Inc.

LAD · Consumer Discretionary · $7.9B mkt cap · FY2025 filings · Shallow moat ·

On the watchlist

Shallow moat

The four filters

Pricing power24

Median gross margin 15.4% over 10y, stable.

Returns on capital63

Median ROIC 13.0%, above the 9% hurdle in 80% of years.

Balance-sheet safety9

Net debt/EBITDA 4.9x, interest coverage 6x.

Capital discipline100

Owner earnings +17.2%/yr, share count shrinking (buybacks).

Margin of safety

Above valueOn sale

29% below value

Owner earnings (normalized): $1.0B
Est. intrinsic value / share: $473.19
Recent price: $335.28
Discount to value: 29% below value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

18 years of fundamentals

The business, in plain English

Lithia Motors, Inc. booked $37.6B of revenue in FY2025 in the Consumer Discretionary sector and kept 15.2% of it as gross profit — a thin-margin business by that measure. After every other cost, 2.2% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $1.7B (FY2009) to $37.6B (FY2025) — about 21.2% a year compounded over 16 years.

It earned 7.4% on invested capital in FY2025, with a median of 13.5% across 17 filed years. The Returns on Capital filter above scores it 63/100.

The balance sheet carried $9.8B of total debt in FY2025 against $819.6M of owner earnings — roughly 12.0 years of owner earnings to retire it all. Balance-Sheet Safety scores it 9/100.

Put together: Capital Discipline is the strongest of the four filters (100/100) and Balance-Sheet Safety the weakest (9/100), which is how LAD lands at 48/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$37.6B FY2025

Gross marginRevenue kept after cost of goods15.2% FY2025

Return on invested capitalOperating profit on the capital employed7.4% FY2025

Owner earningsCash an owner could take out$819.6M FY2025

Gaps in a line mean that item isn’t in LAD’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale48.0 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — LAD has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Consumer Discretionary context

#162 of 340 scored Consumer Discretionary companies, ranked by Moat Score.

Nearest peers by Moat Score

#160HURN HURON CONSULTING GROUP INC.48.5 out of 100, Shallow moatShallow moat
#161DBI DESIGNER BRANDS INC.48.3 out of 100, Shallow moatShallow moat
#163DAKT Daktronics, Inc.47.9 out of 100, Shallow moatShallow moat
#164VVX V2X, Inc.47.9 out of 100, Shallow moatShallow moat

Compare LAD with its nearest peers →All Consumer Discretionary companies on the Index →

Common questions about LAD

Does Lithia Motors, Inc. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Lithia Motors, Inc. (LAD) 48.0 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 24, returns on capital 63, balance-sheet safety 9, capital discipline 100.
Is LAD stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $473.19 per share versus a recent price of $335.28 — 29% below value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has LAD's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 48.0 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell LAD. See the disclaimer.