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Lithia MotorsLAD +0.14%90 Debt-to-Equity is 2.59 as of Jun. 2026, which is 19% above its 10-year median of 2.18. GuruFocus rates LAD with a GF Score™ of 90/100 and a GF Value™ of $380.88 (Fairly Valued). The stock has 13 warning signs investors should review. Among 1,217 Vehicles & Parts companies, Lithia Motors ranks worse than 94.41% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Lithia Motors's Debt-to-Equity or its related term are showing as below:
LAD'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.91 Med: 2.18 Max: 2.95
Current: 2.59
During the past 13 years, the highest Debt-to-Equity Ratio of Lithia Motors was 2.95. The lowest was 0.91. And the median was 2.18.
LAD's Debt-to-Equity is ranked worse than 94.41% of 1217
companies
in the Vehicles & Parts industry
Industry Median: 0.46
vs LAD: 2.59
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Lithia Motors Debt-to-Equity Related Terms
Lithia Motors Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Lithia Motors's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto & Truck Dealerships subindustry, Lithia Motors's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lithia Motors Debt-to-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Lithia Motors's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lithia Motors (LAD) has a Debt-to-Equity of 2.59 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Lithia Motors and its competitors. This is 19% above median its historical median of 2.18. Over the past decade, Lithia Motors' Debt-to-Equity has ranged from 0.91 to 2.95. According to the industry distribution chart, Lithia Motors ranks #1149 out of 1217 companies in the Vehicles & Parts industry, placing it in the top 94.4%.
Is Lithia Motors' Debt-to-Equity too high?
Lithia Motors' current Debt-to-Equity of 2.59 is 19% above median its 10-year median of 2.18. Over the past 10 years, this metric has ranged from a low of 0.91 to a high of 2.95. The Vehicles & Parts industry median Debt-to-Equity is 0.46. Lithia Motors' value of 2.59 is 463% above this industry median. Based on the distribution chart, Lithia Motors ranks #1149 out of 1217 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Lithia Motors has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lithia Motors' Debt-to-Equity compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Lithia Motors ranks #1149 out of 1217 companies for Debt-to-Equity. This places Lithia Motors in the lower half of its industry. The industry median Debt-to-Equity is 0.46. Lithia Motors' value of 2.59 is 463% above this benchmark. Historically, Lithia Motors' own Debt-to-Equity has ranged from 0.91 to 2.95 over the past decade. While the company's 10-year median is 2.18 vs. the industry median of 0.46, Lithia Motors has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Vehicles & Parts company?
The median Debt-to-Equity among Vehicles & Parts companies is 0.46, based on 1,217 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithia Motors's current Debt-to-Equity of 2.59 is 463% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Lithia Motors and its competitors. For the Vehicles & Parts industry, the median Debt-to-Equity is 0.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithia Motors's current Debt-to-Equity is 2.59, which is 19% above median its own 10-year median of 2.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lithia Motors stock overvalued right now?
Based on GuruFocus' analysis, Lithia Motors (LAD) is currently considered Fairly Valued. The stock's GF Value™ is $380.88, compared to a current price of $385.96 — trading 1.3% above its estimated fair value. The current Debt-to-Equity is 2.59, which is 19% above median its 10-year median of 2.18 and 463% above the Vehicles & Parts industry median of 0.46. Lithia Motors' overall GF Score™ is 90/100 with 13 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Lithia Motors (LAD), the current Debt-to-Equity is 2.59 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lithia Motors (LAD) Overvalued in 2026?
Based on GuruFocus' analysis, Lithia Motors stock appears to be overvalued.
The current stock price of $385.96 is trading 1.3% above its estimated GF Value™ of $380.88.
GuruFocus considers Lithia Motors to be Fairly Valued.
Key valuation signals for LAD:
Debt-to-Equity: 2.59 (19% above median its 10-year median of 2.18)
GF Value™: $380.88 vs. price of $385.96 (1.3% above fair value)
Industry Position: 463% above the Vehicles & Parts median (#1149 of 1217)
No single metric tells the full story. See the LAD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lithia Motors is a retailer of new and used vehicles and related services. The company offers nearly 60 brands of vehicles at nearly 500 stores globally across the US, Canada, and UK. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the US and we expect more deals over time in the US and, at times, abroad. Annual revenue in 2025 was $37.6 billion and we see over $50 billion possible in a few years. The US was 78.5% of 2025 revenue and the UK second at 18.4%, due to the 2024 Pendragon acquisition. In 2025, new vehicle sales were about 50% of total revenue. Lithia was founded in 1946, went public in 1996, and is the largest US auto dealer. It is based in Medford, Oregon.
90GF Score
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