Lithia Motors (FRA:LMO) Piotroski F-Score: 2 (As of Aug. 03, 2026) — 60% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:LMO Lithia Motors Inc FRA:LMO
90 GF Score
Price €350.00
GF Value €333.64
Valuation Fairly Valued
! 13 Warning Signs
View Full Analysis

What is Lithia Motors Piotroski F-Score?

Lithia Motors FRA:LMO -5.41% 90 Piotroski F-Score is 2 as of Aug. 03, 2026, which is 60% below its 10-year median of 5.00. GuruFocus rates FRA:LMO with a GF Score™ of 90/100 and a GF Value™ of €333.64 (Fairly Valued). The stock has 13 warning signs investors should review. Among 1,282 Vehicles & Parts companies, Lithia Motors ranks worse than 95.32% on this metric.

Warning Sign:

Piotroski F-Score of 2 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lithia Motors has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for Lithia Motors's Piotroski F-Score or its related term are showing as below:

FRA:LMO' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 8
Current: 2

During the past 13 years, the highest Piotroski F-Score of Lithia Motors was 8. The lowest was 2. And the median was 5.

Lithia Motors  (FRA:LMO) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Lithia Motors Piotroski F-Score Related Terms


Lithia Motors Piotroski F-Score Historical Data

* Premium members only.

The historical data trend for Lithia Motors's Piotroski F-Score 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.

Lithia Motors Piotroski F-Score Chart

Lithia Motors Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 3.00 2.00 4.00 3.00

Lithia Motors Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 3.00 2.00 2.00

FRA:LMO vs ALTB, KMX, AN: Piotroski F-Score Comparison

For the Auto & Truck Dealerships subindustry, Lithia Motors's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Lithia Motors's Piotroski F-Score falls into.


FRA:LMO
90GF Score
Lithia Motors Inc FRA:LMO
Piotroski F-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

How is the Piotroski F-Score calculated?

* 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.

This Year (Jun26) TTM:Last Year (Jun25) TTM:
Net Income was 184.969 + 116.913 + 86.846 + 225.68 = €614 Mil.
Cash Flow from Operations was -83.837 + 105.64 + -93.766 + -57.028 = €-129 Mil.
Revenue was 8243.782 + 7854.921 + 8019.761 + 8498.848 = €32,617 Mil.
Gross Profit was 1249.032 + 1171.261 + 1229.77 + 1299.743 = €4,950 Mil.
Average Total Assets from the begining of this year (Jun25)
to the end of this year (Jun26) was
(20947.587 + 20890.273 + 21441.549 + 22273.49 + 22781.354) / 5 = €21666.8506 Mil.
Total Assets at the begining of this year (Jun25) was €20,948 Mil.
Long-Term Debt & Capital Lease Obligation was €8,706 Mil.
Total Current Assets was €7,181 Mil.
Total Current Liabilities was €7,160 Mil.
Net Income was 186.777 + 203.129 + 193.787 + 222.039 = €806 Mil.

Revenue was 8308.121 + 8760.693 + 8489.927 + 8308.461 = €33,867 Mil.
Gross Profit was 1288.79 + 1309.783 + 1304.62 + 1287.582 = €5,191 Mil.
Average Total Assets from the begining of last year (Jun24)
to the end of last year (Jun25) was
(21557.631 + 20958.612 + 22082.083 + 21719.185 + 20947.587) / 5 = €21453.0196 Mil.
Total Assets at the begining of last year (Jun24) was €21,558 Mil.
Long-Term Debt & Capital Lease Obligation was €8,093 Mil.
Total Current Assets was €6,886 Mil.
Total Current Liabilities was €5,647 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lithia Motors's current Net Income (TTM) was 614. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lithia Motors's current Cash Flow from Operations (TTM) was -129. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun25)
=614.408/20947.587
=0.02933073

ROA (Last Year)=Net Income/Total Assets (Jun24)
=805.732/21557.631
=0.03737572

Lithia Motors's return on assets of this year was 0.02933073. Lithia Motors's return on assets of last year was 0.03737572. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Lithia Motors's current Net Income (TTM) was 614. Lithia Motors's current Cash Flow from Operations (TTM) was -129. ==> -129 <= 614 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun26)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun25 to Jun26
=8706.387/21666.8506
=0.40182983

Gearing (Last Year: Jun25)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun24 to Jun25
=8093.098/21453.0196
=0.3772475

Lithia Motors's gearing of this year was 0.40182983. Lithia Motors's gearing of last year was 0.3772475. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun26)=Total Current Assets/Total Current Liabilities
=7181.224/7160.045
=1.00295794

Current Ratio (Last Year: Jun25)=Total Current Assets/Total Current Liabilities
=6885.541/5647.204
=1.21928321

Lithia Motors's current ratio of this year was 1.00295794. Lithia Motors's current ratio of last year was 1.21928321. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Lithia Motors's number of shares in issue this year was 22.5. Lithia Motors's number of shares in issue last year was 25.9. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=4949.806/32617.312
=0.15175395

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5190.775/33867.202
=0.15326849

Lithia Motors's gross margin of this year was 0.15175395. Lithia Motors's gross margin of last year was 0.15326849. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun25)
=32617.312/20947.587
=1.55709161

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun24)
=33867.202/21557.631
=1.57100759

Lithia Motors's asset turnover of this year was 1.55709161. Lithia Motors's asset turnover of last year was 1.57100759. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+0+0+0+0+0+1+0+0
=2

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lithia Motors has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

Frequently Asked Questions Learn more about Piotroski F-Score →
What does a Piotroski F-Score of 2 mean?
Lithia Motors (FRA:LMO) has a Piotroski F-Score of 2 as of Aug. 03, 2026. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Lithia Motors and its competitors. This is 60% below median its historical median of 5.00. Over the past decade, Lithia Motors' Piotroski F-Score has ranged from 2.00 to 8.00. According to the industry distribution chart, Lithia Motors ranks #1222 out of 1282 companies in the Vehicles & Parts industry, placing it in the top 95.3%.
Is Lithia Motors' Piotroski F-Score too high?
Lithia Motors' current Piotroski F-Score of 2 is 60% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 8.00. The Vehicles & Parts industry median Piotroski F-Score is 5.00. Lithia Motors' value of 2 is 60% below this industry median. Based on the distribution chart, Lithia Motors ranks #1222 out of 1282 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' Piotroski F-Score compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Lithia Motors ranks #1222 out of 1282 companies for Piotroski F-Score. This places Lithia Motors in the lower half of its industry. The industry median Piotroski F-Score is 5.00. Lithia Motors' value of 2 is 60% below this benchmark. Historically, Lithia Motors' own Piotroski F-Score has ranged from 2.00 to 8.00 over the past decade. While the company's 10-year median is 5.00 vs. the industry median of 5.00, Lithia Motors has consistently been below 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 Piotroski F-Score for a Vehicles & Parts company?
The median Piotroski F-Score among Vehicles & Parts companies is 5.00, based on 1,282 companies in the industry. Companies in the top quartile (top 25%) have a Piotroski F-Score significantly above this median, while those in the bottom quartile fall well below. However, Piotroski F-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithia Motors's current Piotroski F-Score of 2 is 60% below 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 Piotroski F-Score mean?
A high Piotroski F-Score can signal that a stock is expensive relative to its fundamentals. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Lithia Motors and its competitors. For the Vehicles & Parts industry, the median Piotroski F-Score is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithia Motors's current Piotroski F-Score is 2, which is 60% below median its own 10-year median of 5.00. 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 (FRA:LMO) is currently considered Fairly Valued. The stock's GF Value™ is €333.64, compared to a current price of €350.00 — trading 4.9% above its estimated fair value. The current Piotroski F-Score is 2, which is 60% below median its 10-year median of 5.00 and 60% below the Vehicles & Parts industry median of 5.00. 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 Piotroski F-Score calculated?
Piotroski F-Score is calculated from a company's financial statements. For Lithia Motors (FRA:LMO), the current Piotroski F-Score is 2 as of Aug. 03, 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 (FRA:LMO) Overvalued in 2026?

Based on GuruFocus' analysis, Lithia Motors stock appears to be overvalued. The current stock price of €350.00 is trading 4.9% above its estimated GF Value™ of €333.64. GuruFocus considers Lithia Motors to be Fairly Valued.

Key valuation signals for FRA:LMO:

  • Piotroski F-Score: 2 (60% below median its 10-year median of 5.00)
  • GF Value™: €333.64 vs. price of €350.00 (4.9% above fair value)
  • GF Score™: 90/100 with 13 warning signs
  • Industry Position: 60% below the Vehicles & Parts median (#1222 of 1282)

No single metric tells the full story. See the FRA:LMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lithia Motors Business Description

Other Exchanges LAD:USA
Address 150 N. Bartlett Street, Medford, OR, USA, 97501
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

Get the complete analysis for FRA:LMO

Piotroski F-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€350.00
Price
€333.64
GF Value