Lithia Motors (FRA:LMO) Moat Score: 6/10 (As of Aug. 03, 2026)

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Director of Data and Quant Analytics at GuruFocus
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FRA:LMO Lithia Motors Inc FRA:LMO
91 GF Score
Price €350.00
GF Value €333.64
Valuation Fairly Valued
! 13 Warning Signs
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What is Lithia Motors Moat Score?

Lithia Motors FRA:LMO -5.41% 91 Moat Score is 6 as of Aug. 03, 2026. GuruFocus rates FRA:LMO with a GF Score™ of 91/100 and a GF Value™ of €333.64 (Fairly Valued). The stock has 13 warning signs investors should review. Among 1,310 Vehicles & Parts companies, Lithia Motors ranks better than 98.55% on this metric.

Lithia Motors has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Lithia Motors has Narrow Moat: Lithia Motors has a strong narrow moat due to its extensive distribution network and economies of scale. It has a significant market share in the automotive retail sector, but lacks the brand strength and customer loyalty needed for a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Lithia Motors might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Lithia Motors  (FRA:LMO) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Lithia Motors Moat Score Related Terms

FRA:LMO vs ALTB, KMX, AN: Moat Score Comparison

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

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

* The bar in red indicates where Lithia Motors's Moat Score falls into.


FRA:LMO
91GF Score
Lithia Motors Inc FRA:LMO
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Lithia Motors (FRA:LMO) has a Moat Score of 6 as of Aug. 03, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Lithia Motors ranks #19 out of 1310 companies in the Vehicles & Parts industry, placing it in the top 1.5%.
Is Lithia Motors' Moat Score too high?
Lithia Motors' current Moat Score is 6. Based on the distribution chart, Lithia Motors ranks #19 out of 1310 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Lithia Motors has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lithia Motors' Moat Score compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Lithia Motors ranks #19 out of 1310 companies for Moat Score. This places Lithia Motors in the top 2% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Vehicles & Parts company?
A good Moat Score depends on the Vehicles & Parts industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Lithia Motors's current Moat Score is 6. 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 Moat Score is 6. Lithia Motors' overall GF Score™ is 91/100 with 13 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Lithia Motors (FRA:LMO), the current Moat Score is 6 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:

  • Moat Score: 6
  • GF Value™: €333.64 vs. price of €350.00 (4.9% above fair value)
  • GF Score™: 91/100 with 13 warning signs

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.
91GF Score

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

€350.00
Price
€333.64
GF Value