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Lithia MotorsFRA:LMO -5.41%90 Pretax Margin % is 3.60% as of Jun. 2026, which is 7% above its 10-year median of 3.36. 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 1,320 Vehicles & Parts companies, Lithia Motors ranks worse than 64.02% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Lithia Motors's Pre-Tax Income for the
three
months ended in Jun. 2026 was €306 Mil. Lithia Motors's Revenue for the
three
months ended in Jun. 2026 was €8,499 Mil. Therefore, Lithia Motors's pretax margin for the quarter that ended in Jun. 2026 was 3.60%.
The historical rank and industry rank for Lithia Motors's Pretax Margin % or its related term are showing as below:
FRA:LMO'
s Pretax Margin % Range Over the Past 10 Years
Min: 2.55 Med: 3.36 Max: 6.5
Current: 2.55
FRA:LMO's Pretax Margin % is ranked worse than 64.02% of 1320
companies
in the Vehicles & Parts industry
Industry Median: 4.51
vs FRA:LMO: 2.55
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Lithia Motors Pretax Margin % Related Terms
Lithia Motors Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Lithia Motors's Pretax Margin % 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.
FRA:LMO vs ALTB, KMX, AN: Pretax Margin % Comparison
For the Auto & Truck Dealerships subindustry, Lithia Motors's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Lithia Motors's Pretax Margin % 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 (FRA:LMO) has a Pretax Margin % of 3.60% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lithia Motors and its competitors. This is near median its historical median of 3.36. Over the past decade, Lithia Motors' Pretax Margin % has ranged from 2.55 to 6.50. According to the industry distribution chart, Lithia Motors ranks #845 out of 1320 companies in the Vehicles & Parts industry, placing it in the top 64%.
Is Lithia Motors' Pretax Margin % too high?
Lithia Motors' current Pretax Margin % of 3.60% is near median its 10-year median of 3.36. Over the past 10 years, this metric has ranged from a low of 2.55 to a high of 6.50. The Vehicles & Parts industry median Pretax Margin % is 4.51. Lithia Motors' value of 3.60% is 20.2% below this industry median. Based on the distribution chart, Lithia Motors ranks #845 out of 1320 companies in the Vehicles & Parts industry, which is below the industry midpoint. 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' Pretax Margin % compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Lithia Motors ranks #845 out of 1320 companies for Pretax Margin %. This places Lithia Motors in the lower half of its industry. The industry median Pretax Margin % is 4.51. Lithia Motors' value of 3.60% is 20.2% below this benchmark. Historically, Lithia Motors' own Pretax Margin % has ranged from 2.55 to 6.50 over the past decade. While the company's 10-year median is 3.36 vs. the industry median of 4.51, 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 Pretax Margin % for a Vehicles & Parts company?
The median Pretax Margin % among Vehicles & Parts companies is 4.51, based on 1,320 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithia Motors's current Pretax Margin % of 3.60% is 20.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lithia Motors and its competitors. For the Vehicles & Parts industry, the median Pretax Margin % is 4.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithia Motors's current Pretax Margin % is 3.60%, which is near median its own 10-year median of 3.36. 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 Pretax Margin % is 3.60%, which is near median its 10-year median of 3.36 and 20.2% below the Vehicles & Parts industry median of 4.51. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Lithia Motors (FRA:LMO), the current Pretax Margin % is 3.60% 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 (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:
Pretax Margin %: 3.60% (near median its 10-year median of 3.36)
GF Value™: €333.64 vs. price of €350.00 (4.9% above fair value)
Industry Position: 20.2% below the Vehicles & Parts median (#845 of 1320)
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 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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