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Lithia MotorsLAD -4.84%90 Return-on-Tangible-Asset is 5.02% as of Jun. 2026, which is 21% below its 10-year median of 6.36. GuruFocus rates LAD with a GF Score™ of 90/100 and a GF Value™ of $380.67 (Fairly Valued). The stock has 13 warning signs investors should review. Among 1,331 Vehicles & Parts companies, Lithia Motors ranks better than 52.74% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Lithia Motors's annualizedNet Income for the quarter that ended in Jun. 2026 was $1,040 Mil. Lithia Motors's average total tangible assets for the quarter that ended in Jun. 2026 was $20,717 Mil. Therefore, Lithia Motors's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 5.02%.
The historical rank and industry rank for Lithia Motors's Return-on-Tangible-Asset or its related term are showing as below:
LAD'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 3.59 Med: 6.36 Max: 12.98
Current: 3.59
During the past 13 years, Lithia Motors's highest Return-on-Tangible-Asset was 12.98%. The lowest was 3.59%. And the median was 6.36%.
LAD's Return-on-Tangible-Asset is ranked better than 52.74% of 1331
companies
in the Vehicles & Parts industry
Industry Median: 3.19
vs LAD: 3.59
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Lithia Motors Return-on-Tangible-Asset Related Terms
Lithia Motors Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Lithia Motors's Return-on-Tangible-Asset 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.
LAD vs ALTB, KMX, AN: Return-on-Tangible-Asset Comparison
For the Auto & Truck Dealerships subindustry, Lithia Motors's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Lithia Motors's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.02% mean?
Lithia Motors (LAD) has a Return-on-Tangible-Asset of 5.02% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Lithia Motors and its competitors. This is 21% below median its historical median of 6.36. Over the past decade, Lithia Motors' Return-on-Tangible-Asset has ranged from 3.59 to 12.98. According to the industry distribution chart, Lithia Motors ranks #629 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 47.3%.
Is Lithia Motors' Return-on-Tangible-Asset too high?
Lithia Motors' current Return-on-Tangible-Asset of 5.02% is 21% below median its 10-year median of 6.36. Over the past 10 years, this metric has ranged from a low of 3.59 to a high of 12.98. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.19. Lithia Motors' value of 5.02% is 57.4% above this industry median. Based on the distribution chart, Lithia Motors ranks #629 out of 1331 companies in the Vehicles & Parts industry, which is above 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' Return-on-Tangible-Asset compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Lithia Motors ranks #629 out of 1331 companies for Return-on-Tangible-Asset. This puts Lithia Motors in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.19. Lithia Motors' value of 5.02% is 57.4% above this benchmark. Historically, Lithia Motors' own Return-on-Tangible-Asset has ranged from 3.59 to 12.98 over the past decade. While the company's 10-year median is 6.36 vs. the industry median of 3.19, 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 Return-on-Tangible-Asset for a Vehicles & Parts company?
The median Return-on-Tangible-Asset among Vehicles & Parts companies is 3.19, based on 1,331 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithia Motors's current Return-on-Tangible-Asset of 5.02% is 57.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Lithia Motors and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Asset is 3.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithia Motors's current Return-on-Tangible-Asset is 5.02%, which is 21% below median its own 10-year median of 6.36. 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 (LAD) is currently considered Fairly Valued. The stock's GF Value™ is $380.67, compared to a current price of $385.42 — trading 1.2% above its estimated fair value. The current Return-on-Tangible-Asset is 5.02%, which is 21% below median its 10-year median of 6.36 and 57.4% above the Vehicles & Parts industry median of 3.19. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Lithia Motors (LAD), the current Return-on-Tangible-Asset is 5.02% 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 $385.42 is trading 1.2% above its estimated GF Value™ of $380.67.
GuruFocus considers Lithia Motors to be Fairly Valued.
Key valuation signals for LAD:
Return-on-Tangible-Asset: 5.02% (21% below median its 10-year median of 6.36)
GF Value™: $380.67 vs. price of $385.42 (1.2% above fair value)
Industry Position: 57.4% above the Vehicles & Parts median (#629 of 1331)
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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