LAD (Lithia Motors) ROCE %: 12.61% (As of Jun. 2026)

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LAD Lithia Motors Inc LAD
90 GF Score
Price $387.59
GF Value $380.88
Valuation Fairly Valued
! 13 Warning Signs
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What is Lithia Motors ROCE %?

Lithia Motors LAD +0.56% 90 ROCE % is 12.61% as of Jun. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Lithia Motors's annualized ROCE % for the quarter that ended in Jun. 2026 was 12.61%.

Lithia Motors  (NYSE:LAD) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Lithia Motors ROCE % Related Terms

Lithia Motors ROCE % Historical Data

* Premium members only.

The historical data trend for Lithia Motors's ROCE % 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 ROCE % Chart

Lithia Motors Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.74 19.05 14.27 11.92 10.79

Lithia Motors Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
ROCE % 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 12.57 10.75 8.67 7.56 12.61
LAD
90GF Score
Lithia Motors Inc LAD
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Lithia Motors ROCE % Calculation

Lithia Motors's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=1887.7/( ( (23122.6 - 6551.1) + (25107.2 - 6696.7) )/ 2 )
=1887.7/( (16571.5+18410.5)/ 2 )
=1887.7/17491
=10.79 %

Lithia Motors's ROCE % of for the quarter that ended in Jun. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=2242/( ( (25749.7 - 8199.7) + (26245.8 - 8248.9) )/ 2 )
=2242/( ( 17550 + 17996.9 )/ 2 )
=2242/17773.45
=12.61 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 12.61% mean?
Lithia Motors (LAD) has a ROCE % of 12.61% as of Jun. 2026.
Is Lithia Motors' ROCE % too high?
Lithia Motors' current ROCE % is 12.61%. The Vehicles & Parts industry median ROCE % is 7.99. Lithia Motors' value of 12.61% is 57.9% above this industry median. 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' ROCE % compare to ALTB and KMX?
Lithia Motors' ROCE % of 12.61% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 7.99. Lithia Motors' value of 12.61% is 57.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 7.99, based on 1,316 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithia Motors's current ROCE % of 12.61% is 57.9% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median ROCE % is 7.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithia Motors's current ROCE % is 12.61%. 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 $387.59 — trading 1.8% above its estimated fair value. The current ROCE % is 12.61% and 57.9% above the Vehicles & Parts industry median of 7.99. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Lithia Motors (LAD), the current ROCE % is 12.61% 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 $387.59 is trading 1.8% above its estimated GF Value™ of $380.88. GuruFocus considers Lithia Motors to be Fairly Valued.

Key valuation signals for LAD:

  • ROCE %: 12.61%
  • GF Value™: $380.88 vs. price of $387.59 (1.8% above fair value)
  • GF Score™: 90/100 with 13 warning signs
  • Industry Position: 57.9% above the Vehicles & Parts median

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 Business Description

Other Exchanges LMO:Germany
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

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

$387.59
Price
$380.88
GF Value