LAD (Lithia Motors) 5-Year Yield-on-Cost %: 1.05 (As of Aug. 03, 2026) — 23% Below Median

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Director of Data and Quant Analytics at GuruFocus
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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.

LAD Lithia Motors Inc LAD
90 GF Score
Price $385.42
GF Value $380.88
Valuation Fairly Valued
! 13 Warning Signs
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What is Lithia Motors 5-Year Yield-on-Cost %?

Lithia Motors LAD -4.84% 90 5-Year Yield-on-Cost % is 1.05 as of Aug. 03, 2026, which is 23% below its 10-year median of 1.36. 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. Among 859 Vehicles & Parts companies, Lithia Motors ranks worse than 77.07% on this metric.

Lithia Motors's yield on cost for the quarter that ended in Jun. 2026 was 1.05.


The historical rank and industry rank for Lithia Motors's 5-Year Yield-on-Cost % or its related term are showing as below:

LAD' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.58   Med: 1.36   Max: 3.38
Current: 1.05


During the past 13 years, Lithia Motors's highest Yield on Cost was 3.38. The lowest was 0.58. And the median was 1.36.


LAD's 5-Year Yield-on-Cost % is ranked worse than
77.07% of 859 companies
in the Vehicles & Parts industry
Industry Median: 3.17 vs LAD: 1.05

Lithia Motors  (NYSE:LAD) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Lithia Motors 5-Year Yield-on-Cost % Related Terms


LAD vs ALTB, KMX, AN: 5-Year Yield-on-Cost % Comparison

For the Auto & Truck Dealerships subindustry, Lithia Motors's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Lithia Motors's 5-Year Yield-on-Cost % falls into.


LAD
90GF Score
Lithia Motors Inc LAD
5-Year Yield-on-Cost % is just one metric. See GF Score™, valuation, warning signs, and more.
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Lithia Motors 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Lithia Motors is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5
Frequently Asked Questions Learn more about 5-Year Yield-on-Cost % →
What does a 5-Year Yield-on-Cost % of 1.05 mean?
Lithia Motors (LAD) has a 5-Year Yield-on-Cost % of 1.05 as of Aug. 03, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Lithia Motors and its competitors. This is 23% below median its historical median of 1.36. Over the past decade, Lithia Motors' 5-Year Yield-on-Cost % has ranged from 0.58 to 3.38. According to the industry distribution chart, Lithia Motors ranks #662 out of 859 companies in the Vehicles & Parts industry, placing it in the top 77.1%.
Is Lithia Motors' 5-Year Yield-on-Cost % too high?
Lithia Motors' current 5-Year Yield-on-Cost % of 1.05 is 23% below median its 10-year median of 1.36. Over the past 10 years, this metric has ranged from a low of 0.58 to a high of 3.38. The Vehicles & Parts industry median 5-Year Yield-on-Cost % is 3.17. Lithia Motors' value of 1.05 is 66.9% below this industry median. Based on the distribution chart, Lithia Motors ranks #662 out of 859 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' 5-Year Yield-on-Cost % compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Lithia Motors ranks #662 out of 859 companies for 5-Year Yield-on-Cost %. This places Lithia Motors in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.17. Lithia Motors' value of 1.05 is 66.9% below this benchmark. Historically, Lithia Motors' own 5-Year Yield-on-Cost % has ranged from 0.58 to 3.38 over the past decade. While the company's 10-year median is 1.36 vs. the industry median of 3.17, 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 5-Year Yield-on-Cost % for a Vehicles & Parts company?
The median 5-Year Yield-on-Cost % among Vehicles & Parts companies is 3.17, based on 859 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithia Motors's current 5-Year Yield-on-Cost % of 1.05 is 66.9% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Lithia Motors and its competitors. For the Vehicles & Parts industry, the median 5-Year Yield-on-Cost % is 3.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithia Motors's current 5-Year Yield-on-Cost % is 1.05, which is 23% below median its own 10-year median of 1.36. 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 $380.88, compared to a current price of $385.42 — trading 1.2% above its estimated fair value. The current 5-Year Yield-on-Cost % is 1.05, which is 23% below median its 10-year median of 1.36 and 66.9% below the Vehicles & Parts industry median of 3.17. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Lithia Motors (LAD), the current 5-Year Yield-on-Cost % is 1.05 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 (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 $380.88. GuruFocus considers Lithia Motors to be Fairly Valued.

Key valuation signals for LAD:

  • 5-Year Yield-on-Cost %: 1.05 (23% below median its 10-year median of 1.36)
  • GF Value™: $380.88 vs. price of $385.42 (1.2% above fair value)
  • GF Score™: 90/100 with 13 warning signs
  • Industry Position: 66.9% below the Vehicles & Parts median (#662 of 859)

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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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$385.42
Price
$380.88
GF Value