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Lithia MotorsFRA:LMO -5.41%90 Altman Z2-Score is 1.59 as of Aug. 03, 2026, which is 28% below its 10-year median of 2.20. 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 1,285 Vehicles & Parts companies, Lithia Motors ranks worse than 71.36% on this metric.
Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
Lithia Motors has a Altman Z2-Score of 1.59, indicating it is in Grey Zones. This implies that Lithia Motors is in some kind of financial stress. If it is below 1.1, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for Lithia Motors's Altman Z2-Score or its related term are showing as below:
FRA:LMO'
s Altman Z2-Score Range Over the Past 10 Years
Min: 1.59 Med: 2.2 Max: 3.27
Current: 1.59
During the past 13 years, Lithia Motors's highest Altman Z2-Score was 3.27. The lowest was 1.59. And the median was 2.20.
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
Altman Z2-Score does not apply to financial companies.
Lithia Motors Altman Z2-Score Related Terms
Lithia Motors Altman Z2-Score Historical Data
* Premium members only.
The historical data trend for Lithia Motors's Altman Z2-Score 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: Altman Z2-Score Comparison
For the Auto & Truck Dealerships subindustry, Lithia Motors's Altman Z2-Score, along with its competitors' market caps and Altman Z2-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 Altman Z2-Score vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Lithia Motors's Altman Z2-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
Lithia Motors's Altman Z2-Score for today is calculated with this formula:
Z
=
6.56
*
X1
+
3.26
*
X2
+
6.72
*
X3
+
1.05
*
X4_2
=
6.56
*
0.0009
+
3.26
*
0.2425
+
6.72
*
0.067
+
1.05
*
0.323
=
1.59
* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
Lithia Motors (FRA:LMO) has a Altman Z2-Score of 1.59 as of Aug. 03, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Lithia Motors and its competitors. This is 28% below median its historical median of 2.20. Over the past decade, Lithia Motors' Altman Z2-Score has ranged from 1.59 to 3.27. According to the industry distribution chart, Lithia Motors ranks #917 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 71.4%.
Is Lithia Motors' Altman Z2-Score too high?
Lithia Motors' current Altman Z2-Score of 1.59 is 28% below median its 10-year median of 2.20. Over the past 10 years, this metric has ranged from a low of 1.59 to a high of 3.27. The Vehicles & Parts industry median Altman Z2-Score is 2.98. Lithia Motors' value of 1.59 is 46.6% below this industry median. Based on the distribution chart, Lithia Motors ranks #917 out of 1285 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' Altman Z2-Score compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Lithia Motors ranks #917 out of 1285 companies for Altman Z2-Score. This places Lithia Motors in the lower half of its industry. The industry median Altman Z2-Score is 2.98. Lithia Motors' value of 1.59 is 46.6% below this benchmark. Historically, Lithia Motors' own Altman Z2-Score has ranged from 1.59 to 3.27 over the past decade. While the company's 10-year median is 2.20 vs. the industry median of 2.98, 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 Altman Z2-Score for a Vehicles & Parts company?
The median Altman Z2-Score among Vehicles & Parts companies is 2.98, based on 1,285 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithia Motors's current Altman Z2-Score of 1.59 is 46.6% 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 Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Lithia Motors and its competitors. For the Vehicles & Parts industry, the median Altman Z2-Score is 2.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithia Motors's current Altman Z2-Score is 1.59, which is 28% below median its own 10-year median of 2.20. 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 Altman Z2-Score is 1.59, which is 28% below median its 10-year median of 2.20 and 46.6% below the Vehicles & Parts industry median of 2.98. 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 Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For Lithia Motors (FRA:LMO), the current Altman Z2-Score is 1.59 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:
Altman Z2-Score: 1.59 (28% below median its 10-year median of 2.20)
GF Value™: €333.64 vs. price of €350.00 (4.9% above fair value)
Industry Position: 46.6% below the Vehicles & Parts median (#917 of 1285)
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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