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Lithia MotorsFRA:LMO -5.41%90 Altman Z-Score is 2.25 as of Aug. 03, 2026, which is 29% below its 10-year median of 3.16. 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 1,313 Vehicles & Parts companies, Lithia Motors ranks worse than 56.05% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 2.27 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
Lithia Motors has a Altman Z-Score of 2.25, indicating it is in Grey Zones. This implies that Lithia Motors is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Lithia Motors's Altman Z-Score or its related term are showing as below:
FRA:LMO'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.2 Med: 3.16 Max: 3.95
Current: 2.27
During the past 13 years, Lithia Motors's highest Altman Z-Score was 3.95. The lowest was 2.20. And the median was 3.16.
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.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Lithia Motors Altman Z-Score Related Terms
Lithia Motors Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Lithia Motors's Altman Z-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 Z-Score Comparison
For the Auto & Truck Dealerships subindustry, Lithia Motors's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Z-Score vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Lithia Motors's Altman Z-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.
Lithia Motors's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.0009
+
1.4
*
0.2425
+
3.3
*
0.067
+
0.6
*
0.4274
+
1.0
*
1.4318
=
2.25
* 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 Z-Score when X4 or X5 value is 0.
Lithia Motors (FRA:LMO) has a Altman Z-Score of 2.25 as of Aug. 03, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Lithia Motors and its competitors. This is 29% below median its historical median of 3.16. Over the past decade, Lithia Motors' Altman Z-Score has ranged from 2.20 to 3.95. According to the industry distribution chart, Lithia Motors ranks #736 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 56.1%.
Is Lithia Motors' Altman Z-Score too high?
Lithia Motors' current Altman Z-Score of 2.25 is 29% below median its 10-year median of 3.16. Over the past 10 years, this metric has ranged from a low of 2.20 to a high of 3.95. The Vehicles & Parts industry median Altman Z-Score is 2.51. Lithia Motors' value of 2.25 is 10.4% below this industry median. Based on the distribution chart, Lithia Motors ranks #736 out of 1313 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 Z-Score compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Lithia Motors ranks #736 out of 1313 companies for Altman Z-Score. This places Lithia Motors in the lower half of its industry. The industry median Altman Z-Score is 2.51. Lithia Motors' value of 2.25 is 10.4% below this benchmark. Historically, Lithia Motors' own Altman Z-Score has ranged from 2.20 to 3.95 over the past decade. While the company's 10-year median is 3.16 vs. the industry median of 2.51, 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 Altman Z-Score for a Vehicles & Parts company?
The median Altman Z-Score among Vehicles & Parts companies is 2.51, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithia Motors's current Altman Z-Score of 2.25 is 10.4% 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 Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Lithia Motors and its competitors. For the Vehicles & Parts industry, the median Altman Z-Score is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithia Motors's current Altman Z-Score is 2.25, which is 29% below median its own 10-year median of 3.16. 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 Z-Score is 2.25, which is 29% below median its 10-year median of 3.16 and 10.4% below the Vehicles & Parts industry median of 2.51. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Lithia Motors (FRA:LMO), the current Altman Z-Score is 2.25 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 Z-Score: 2.25 (29% below median its 10-year median of 3.16)
GF Value™: €333.64 vs. price of €350.00 (4.9% above fair value)
Industry Position: 10.4% below the Vehicles & Parts median (#736 of 1313)
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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