Lithia Motors, Inc. cash flow to debt ratio of 2.43% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Lithia Motors, Inc.'s free cash flow has decreased -92.13% from $73.70M last year to $5.80M, signaling decreasing performance

Lithia Motors, Inc.'s debt to equity ratio is 2.53, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Lithia Motors, Inc.'s debt has increased relative to shareholder equity from 2.08 last year to 2.53 today, signaling weakened financials

Lithia Motors, Inc. has a net debt to EBITDA ratio of 6.23x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Lithia Motors, Inc.'s interest coverage ratio is 1.96, which means that the company struggles to meet interest obligations, signaling financial risk.

Lithia Motors, Inc.'s profit margin has decreased (-15.03%) in the last year from 2.22% to 1.88%, signaling decreasing performance

Lithia Motors, Inc.'s short-term assets of $7.86G exceed its short-term liabilities of $6.70G

Lithia Motors, Inc.'s return on assets of 2.76% is lower than the 5.00% threshold, indicating inefficient asset utilization

Lithia Motors, Inc.'s return on equity of 10.63%, is lower than 15.00%, indicating bad performance

Lithia Motors, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Lithia Motors, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Lithia Motors, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Lithia Motors, Inc. has a free cash flow yield of 0.08%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Lithia Motors, Inc.'s yearly earnings has increased 2.19% since last year from $802.00M to $819.60M, signaling increasing performance

Lithia Motors, Inc.'s yearly revenue has increased 4.00% since last year from $36.19G to $37.63G, signaling increasing performance

ROIC 4.37% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Lithia Motors, Inc.'s 3-year revenue CAGR of 10.11% is positive, indicating growing revenue over the past 3 years

Lithia Motors, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance

Lithia Motors, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Lithia Motors, Inc. has insufficient data to evaluate this check.

Lithia Motors, Inc. has an earnings yield of 9.51%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Lithia Motors, Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Lithia Motors, Inc. has an EV/EBITDA ratio of 9.39x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Lithia Motors, Inc. is undervalued relative to its fair value price of 1.57K based on Earnings Fair Value model

Lithia Motors, Inc. has no meaningful EPS growth rate; PEG ratio cannot be computed.

Lithia Motors, Inc. has a price-to-book ratio of 1.17x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Lithia Motors, Inc. has a price-to-sales ratio of 0.20x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue