Lithia Motors: An Undervalued Stock With OEM-Backed Flywheel Business Model

Lithia Motors, an American automotive dealership group, is now a $6 billion (by market cap) car dealership aggregator. LAD increased its dividend for 16 consecutive years, with a 10-year dividend growth rate of 11.1%. Lithia grew its revenue from $8.7 billion in FY 2016 to $37.6 billion in FY 2025, a compound annual growth rate of 17.7%.