LKQ CORP (LKQ) Fundamental Analysis & Valuation

NASDAQ:LKQ • US5018892084

Current stock price

29.35 USD
+0.63 (+2.19%)
At close:
29.35 USD
0 (0%)
After Hours:

This LKQ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. LKQ Profitability Analysis

1.1 Basic Checks

  • In the past year LKQ was profitable.
  • LKQ had a positive operating cash flow in the past year.
  • Each year in the past 5 years LKQ has been profitable.
  • Each year in the past 5 years LKQ had a positive operating cash flow.
LKQ Yearly Net Income VS EBIT VS OCF VS FCFLKQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

1.2 Ratios

  • LKQ has a Return On Assets of 4.01%. This is in the better half of the industry: LKQ outperforms 63.64% of its industry peers.
  • The Return On Equity of LKQ (9.29%) is better than 68.18% of its industry peers.
  • LKQ's Return On Invested Capital of 6.81% is in line compared to the rest of the industry. LKQ outperforms 59.09% of its industry peers.
  • LKQ had an Average Return On Invested Capital over the past 3 years of 7.69%. This is below the industry average of 11.35%.
Industry RankSector Rank
ROA 4.01%
ROE 9.29%
ROIC 6.81%
ROA(3y)4.94%
ROA(5y)6.61%
ROE(3y)11.98%
ROE(5y)15.18%
ROIC(3y)7.69%
ROIC(5y)8.85%
LKQ Yearly ROA, ROE, ROICLKQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • With a decent Profit Margin value of 4.36%, LKQ is doing good in the industry, outperforming 72.73% of the companies in the same industry.
  • In the last couple of years the Profit Margin of LKQ has declined.
  • The Operating Margin of LKQ (8.05%) is better than 77.27% of its industry peers.
  • LKQ's Operating Margin has declined in the last couple of years.
  • With an excellent Gross Margin value of 38.70%, LKQ belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
  • In the last couple of years the Gross Margin of LKQ has remained more or less at the same level.
Industry RankSector Rank
OM 8.05%
PM (TTM) 4.36%
GM 38.7%
OM growth 3Y-10.94%
OM growth 5Y-2.57%
PM growth 3Y-20.89%
PM growth 5Y-4.12%
GM growth 3Y-1.88%
GM growth 5Y-0.47%
LKQ Yearly Profit, Operating, Gross MarginsLKQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. LKQ Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LKQ is destroying value.
  • The number of shares outstanding for LKQ has been reduced compared to 1 year ago.
  • Compared to 5 years ago, LKQ has less shares outstanding
  • LKQ has a better debt/assets ratio than last year.
LKQ Yearly Shares OutstandingLKQ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
LKQ Yearly Total Debt VS Total AssetsLKQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 2.58 indicates that LKQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a Altman-Z score value of 2.58, LKQ perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
  • LKQ has a debt to FCF ratio of 4.32. This is a neutral value as LKQ would need 4.32 years to pay back of all of its debts.
  • The Debt to FCF ratio of LKQ (4.32) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.56 indicates that LKQ is somewhat dependend on debt financing.
  • LKQ's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. LKQ outperforms 40.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 4.32
Altman-Z 2.58
ROIC/WACC0.8
WACC8.52%
LKQ Yearly LT Debt VS Equity VS FCFLKQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • LKQ has a Current Ratio of 1.67. This is a normal value and indicates that LKQ is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of LKQ (1.67) is comparable to the rest of the industry.
  • A Quick Ratio of 0.58 indicates that LKQ may have some problems paying its short term obligations.
  • LKQ has a worse Quick ratio (0.58) than 77.27% of its industry peers.
Industry RankSector Rank
Current Ratio 1.67
Quick Ratio 0.58
LKQ Yearly Current Assets VS Current LiabilitesLKQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. LKQ Growth Analysis

3.1 Past

  • LKQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.21%.
  • The Earnings Per Share has been growing slightly by 4.00% on average over the past years.
  • The Revenue has decreased by -3.06% in the past year.
  • The Revenue has been growing slightly by 3.26% on average over the past years.
EPS 1Y (TTM)-11.21%
EPS 3Y-6.99%
EPS 5Y4%
EPS Q2Q%-26.25%
Revenue 1Y (TTM)-3.06%
Revenue growth 3Y2.18%
Revenue growth 5Y3.26%
Sales Q2Q%-1.34%

3.2 Future

  • Based on estimates for the next years, LKQ will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.56% on average per year.
  • Based on estimates for the next years, LKQ will show a small growth in Revenue. The Revenue will grow by 3.69% on average per year.
EPS Next Y-0.8%
EPS Next 2Y3.19%
EPS Next 3Y4.98%
EPS Next 5Y9.56%
Revenue Next Year0.03%
Revenue Next 2Y0.83%
Revenue Next 3Y0.76%
Revenue Next 5Y3.69%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
LKQ Yearly Revenue VS EstimatesLKQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B 15B
LKQ Yearly EPS VS EstimatesLKQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3 4 5

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Find the best growth stocksShow best growing peers

7

4. LKQ Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.50 indicates a reasonable valuation of LKQ.
  • Based on the Price/Earnings ratio, LKQ is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of LKQ to the average of the S&P500 Index (26.11), we can say LKQ is valued rather cheaply.
  • A Price/Forward Earnings ratio of 9.57 indicates a reasonable valuation of LKQ.
  • Based on the Price/Forward Earnings ratio, LKQ is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
  • LKQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.12.
Industry RankSector Rank
PE 9.5
Fwd PE 9.57
LKQ Price Earnings VS Forward Price EarningsLKQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 95.45% of the companies in the same industry are more expensive than LKQ, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, LKQ is valued cheaper than 81.82% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.84
EV/EBITDA 6.94
LKQ Per share dataLKQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

  • The decent profitability rating of LKQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.38
EPS Next 2Y3.19%
EPS Next 3Y4.98%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. LKQ Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.03%, LKQ is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.02, LKQ pays a better dividend. On top of this LKQ pays more dividend than 95.45% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, LKQ pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.03%

5.2 History

  • LKQ has been paying a dividend for over 5 years, so it has already some track record.
  • LKQ has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
LKQ Yearly Dividends per shareLKQ Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 51.07% of the earnings are spent on dividend by LKQ. This is a bit on the high side, but may be sustainable.
DP51.07%
EPS Next 2Y3.19%
EPS Next 3Y4.98%
LKQ Yearly Income VS Free CF VS DividendLKQ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
LKQ Dividend Payout.LKQ Dividend Payout, showing the Payout Ratio.LKQ Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

LKQ Fundamentals: All Metrics, Ratios and Statistics

LKQ CORP

NASDAQ:LKQ (3/17/2026, 8:00:02 PM)

After market: 29.35 0 (0%)

29.35

+0.63 (+2.19%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)02-19
Earnings (Next)04-30
Inst Owners109.25%
Inst Owner Change-1.5%
Ins Owners0.44%
Ins Owner Change5.43%
Market Cap7.49B
Revenue(TTM)13.92B
Net Income(TTM)607.00M
Analysts81.33
Price Target41.97 (43%)
Short Float %4.15%
Short Ratio4.06
Dividend
Industry RankSector Rank
Dividend Yield 4.03%
Yearly Dividend1.21
Dividend Growth(5Y)N/A
DP51.07%
Div Incr Years3
Div Non Decr Years3
Ex-Date03-12
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.24%
Min EPS beat(2)-10.64%
Max EPS beat(2)10.16%
EPS beat(4)2
Avg EPS beat(4)-1.66%
Min EPS beat(4)-10.64%
Max EPS beat(4)10.16%
EPS beat(8)3
Avg EPS beat(8)-2.77%
EPS beat(12)5
Avg EPS beat(12)-1.39%
EPS beat(16)7
Avg EPS beat(16)-0.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)0.79%
Revenue beat(4)1
Avg Revenue beat(4)-1.48%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)0.79%
Revenue beat(8)1
Avg Revenue beat(8)-2.28%
Revenue beat(12)3
Avg Revenue beat(12)-1.54%
Revenue beat(16)4
Avg Revenue beat(16)-1.75%
PT rev (1m)-1.94%
PT rev (3m)-2.91%
EPS NQ rev (1m)-9.57%
EPS NQ rev (3m)-14.11%
EPS NY rev (1m)-6.65%
EPS NY rev (3m)-7.54%
Revenue NQ rev (1m)-2.06%
Revenue NQ rev (3m)-3.57%
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)-1.73%
Valuation
Industry RankSector Rank
PE 9.5
Fwd PE 9.57
P/S 0.54
P/FCF 8.84
P/OCF 7.04
P/B 1.15
P/tB 146.82
EV/EBITDA 6.94
EPS(TTM)3.09
EY10.53%
EPS(NY)3.07
Fwd EY10.44%
FCF(TTM)3.32
FCFY11.31%
OCF(TTM)4.17
OCFY14.2%
SpS54.54
BVpS25.62
TBVpS0.2
PEG (NY)N/A
PEG (5Y)2.38
Graham Number42.21
Profitability
Industry RankSector Rank
ROA 4.01%
ROE 9.29%
ROCE 9.33%
ROIC 6.81%
ROICexc 6.99%
ROICexgc 15.73%
OM 8.05%
PM (TTM) 4.36%
GM 38.7%
FCFM 6.09%
ROA(3y)4.94%
ROA(5y)6.61%
ROE(3y)11.98%
ROE(5y)15.18%
ROIC(3y)7.69%
ROIC(5y)8.85%
ROICexc(3y)7.87%
ROICexc(5y)9.09%
ROICexgc(3y)18.52%
ROICexgc(5y)20.24%
ROCE(3y)10.54%
ROCE(5y)12.14%
ROICexgc growth 3Y-13.14%
ROICexgc growth 5Y-1.58%
ROICexc growth 3Y-15.08%
ROICexc growth 5Y-2.36%
OM growth 3Y-10.94%
OM growth 5Y-2.57%
PM growth 3Y-20.89%
PM growth 5Y-4.12%
GM growth 3Y-1.88%
GM growth 5Y-0.47%
F-Score5
Asset Turnover0.92
Health
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 4.32
Debt/EBITDA 2.36
Cap/Depr 51.67%
Cap/Sales 1.55%
Interest Coverage 4.87
Cash Conversion 69.12%
Profit Quality 139.54%
Current Ratio 1.67
Quick Ratio 0.58
Altman-Z 2.58
F-Score5
WACC8.52%
ROIC/WACC0.8
Cap/Depr(3y)80.17%
Cap/Depr(5y)85.59%
Cap/Sales(3y)2.18%
Cap/Sales(5y)2.1%
Profit Quality(3y)121.19%
Profit Quality(5y)110.28%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.21%
EPS 3Y-6.99%
EPS 5Y4%
EPS Q2Q%-26.25%
EPS Next Y-0.8%
EPS Next 2Y3.19%
EPS Next 3Y4.98%
EPS Next 5Y9.56%
Revenue 1Y (TTM)-3.06%
Revenue growth 3Y2.18%
Revenue growth 5Y3.26%
Sales Q2Q%-1.34%
Revenue Next Year0.03%
Revenue Next 2Y0.83%
Revenue Next 3Y0.76%
Revenue Next 5Y3.69%
EBIT growth 1Y-16.98%
EBIT growth 3Y-8.99%
EBIT growth 5Y0.6%
EBIT Next Year26.36%
EBIT Next 3Y10.12%
EBIT Next 5Y11.09%
FCF growth 1Y4.57%
FCF growth 3Y-6.25%
FCF growth 5Y-7.8%
OCF growth 1Y-5.17%
OCF growth 3Y-5.26%
OCF growth 5Y-5.94%

LKQ CORP / LKQ Fundamental Analysis FAQ

What is the ChartMill fundamental rating of LKQ CORP (LKQ) stock?

ChartMill assigns a fundamental rating of 5 / 10 to LKQ.


What is the valuation status for LKQ stock?

ChartMill assigns a valuation rating of 7 / 10 to LKQ CORP (LKQ). This can be considered as Undervalued.


What is the profitability of LKQ stock?

LKQ CORP (LKQ) has a profitability rating of 6 / 10.


How financially healthy is LKQ CORP?

The financial health rating of LKQ CORP (LKQ) is 4 / 10.


How sustainable is the dividend of LKQ CORP (LKQ) stock?

The dividend rating of LKQ CORP (LKQ) is 6 / 10 and the dividend payout ratio is 51.07%.