LKQ CORP (LKQ) Stock Fundamental Analysis
USA - NASDAQ:LKQ - US5018892084 - Common Stock
30.68 USD
-0.45 (-1.45%)
30.72 USD
+0.04 (+0.13%)
Taking everything into account, LKQ scores 5 out of 10 in our fundamental rating. LKQ was compared to 22 industry peers in the Distributors industry. While LKQ has a great profitability rating, there are quite some concerns on its financial health. LKQ has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
LKQ had positive earnings in the past year.
LKQ had a positive operating cash flow in the past year.
Each year in the past 5 years LKQ has been profitable.
LKQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LKQ (4.44%) is better than 68.18% of its industry peers.
The Return On Equity of LKQ (10.86%) is better than 63.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.13%, LKQ is in line with its industry, outperforming 54.55% of the companies in the same industry.
LKQ had an Average Return On Invested Capital over the past 3 years of 9.30%. This is significantly below the industry average of 15.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 10.86% | ||
| ROIC | 7.13% |
ROA(3y)6.79%
ROA(5y)6.84%
ROE(3y)15.91%
ROE(5y)15.58%
ROIC(3y)9.3%
ROIC(5y)9.18%
1.3 Margins
LKQ's Profit Margin of 5.04% is fine compared to the rest of the industry. LKQ outperforms 72.73% of its industry peers.
LKQ's Profit Margin has improved in the last couple of years.
LKQ's Operating Margin of 8.94% is fine compared to the rest of the industry. LKQ outperforms 77.27% of its industry peers.
In the last couple of years the Operating Margin of LKQ has grown nicely.
LKQ's Gross Margin of 39.21% is amongst the best of the industry. LKQ outperforms 81.82% of its industry peers.
LKQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.94% | ||
| PM (TTM) | 5.04% | ||
| GM | 39.21% |
OM growth 3Y-6.3%
OM growth 5Y3.68%
PM growth 3Y-16.76%
PM growth 5Y2.13%
GM growth 3Y-1.22%
GM growth 5Y0.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LKQ is destroying value.
Compared to 1 year ago, LKQ has less shares outstanding
Compared to 5 years ago, LKQ has less shares outstanding
LKQ has a better debt/assets ratio than last year.
2.2 Solvency
LKQ has an Altman-Z score of 2.53. This is not the best score and indicates that LKQ is in the grey zone with still only limited risk for bankruptcy at the moment.
LKQ has a Altman-Z score of 2.53. This is in the lower half of the industry: LKQ underperforms 68.18% of its industry peers.
The Debt to FCF ratio of LKQ is 6.55, which is on the high side as it means it would take LKQ, 6.55 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.55, LKQ perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that LKQ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, LKQ is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.55 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.74
WACC9.6%
2.3 Liquidity
LKQ has a Current Ratio of 1.81. This is a normal value and indicates that LKQ is financially healthy and should not expect problems in meeting its short term obligations.
LKQ has a Current ratio (1.81) which is comparable to the rest of the industry.
A Quick Ratio of 0.69 indicates that LKQ may have some problems paying its short term obligations.
LKQ has a worse Quick ratio (0.69) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
LKQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.57%.
LKQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.08% yearly.
Looking at the last year, LKQ shows a decrease in Revenue. The Revenue has decreased by -3.02% in the last year.
The Revenue has been growing slightly by 2.80% on average over the past years.
EPS 1Y (TTM)-4.57%
EPS 3Y-4.22%
EPS 5Y8.08%
EPS Q2Q%-11.22%
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-1.86%
3.2 Future
LKQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.68% yearly.
LKQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.24% yearly.
EPS Next Y-7.58%
EPS Next 2Y0.5%
EPS Next 3Y3.99%
EPS Next 5Y6.68%
Revenue Next Year-2.79%
Revenue Next 2Y0.04%
Revenue Next 3Y0.83%
Revenue Next 5Y2.24%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.19, the valuation of LKQ can be described as reasonable.
Based on the Price/Earnings ratio, LKQ is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.38, LKQ is valued rather cheaply.
LKQ is valuated reasonably with a Price/Forward Earnings ratio of 8.73.
95.45% of the companies in the same industry are more expensive than LKQ, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.86. LKQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
LKQ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LKQ is cheaper than 86.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LKQ is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.68 | ||
| EV/EBITDA | 7.29 |
4.3 Compensation for Growth
The decent profitability rating of LKQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y0.5%
EPS Next 3Y3.99%
5. Dividend
5.1 Amount
LKQ has a Yearly Dividend Yield of 3.65%.
Compared to an average industry Dividend Yield of 2.93, LKQ pays a better dividend. On top of this LKQ pays more dividend than 95.45% of the companies listed in the same industry.
LKQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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
5.3 Sustainability
LKQ pays out 44.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.21%
EPS Next 2Y0.5%
EPS Next 3Y3.99%
30.68
-0.45 (-1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners107.14%
Inst Owner Change3.39%
Ins Owners0.38%
Ins Owner Change0.99%
Market Cap7.89B
Analysts80
Price Target43.66 (42.31%)
Short Float %3.36%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Yearly Dividend1.21
Dividend Growth(5Y)N/A
DP44.21%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.08%
Min EPS beat(2)-6.63%
Max EPS beat(2)0.47%
EPS beat(4)2
Avg EPS beat(4)-0.33%
Min EPS beat(4)-6.63%
Max EPS beat(4)6.61%
EPS beat(8)3
Avg EPS beat(8)-2.94%
EPS beat(12)4
Avg EPS beat(12)-2.19%
EPS beat(16)8
Avg EPS beat(16)0.94%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-1.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.01%
Revenue beat(8)1
Avg Revenue beat(8)-2.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.91%
Revenue beat(16)4
Avg Revenue beat(16)-1.55%
PT rev (1m)-4.95%
PT rev (3m)-19.42%
EPS NQ rev (1m)-6.6%
EPS NQ rev (3m)-19.54%
EPS NY rev (1m)-9.63%
EPS NY rev (3m)-9.27%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.56 | ||
| P/FCF | 11.68 | ||
| P/OCF | 8.33 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.29 |
EPS(TTM)3.34
EY10.89%
EPS(NY)3.51
Fwd EY11.46%
FCF(TTM)2.63
FCFY8.56%
OCF(TTM)3.68
OCFY12.01%
SpS54.59
BVpS25.33
TBVpS-1.5
PEG (NY)N/A
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 10.86% | ||
| ROCE | 9.71% | ||
| ROIC | 7.13% | ||
| ROICexc | 7.29% | ||
| ROICexgc | 16.06% | ||
| OM | 8.94% | ||
| PM (TTM) | 5.04% | ||
| GM | 39.21% | ||
| FCFM | 4.81% |
ROA(3y)6.79%
ROA(5y)6.84%
ROE(3y)15.91%
ROE(5y)15.58%
ROIC(3y)9.3%
ROIC(5y)9.18%
ROICexc(3y)9.54%
ROICexc(5y)9.42%
ROICexgc(3y)21.74%
ROICexgc(5y)20.87%
ROCE(3y)12.68%
ROCE(5y)12.51%
ROICexcg growth 3Y-5.75%
ROICexcg growth 5Y4.73%
ROICexc growth 3Y-8.2%
ROICexc growth 5Y3.17%
OM growth 3Y-6.3%
OM growth 5Y3.68%
PM growth 3Y-16.76%
PM growth 5Y2.13%
GM growth 3Y-1.22%
GM growth 5Y0.2%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.55 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 66.18% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 5.13 | ||
| Cash Conversion | 56.87% | ||
| Profit Quality | 95.48% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.53 |
F-Score6
WACC9.6%
ROIC/WACC0.74
Cap/Depr(3y)90.97%
Cap/Depr(5y)86.79%
Cap/Sales(3y)2.16%
Cap/Sales(5y)2.04%
Profit Quality(3y)104.5%
Profit Quality(5y)122.23%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.57%
EPS 3Y-4.22%
EPS 5Y8.08%
EPS Q2Q%-11.22%
EPS Next Y-7.58%
EPS Next 2Y0.5%
EPS Next 3Y3.99%
EPS Next 5Y6.68%
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-1.86%
Revenue Next Year-2.79%
Revenue Next 2Y0.04%
Revenue Next 3Y0.83%
Revenue Next 5Y2.24%
EBIT growth 1Y-6.06%
EBIT growth 3Y-3.37%
EBIT growth 5Y6.58%
EBIT Next Year18.81%
EBIT Next 3Y8.27%
EBIT Next 5Y7.5%
FCF growth 1Y-29.36%
FCF growth 3Y-8.96%
FCF growth 5Y0.29%
OCF growth 1Y-22.04%
OCF growth 3Y-6.4%
OCF growth 5Y1.05%