34.035 USD
-0.09 (-0.25%)
34.035 USD
0 (0%)
LKQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 industry peers in the Distributors industry. While LKQ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LKQ has a bad growth rate and is valued cheaply. This makes LKQ very considerable for value investing!
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.
- In the past 5 years LKQ has always been profitable.
- Each year in the past 5 years LKQ had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 4.47%, LKQ is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- The Return On Equity of LKQ (10.63%) is better than 66.67% of its industry peers.
- LKQ has a Return On Invested Capital of 7.40%. This is comparable to the rest of the industry: LKQ outperforms 57.14% of its industry peers.
- LKQ had an Average Return On Invested Capital over the past 3 years of 9.30%. This is significantly below the industry average of 15.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 10.63% | ||
| ROIC | 7.4% |
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
- Looking at the Profit Margin, with a value of 4.99%, LKQ is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
- In the last couple of years the Profit Margin of LKQ has grown nicely.
- LKQ's Operating Margin of 8.69% is fine compared to the rest of the industry. LKQ outperforms 76.19% of its industry peers.
- In the last couple of years the Operating Margin of LKQ has grown nicely.
- Looking at the Gross Margin, with a value of 39.07%, LKQ belongs to the top of the industry, outperforming 90.48% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.69% | ||
| PM (TTM) | 4.99% | ||
| GM | 39.07% |
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 just above the Cost of Capital (WACC), so LKQ is still creating some value.
- LKQ has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, LKQ has less shares outstanding
- Compared to 1 year ago, LKQ has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.61 indicates that LKQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of LKQ (2.61) is comparable to the rest of the industry.
- LKQ has a debt to FCF ratio of 5.75. This is a neutral value as LKQ would need 5.75 years to pay back of all of its debts.
- The Debt to FCF ratio of LKQ (5.75) is better than 61.90% of its industry peers.
- LKQ has a Debt/Equity ratio of 0.55. This is a neutral value indicating LKQ is somewhat dependend on debt financing.
- LKQ has a Debt to Equity ratio (0.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.75 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.81
WACC9.09%
2.3 Liquidity
- A Current Ratio of 1.60 indicates that LKQ should not have too much problems paying its short term obligations.
- The Current ratio of LKQ (1.60) is comparable to the rest of the industry.
- A Quick Ratio of 0.67 indicates that LKQ may have some problems paying its short term obligations.
- LKQ has a Quick ratio of 0.67. This is in the lower half of the industry: LKQ underperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- LKQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.25%.
- LKQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.08% yearly.
- LKQ shows a decrease in Revenue. In the last year, the revenue decreased by -3.71%.
- Measured over the past years, LKQ shows a small growth in Revenue. The Revenue has been growing by 2.80% on average per year.
EPS 1Y (TTM)-6.25%
EPS 3Y-4.22%
EPS 5Y8.08%
EPS Q2Q%-4.55%
Revenue 1Y (TTM)-3.71%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-2.37%
3.2 Future
- Based on estimates for the next years, LKQ will show a small growth in Earnings Per Share. The EPS will grow by 6.68% on average per year.
- Based on estimates for the next years, LKQ will show a small growth in Revenue. The Revenue will grow by 2.24% on average per year.
EPS Next Y-9.77%
EPS Next 2Y-2.63%
EPS Next 3Y-0.74%
EPS Next 5Y6.68%
Revenue Next Year-4.45%
Revenue Next 2Y-1.88%
Revenue Next 3Y-1.51%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.31, the valuation of LKQ can be described as reasonable.
- Based on the Price/Earnings ratio, LKQ is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. LKQ is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 10.32, the valuation of LKQ can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LKQ indicates a rather cheap valuation: LKQ is cheaper than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, LKQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LKQ is valued cheaper than 85.71% of the companies in the same industry.
- 66.67% of the companies in the same industry are more expensive than LKQ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.07 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
- The decent profitability rating of LKQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.28
EPS Next 2Y-2.63%
EPS Next 3Y-0.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.52%, LKQ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.93, LKQ pays a better dividend. On top of this LKQ pays more dividend than 95.24% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, LKQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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 44.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.76%
EPS Next 2Y-2.63%
EPS Next 3Y-0.74%
LKQ CORP / LKQ 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 7 / 10.
How financially healthy is LKQ CORP?
The financial health rating of LKQ CORP (LKQ) is 5 / 10.
How sustainable is the dividend of LKQ CORP (LKQ) stock?
The dividend rating of LKQ CORP (LKQ) is 5 / 10 and the dividend payout ratio is 44.76%.