LKQ CORP (LKQ) Stock Fundamental Analysis
NASDAQ:LKQ - Nasdaq - US5018892084 - Common Stock - Currency: USD
Overall LKQ gets a fundamental rating of 4 out of 10. We evaluated LKQ against 19 industry peers in the Distributors industry. There are concerns on the financial health of LKQ while its profitability can be described as average. LKQ is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LKQ had positive earnings in the past year.
In the past year LKQ had a positive cash flow from operations.
In the past 5 years LKQ has always been profitable.
LKQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.53%, LKQ is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
LKQ has a Return On Equity (11.35%) which is comparable to the rest of the industry.
The Return On Invested Capital of LKQ (8.10%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for LKQ is significantly below the industry average of 18.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 11.35% | ||
| ROIC | 8.1% |
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 4.97%, LKQ is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
LKQ's Profit Margin has improved in the last couple of years.
LKQ has a Operating Margin of 9.35%. This is in the better half of the industry: LKQ outperforms 78.95% of its industry peers.
LKQ's Operating Margin has improved in the last couple of years.
LKQ has a Gross Margin of 39.27%. This is in the better half of the industry: LKQ outperforms 78.95% of its industry peers.
LKQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.35% | ||
| PM (TTM) | 4.97% | ||
| GM | 39.27% |
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
LKQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, LKQ has less shares outstanding
LKQ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LKQ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.65 indicates that LKQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
LKQ has a Altman-Z score of 2.65. This is in the lower half of the industry: LKQ underperforms 63.16% of its industry peers.
The Debt to FCF ratio of LKQ is 7.77, which is on the high side as it means it would take LKQ, 7.77 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LKQ (7.77) is comparable to the rest of the industry.
LKQ has a Debt/Equity ratio of 0.62. This is a neutral value indicating LKQ is somewhat dependend on debt financing.
LKQ has a Debt to Equity ratio (0.62) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.01
WACC8.06%
2.3 Liquidity
LKQ has a Current Ratio of 1.52. 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 (1.52) is worse than 63.16% of its industry peers.
LKQ has a Quick Ratio of 1.52. This is a bad value and indicates that LKQ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.56, LKQ is doing worse than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
LKQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.43%.
The Earnings Per Share has been growing by 8.08% on average over the past years. This is quite good.
Looking at the last year, LKQ shows a decrease in Revenue. The Revenue has decreased by -0.74% in the last year.
The Revenue has been growing slightly by 2.80% on average over the past years.
EPS 1Y (TTM)-4.43%
EPS 3Y-4.22%
EPS 5Y8.08%
EPS Q2Q%-3.66%
Revenue 1Y (TTM)-0.74%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-6.48%
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.
The Revenue is expected to grow by 2.24% on average over the next years.
EPS Next Y1.86%
EPS Next 2Y4.59%
EPS Next 3Y4.92%
EPS Next 5Y6.68%
Revenue Next Year-1.46%
Revenue Next 2Y0.74%
Revenue Next 3Y1.24%
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
The Price/Earnings ratio is 11.00, which indicates a very decent valuation of LKQ.
LKQ's Price/Earnings ratio is rather cheap when compared to the industry. LKQ is cheaper than 84.21% of the companies in the same industry.
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 9.97, the valuation of LKQ can be described as very reasonable.
LKQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. LKQ is cheaper than 89.47% of the companies in the same industry.
LKQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 9.97 |
4.2 Price Multiples
LKQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LKQ is cheaper than 78.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LKQ is valued a bit cheaper than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.31 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LKQ may justify a higher PE ratio.
PEG (NY)5.93
PEG (5Y)1.36
EPS Next 2Y4.59%
EPS Next 3Y4.92%
5. Dividend
5.1 Amount
LKQ has a Yearly Dividend Yield of 3.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.65, LKQ pays a better dividend. On top of this LKQ pays more dividend than 89.47% of the companies listed in the same industry.
LKQ's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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
44.94% of the earnings are spent on dividend by LKQ. This is a bit on the high side, but may be sustainable.
DP44.94%
EPS Next 2Y4.59%
EPS Next 3Y4.92%
37.96
+0.95 (+2.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners104.42%
Inst Owner Change0.86%
Ins Owners0.38%
Ins Owner Change-1.03%
Market Cap9.80B
Analysts81.54
Price Target54.18 (42.73%)
Short Float %3.97%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend1.21
Dividend Growth(5Y)N/A
DP44.94%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.54%
Min EPS beat(2)0.47%
Max EPS beat(2)6.61%
EPS beat(4)2
Avg EPS beat(4)-0.13%
Min EPS beat(4)-5.83%
Max EPS beat(4)6.61%
EPS beat(8)3
Avg EPS beat(8)-2.22%
EPS beat(12)5
Avg EPS beat(12)-1.18%
EPS beat(16)9
Avg EPS beat(16)4.46%
Revenue beat(2)0
Avg Revenue beat(2)-2.97%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-2.36%
Revenue beat(4)0
Avg Revenue beat(4)-3.33%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-2.36%
Revenue beat(8)1
Avg Revenue beat(8)-2.19%
Revenue beat(12)2
Avg Revenue beat(12)-2.17%
Revenue beat(16)5
Avg Revenue beat(16)-0.85%
PT rev (1m)-0.32%
PT rev (3m)3.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 9.97 | ||
| P/S | 0.69 | ||
| P/FCF | 17.31 | ||
| P/OCF | 11.33 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.95 |
EPS(TTM)3.45
EY9.09%
EPS(NY)3.81
Fwd EY10.03%
FCF(TTM)2.19
FCFY5.78%
OCF(TTM)3.35
OCFY8.83%
SpS54.68
BVpS23.92
TBVpS-1.94
PEG (NY)5.93
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 11.35% | ||
| ROCE | 11.04% | ||
| ROIC | 8.1% | ||
| ROICexc | 8.26% | ||
| ROICexgc | 19.17% | ||
| OM | 9.35% | ||
| PM (TTM) | 4.97% | ||
| GM | 39.27% | ||
| FCFM | 4.01% |
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-Score5
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 7.77 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 73.65% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 5.34 | ||
| Cash Conversion | 50.12% | ||
| Profit Quality | 80.74% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.65 |
F-Score5
WACC8.06%
ROIC/WACC1.01
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)-4.43%
EPS 3Y-4.22%
EPS 5Y8.08%
EPS Q2Q%-3.66%
EPS Next Y1.86%
EPS Next 2Y4.59%
EPS Next 3Y4.92%
EPS Next 5Y6.68%
Revenue 1Y (TTM)-0.74%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-6.48%
Revenue Next Year-1.46%
Revenue Next 2Y0.74%
Revenue Next 3Y1.24%
Revenue Next 5Y2.24%
EBIT growth 1Y-3.51%
EBIT growth 3Y-3.37%
EBIT growth 5Y6.58%
EBIT Next Year23.83%
EBIT Next 3Y10.47%
EBIT Next 5Y7.5%
FCF growth 1Y-31.89%
FCF growth 3Y-8.96%
FCF growth 5Y0.29%
OCF growth 1Y-18.7%
OCF growth 3Y-6.4%
OCF growth 5Y1.05%