LKQ CORP (LKQ) Stock Fundamental Analysis
NASDAQ:LKQ • US5018892084
32.49 USD
-0.62 (-1.87%)
Last: Mar 2, 2026, 12:34 PM
We assign a fundamental rating of 5 out of 10 to LKQ. LKQ was compared to 23 industry peers in the Distributors industry. Both the profitability and the financial health of LKQ get a neutral evaluation. Nothing too spectacular is happening here. LKQ may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- LKQ had positive earnings in each of the past 5 years.
- In the past 5 years LKQ always reported a positive cash flow from operatings.
1.2 Ratios
- LKQ's Return On Assets of 4.01% is fine compared to the rest of the industry. LKQ outperforms 65.22% of its industry peers.
- LKQ has a better Return On Equity (9.29%) than 69.57% of its industry peers.
- LKQ has a better Return On Invested Capital (6.81%) than 60.87% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LKQ is below the industry average of 10.85%.
| Industry Rank | Sector 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%
1.3 Margins
- With a decent Profit Margin value of 4.36%, LKQ is doing good in the industry, outperforming 73.91% of the companies in the same industry.
- In the last couple of years the Profit Margin of LKQ has declined.
- LKQ has a Operating Margin of 8.05%. This is in the better half of the industry: LKQ outperforms 78.26% of its industry peers.
- LKQ's Operating Margin has declined in the last couple of years.
- LKQ has a Gross Margin of 38.70%. This is amongst the best in the industry. LKQ outperforms 86.96% of its industry peers.
- LKQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- LKQ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- LKQ has less shares outstanding than it did 1 year ago.
- 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 2.66. 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's Altman-Z score of 2.66 is in line compared to the rest of the industry. LKQ outperforms 47.83% of its industry peers.
- The Debt to FCF ratio of LKQ is 4.32, which is a neutral value as it means it would take LKQ, 4.32 years of fcf income to pay off all of its debts.
- LKQ has a Debt to FCF ratio (4.32) which is comparable to the rest of the industry.
- LKQ has a Debt/Equity ratio of 0.56. This is a neutral value indicating LKQ is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.56, LKQ is in line with its industry, outperforming 43.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.75
WACC9.06%
2.3 Liquidity
- A Current Ratio of 1.67 indicates that LKQ should not have too much problems paying its short term obligations.
- LKQ has a Current ratio (1.67) which 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's Quick ratio of 0.58 is on the low side compared to the rest of the industry. LKQ is outperformed by 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- LKQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.21%.
- Measured over the past 5 years, LKQ shows a small growth in Earnings Per Share. The EPS has been growing by 4.00% on average per year.
- Looking at the last year, LKQ shows a decrease in Revenue. The Revenue has decreased by -3.06% in the last year.
- LKQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.26% yearly.
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
- LKQ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.56% yearly.
- 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 Y6.27%
EPS Next 2Y6.42%
EPS Next 3Y12.71%
EPS Next 5Y9.56%
Revenue Next Year1.01%
Revenue Next 2Y0.01%
Revenue Next 3Y4.47%
Revenue Next 5Y3.69%
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 accelerating.
- 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
- A Price/Earnings ratio of 10.51 indicates a reasonable valuation of LKQ.
- Based on the Price/Earnings ratio, LKQ is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.07. LKQ is valued rather cheaply when compared to this.
- LKQ is valuated reasonably with a Price/Forward Earnings ratio of 9.89.
- LKQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. LKQ is cheaper than 95.65% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of LKQ to the average of the S&P500 Index (28.05), we can say LKQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
- LKQ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LKQ is cheaper than 86.96% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LKQ indicates a somewhat cheap valuation: LKQ is cheaper than 69.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.82 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- LKQ has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as LKQ's earnings are expected to grow with 12.71% in the coming years.
PEG (NY)1.68
PEG (5Y)2.63
EPS Next 2Y6.42%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.68%, LKQ has a reasonable but not impressive dividend return.
- LKQ's Dividend Yield is rather good when compared to the industry average which is at 0.95. LKQ pays more dividend than 95.65% of the companies 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 | 3.68% |
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
- 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 2Y6.42%
EPS Next 3Y12.71%
NASDAQ:LKQ (3/2/2026, 12:34:01 PM)
32.49
-0.62 (-1.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)04-30 2026-04-30
Inst Owners106.3%
Inst Owner Change-1.38%
Ins Owners0.35%
Ins Owner Change5.73%
Market Cap8.32B
Revenue(TTM)13.92B
Net Income(TTM)607.00M
Analysts81.33
Price Target41.97 (29.18%)
Short Float %5.48%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend1.21
Dividend Growth(5Y)N/A
DP51.07%
Div Incr Years3
Div Non Decr Years3
Ex-Date03-12 2026-03-12 (0.3)
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)-6.37%
EPS NQ rev (1m)-9.22%
EPS NQ rev (3m)-11.57%
EPS NY rev (1m)0.72%
EPS NY rev (3m)-3.38%
Revenue NQ rev (1m)-1.63%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 9.89 | ||
| P/S | 0.6 | ||
| P/FCF | 9.82 | ||
| P/OCF | 7.82 | ||
| P/B | 1.27 | ||
| P/tB | 163.07 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)3.09
EY9.51%
EPS(NY)3.28
Fwd EY10.11%
FCF(TTM)3.31
FCFY10.18%
OCF(TTM)4.15
OCFY12.78%
SpS54.37
BVpS25.54
TBVpS0.2
PEG (NY)1.68
PEG (5Y)2.63
Graham Number42.14
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.66 |
F-Score5
WACC9.06%
ROIC/WACC0.75
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 Y6.27%
EPS Next 2Y6.42%
EPS Next 3Y12.71%
EPS Next 5Y9.56%
Revenue 1Y (TTM)-3.06%
Revenue growth 3Y2.18%
Revenue growth 5Y3.26%
Sales Q2Q%-1.34%
Revenue Next Year1.01%
Revenue Next 2Y0.01%
Revenue Next 3Y4.47%
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 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 5 / 10 and the dividend payout ratio is 51.07%.