LKQ CORP (LKQ) Fundamental Analysis & Valuation

NASDAQ:LKQ • US5018892084

Current stock price

29.49 USD
+0.12 (+0.41%)
Last:

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.
  • In the past 5 years LKQ has always 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

  • The Return On Assets of LKQ (4.01%) is better than 66.67% of its industry peers.
  • Looking at the Return On Equity, with a value of 9.29%, LKQ is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 6.81%, LKQ is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for LKQ is below the industry average of 10.32%.
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

  • LKQ's Profit Margin of 4.36% is fine compared to the rest of the industry. LKQ outperforms 75.00% of its industry peers.
  • In the last couple of years the Profit Margin of LKQ has declined.
  • With a decent Operating Margin value of 8.05%, LKQ is doing good in the industry, outperforming 79.17% of the companies in the same industry.
  • In the last couple of years the Operating Margin of LKQ has declined.
  • LKQ has a better Gross Margin (38.70%) than 87.50% of its industry peers.
  • 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

  • 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
  • The debt/assets ratio for LKQ has been reduced compared to a year ago.
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 2.59 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 2.59, LKQ perfoms like the industry average, outperforming 41.67% 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.
  • LKQ has a Debt/Equity ratio of 0.56. This is a neutral value indicating LKQ is somewhat dependend on debt financing.
  • LKQ has a Debt to Equity ratio (0.56) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 4.32
Altman-Z 2.59
ROIC/WACC0.79
WACC8.64%
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

  • A Current Ratio of 1.67 indicates that LKQ should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.67, LKQ is in line with its industry, outperforming 41.67% of the companies in the same industry.
  • LKQ has a Quick Ratio of 1.67. This is a bad value and indicates that LKQ is not financially healthy enough and could expect problems in meeting 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 79.17% 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

  • The earnings per share for LKQ have decreased strongly by -11.21% in the last year.
  • LKQ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.00% yearly.
  • Looking at the last year, LKQ shows a decrease in Revenue. The Revenue has decreased by -3.06% in the last year.
  • Measured over the past years, LKQ shows a small growth in Revenue. The Revenue has been growing by 3.26% on average per year.
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

  • The Price/Earnings ratio is 9.54, which indicates a very decent valuation of LKQ.
  • Compared to the rest of the industry, the Price/Earnings ratio of LKQ indicates a rather cheap valuation: LKQ is cheaper than 95.83% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.35. LKQ is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 9.62, the valuation of LKQ can be described as very reasonable.
  • 100.00% of the companies in the same industry are more expensive than LKQ, based on the Price/Forward Earnings ratio.
  • LKQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.61.
Industry RankSector Rank
PE 9.54
Fwd PE 9.62
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

  • Based on the Enterprise Value to EBITDA ratio, LKQ is valued cheaper than 91.67% 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 79.17% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 8.88
EV/EBITDA 7.05
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)2.39
EPS Next 2Y3.19%
EPS Next 3Y4.98%

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

6

5. LKQ Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.05%, LKQ is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.04, LKQ pays a better dividend. On top of this LKQ pays more dividend than 95.83% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, LKQ pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.05%

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

  • LKQ pays out 51.07% of its income as dividend. 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 (4/1/2026, 11:11:53 AM)

29.49

+0.12 (+0.41%)

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 Cap7.52B
Revenue(TTM)13.92B
Net Income(TTM)607.00M
Analysts81.33
Price Target41.97 (42.32%)
Short Float %4.9%
Short Ratio4.68
Dividend
Industry RankSector Rank
Dividend Yield 4.05%
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)0%
PT rev (3m)0.46%
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)-11.56%
EPS NY rev (1m)-6.65%
EPS NY rev (3m)-7.09%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-3.22%
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-1.64%
Valuation
Industry RankSector Rank
PE 9.54
Fwd PE 9.62
P/S 0.54
P/FCF 8.88
P/OCF 7.08
P/B 1.15
P/tB 147.53
EV/EBITDA 7.05
EPS(TTM)3.09
EY10.48%
EPS(NY)3.07
Fwd EY10.39%
FCF(TTM)3.32
FCFY11.26%
OCF(TTM)4.17
OCFY14.13%
SpS54.54
BVpS25.62
TBVpS0.2
PEG (NY)N/A
PEG (5Y)2.39
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 2.59
F-Score5
WACC8.64%
ROIC/WACC0.79
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.


How profitable is LKQ CORP (LKQ) stock?

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


What is the financial health of LKQ CORP (LKQ) stock?

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


What is the earnings growth outlook for LKQ CORP?

The Earnings per Share (EPS) of LKQ CORP (LKQ) is expected to decline by -0.8% in the next year.