LKQ CORP (LKQ)
US5018892084 - Common Stock
Overall LKQ gets a fundamental rating of 5 out of 10. We evaluated LKQ against 15 industry peers in the Distributors industry. There are concerns on the financial health of LKQ while its profitability can be described as average. LKQ has a correct valuation and a medium growth rate.
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.
In the past 5 years LKQ always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.60%, LKQ is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
LKQ's Return On Equity of 11.41% is fine compared to the rest of the industry. LKQ outperforms 64.29% of its industry peers.
With a Return On Invested Capital value of 8.01%, LKQ perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LKQ is significantly below the industry average of 16.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 11.41% | ||
| ROIC | 8.01% |
ROA(3y)8.14%
ROA(5y)6.76%
ROE(3y)18.38%
ROE(5y)15.45%
ROIC(3y)10.29%
ROIC(5y)9.09%
1.3 Margins
Looking at the Profit Margin, with a value of 4.90%, LKQ is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
LKQ's Profit Margin has improved in the last couple of years.
The Operating Margin of LKQ (9.19%) is better than 71.43% of its industry peers.
LKQ's Operating Margin has improved in the last couple of years.
LKQ has a Gross Margin of 39.33%. This is in the better half of the industry: LKQ outperforms 78.57% of its industry peers.
LKQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.19% | ||
| PM (TTM) | 4.9% | ||
| GM | 39.33% |
OM growth 3Y4.27%
OM growth 5Y5.2%
PM growth 3Y7.16%
PM growth 5Y10.8%
GM growth 3Y0.62%
GM growth 5Y0.88%
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 about the same amount of shares outstanding.
The number of shares outstanding for LKQ has been reduced compared to 5 years ago.
The debt/assets ratio for LKQ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.69 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 2.69, LKQ perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
LKQ has a debt to FCF ratio of 5.80. This is a neutral value as LKQ would need 5.80 years to pay back of all of its debts.
LKQ has a Debt to FCF ratio of 5.80. This is in the lower half of the industry: LKQ underperforms 64.29% of its industry peers.
LKQ has a Debt/Equity ratio of 0.69. This is a neutral value indicating LKQ is somewhat dependend on debt financing.
The Debt to Equity ratio of LKQ (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.8 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.66
WACC12.07%
2.3 Liquidity
LKQ has a Current Ratio of 1.72. 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 (1.72) which is comparable to the rest of the industry.
LKQ has a Quick Ratio of 1.72. 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 has a Quick ratio (0.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| 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 -6.63%.
LKQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.73% yearly.
The Revenue has grown by 8.48% in the past year. This is quite good.
The Revenue has been growing slightly by 3.15% on average over the past years.
EPS 1Y (TTM)-6.63%
EPS 3Y14.67%
EPS 5Y11.73%
EPS Q2Q%2.33%
Revenue 1Y (TTM)8.48%
Revenue growth 3Y6.04%
Revenue growth 5Y3.15%
Sales Q2Q%0.45%
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 2.92% on average per year.
Based on estimates for the next years, LKQ will show a small growth in Revenue. The Revenue will grow by 2.67% on average per year.
EPS Next Y-9.68%
EPS Next 2Y-2.33%
EPS Next 3Y1.52%
EPS Next 5Y2.92%
Revenue Next Year4.46%
Revenue Next 2Y2.93%
Revenue Next 3Y2.77%
Revenue Next 5Y2.67%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
LKQ is valuated reasonably with a Price/Earnings ratio of 10.44.
Based on the Price/Earnings ratio, LKQ is valued cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.77, LKQ is valued rather cheaply.
The Price/Forward Earnings ratio is 10.06, which indicates a very decent valuation of LKQ.
Based on the Price/Forward Earnings ratio, LKQ is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LKQ to the average of the S&P500 Index (23.38), we can say LKQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 10.06 |
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.
LKQ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.77 | ||
| EV/EBITDA | 7.79 |
4.3 Compensation for Growth
LKQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y-2.33%
EPS Next 3Y1.52%
5. Dividend
5.1 Amount
LKQ has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.92, LKQ pays a better dividend. On top of this LKQ pays more dividend than 92.86% of the companies listed in the same industry.
LKQ's Dividend Yield is a higher than the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
LKQ has been paying a dividend for less than 5 years, so it still needs to build a 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 45.01% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP45.01%
EPS Next 2Y-2.33%
EPS Next 3Y1.52%
LKQ CORP
NASDAQ:LKQ (12/18/2024, 9:31:08 AM)
36.75
+0.14 (+0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.55B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 10.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 11.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.19% | ||
| PM (TTM) | 4.9% | ||
| GM | 39.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-6.63%
EPS 3Y14.67%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.48%
Revenue growth 3Y6.04%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y