34.035 USD
-0.09 (-0.25%)
34.035 USD
0 (0%)
Overall LKQ gets a fundamental rating of 5 out of 10. We evaluated LKQ against 22 industry peers in the Distributors industry. While LKQ has a great profitability rating, there are some minor concerns on its financial health. LKQ is cheap, but on the other hand it scores bad 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.
- 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
- With a decent Return On Assets value of 4.47%, LKQ is doing good in the industry, outperforming 68.18% of the companies in the same industry.
- The Return On Equity of LKQ (10.63%) is better than 68.18% of its industry peers.
- LKQ's Return On Invested Capital of 7.40% is in line compared to the rest of the industry. LKQ outperforms 59.09% 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 14.50%.
| 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
- LKQ's Profit Margin of 4.99% is fine compared to the rest of the industry. LKQ outperforms 77.27% of its industry peers.
- In the last couple of years the Profit Margin of LKQ has grown nicely.
- With a decent Operating Margin value of 8.69%, LKQ is doing good in the industry, outperforming 77.27% of the companies in the same industry.
- In the last couple of years the Operating Margin of LKQ has grown nicely.
- LKQ has a better Gross Margin (39.07%) than 90.91% 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 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.
- 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
- LKQ has an Altman-Z score of 2.61. 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 has a Altman-Z score of 2.61. This is comparable to the rest of the industry: LKQ outperforms 45.45% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 5.75, LKQ is in line with its industry, outperforming 59.09% of the companies in the same industry.
- A Debt/Equity ratio of 0.55 indicates that LKQ is somewhat dependend on debt financing.
- The Debt to Equity ratio of LKQ (0.55) is comparable to the rest of the industry.
| 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.
- LKQ has a Quick Ratio of 1.60. 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 of 0.67. This is comparable to the rest of the industry: LKQ outperforms 40.91% 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%.
- LKQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.80% yearly.
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.
- LKQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.24% yearly.
EPS Next Y-9.99%
EPS Next 2Y-3.21%
EPS Next 3Y-1.13%
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
- The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 10.31, which indicates a very decent valuation of LKQ.
- Based on the Price/Earnings ratio, LKQ is valued cheaper than 90.91% of the companies in the same industry.
- LKQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 10.44 indicates a reasonable valuation of LKQ.
- Based on the Price/Forward Earnings ratio, LKQ is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. LKQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LKQ is valued cheaper than 86.36% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LKQ is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.07 | ||
| EV/EBITDA | 7.71 |
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-3.21%
EPS Next 3Y-1.13%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.52%, 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 0.97. LKQ pays more dividend than 95.45% of the companies in the same industry.
- LKQ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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-3.21%
EPS Next 3Y-1.13%
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%.