29.45 USD
+0.58 (+2.01%)
29.26 USD
-0.19 (-0.65%)
LKQ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 23 industry peers in the Distributors industry. LKQ scores excellent on profitability, but there are some minor concerns on its financial health. LKQ is cheap, but on the other hand it scores bad on growth. This makes LKQ very considerable for value investing!
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.
LKQ had positive earnings in each of the past 5 years.
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 69.57% of the companies in the same industry.
LKQ's Return On Equity of 10.63% is fine compared to the rest of the industry. LKQ outperforms 69.57% 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 56.52% of its industry peers.
LKQ had an Average Return On Invested Capital over the past 3 years of 9.30%. This is below the industry average of 13.91%.
| 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 78.26% of its industry peers.
In the last couple of years the Profit Margin of LKQ has grown nicely.
LKQ has a better Operating Margin (8.69%) than 78.26% of its industry peers.
In the last couple of years the Operating Margin of LKQ has grown nicely.
Looking at the Gross Margin, with a value of 39.07%, LKQ belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
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
LKQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LKQ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LKQ has been reduced compared to 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 2.53. 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 (2.53) which is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 5.75, LKQ is doing good in the industry, outperforming 60.87% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that LKQ is somewhat dependend on debt financing.
LKQ has a Debt to Equity ratio (0.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.75 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.82
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.60 indicates that LKQ should not have too much problems paying its short term obligations.
LKQ has a Current ratio (1.60) which 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's Quick ratio of 0.67 is on the low side compared to the rest of the industry. LKQ is outperformed by 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for LKQ have decreased by -6.25% in the last year.
Measured over the past years, LKQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.08% on average per year.
The Revenue has decreased by -3.71% in the past year.
Measured over the past years, LKQ shows a small growth in Revenue. The Revenue has been growing by 2.80% on average per year.
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
LKQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.68% yearly.
The Revenue is expected to grow by 2.24% on average over the next years.
EPS Next Y-9.77%
EPS Next 2Y-2.39%
EPS Next 3Y-1.13%
EPS Next 5Y6.68%
Revenue Next Year-4.6%
Revenue Next 2Y-1.38%
Revenue Next 3Y-0.19%
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
Based on the Price/Earnings ratio of 8.92, the valuation of LKQ can be described as reasonable.
91.30% of the companies in the same industry are more expensive than LKQ, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LKQ to the average of the S&P500 Index (26.49), we can say LKQ is valued rather cheaply.
The Price/Forward Earnings ratio is 8.88, which indicates a very decent 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.
LKQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
86.96% of the companies in the same industry are more expensive than LKQ, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LKQ is valued a bit cheaper than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.44 | ||
| EV/EBITDA | 6.99 |
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)1.1
EPS Next 2Y-2.39%
EPS Next 3Y-1.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.16%, LKQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.42, LKQ pays a better dividend. On top of this LKQ pays more dividend than 95.65% of the companies listed in the same industry.
LKQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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-2.39%
EPS Next 3Y-1.13%
29.45
+0.58 (+2.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners106.51%
Inst Owner Change-2.52%
Ins Owners0.34%
Ins Owner Change0.19%
Market Cap7.54B
Revenue(TTM)13.96B
Net Income(TTM)697.00M
Analysts80
Price Target43.23 (46.79%)
Short Float %4.86%
Short Ratio4.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend1.21
Dividend Growth(5Y)N/A
DP44.76%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.76%
Min EPS beat(2)-6.63%
Max EPS beat(2)10.16%
EPS beat(4)3
Avg EPS beat(4)2.65%
Min EPS beat(4)-6.63%
Max EPS beat(4)10.16%
EPS beat(8)4
Avg EPS beat(8)-0.26%
EPS beat(12)5
Avg EPS beat(12)-1.34%
EPS beat(16)8
Avg EPS beat(16)0.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)-1.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.27%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.01%
Revenue beat(8)0
Avg Revenue beat(8)-2.56%
Revenue beat(12)2
Avg Revenue beat(12)-1.73%
Revenue beat(16)4
Avg Revenue beat(16)-1.66%
PT rev (1m)-4.59%
PT rev (3m)2.86%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)-7.51%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)-3.02%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 8.88 | ||
| P/S | 0.54 | ||
| P/FCF | 10.44 | ||
| P/OCF | 7.79 | ||
| P/B | 1.15 | ||
| P/tB | 1076.9 | ||
| EV/EBITDA | 6.99 |
EPS(TTM)3.3
EY11.21%
EPS(NY)3.32
Fwd EY11.26%
FCF(TTM)2.82
FCFY9.58%
OCF(TTM)3.78
OCFY12.84%
SpS54.54
BVpS25.6
TBVpS0.03
PEG (NY)N/A
PEG (5Y)1.1
Graham Number43.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 10.63% | ||
| ROCE | 10.09% | ||
| ROIC | 7.4% | ||
| ROICexc | 7.59% | ||
| ROICexgc | 17.17% | ||
| OM | 8.69% | ||
| PM (TTM) | 4.99% | ||
| GM | 39.07% | ||
| FCFM | 5.17% |
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%
ROICexgc growth 3Y-5.75%
ROICexgc 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 Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.75 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 58.85% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 5.05 | ||
| Cash Conversion | 59.35% | ||
| Profit Quality | 103.59% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 2.53 |
F-Score5
WACC9.04%
ROIC/WACC0.82
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)-6.25%
EPS 3Y-4.22%
EPS 5Y8.08%
EPS Q2Q%-4.55%
EPS Next Y-9.77%
EPS Next 2Y-2.39%
EPS Next 3Y-1.13%
EPS Next 5Y6.68%
Revenue 1Y (TTM)-3.71%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-2.37%
Revenue Next Year-4.6%
Revenue Next 2Y-1.38%
Revenue Next 3Y-0.19%
Revenue Next 5Y2.24%
EBIT growth 1Y-9%
EBIT growth 3Y-3.37%
EBIT growth 5Y6.58%
EBIT Next Year14.43%
EBIT Next 3Y6.3%
EBIT Next 5Y7.5%
FCF growth 1Y-32.96%
FCF growth 3Y-8.96%
FCF growth 5Y0.29%
OCF growth 1Y-30.06%
OCF growth 3Y-6.4%
OCF growth 5Y1.05%
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 of LKQ CORP (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.
What is the expected EPS growth for LKQ CORP (LKQ) stock?
The Earnings per Share (EPS) of LKQ CORP (LKQ) is expected to decline by -9.77% in the next year.
Can you provide the dividend sustainability for LKQ stock?
The dividend rating of LKQ CORP (LKQ) is 6 / 10 and the dividend payout ratio is 44.76%.