LKQ CORP (LKQ) Fundamental Analysis & Valuation
NASDAQ:LKQ • US5018892084
32.22 USD
-0.56 (-1.71%)
At close: Mar 3, 2026
32.22 USD
0 (0%)
After Hours: 3/3/2026, 8:24:15 PM
This LKQ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall LKQ gets a fundamental rating of 5 out of 10. We evaluated LKQ against 23 industry peers in the Distributors industry. LKQ has an average financial health and profitability rating. LKQ may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- In the past 5 years LKQ always reported a positive cash flow from operatings.
1.2 Ratios
- LKQ has a better Return On Assets (4.01%) than 65.22% of its industry peers.
- LKQ has a better Return On Equity (9.29%) than 69.57% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.81%, LKQ is in the better half of the industry, outperforming 60.87% 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 10.85%.
| 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
- Looking at the Profit Margin, with a value of 4.36%, LKQ is in the better half of 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.
- The Operating Margin of LKQ (8.05%) is better than 78.26% of its industry peers.
- LKQ's Operating Margin has declined in the last couple of years.
- LKQ has a better Gross Margin (38.70%) than 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. 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.
- 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
- An Altman-Z score of 2.64 indicates that LKQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of LKQ (2.64) is comparable to the rest of the industry.
- 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 in line with its industry peers.
- A Debt/Equity ratio of 0.56 indicates that LKQ is somewhat dependend on debt financing.
- LKQ's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. LKQ outperforms 43.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.75
WACC9.09%
2.3 Liquidity
- LKQ has a Current Ratio of 1.67. This is a normal value and indicates that LKQ is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.67, LKQ is in line with its industry, outperforming 43.48% of the companies in the same industry.
- A Quick Ratio of 0.58 indicates that LKQ may have some problems paying its short term obligations.
- LKQ has a worse Quick ratio (0.58) than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.58 |
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.
- 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.
- The Revenue is expected to grow by 3.69% on average over the next years.
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
- 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.
4. LKQ Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.43, the valuation of LKQ can be described as reasonable.
- 95.65% 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 (26.83), we can say LKQ is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 9.81, the valuation of LKQ can be described as reasonable.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.95, LKQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LKQ is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, LKQ is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.74 | ||
| EV/EBITDA | 7.54 |
4.3 Compensation for Growth
- LKQ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of LKQ may justify a higher PE ratio.
- LKQ's earnings are expected to grow with 12.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.66
PEG (5Y)2.61
EPS Next 2Y6.42%
EPS Next 3Y12.71%
5. LKQ Dividend Analysis
5.1 Amount
- LKQ has a Yearly Dividend Yield of 3.68%. Purely for dividend investing, there may be better candidates out there.
- 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
- 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 2Y6.42%
EPS Next 3Y12.71%
LKQ Fundamentals: All Metrics, Ratios and Statistics
32.22
-0.56 (-1.71%)
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 Cap8.25B
Revenue(TTM)13.92B
Net Income(TTM)607.00M
Analysts81.33
Price Target41.97 (30.26%)
Short Float %5.33%
Short Ratio3.45
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 | 10.43 | ||
| Fwd PE | 9.81 | ||
| P/S | 0.59 | ||
| P/FCF | 9.74 | ||
| P/OCF | 7.76 | ||
| P/B | 1.26 | ||
| P/tB | 161.71 | ||
| EV/EBITDA | 7.54 |
EPS(TTM)3.09
EY9.59%
EPS(NY)3.28
Fwd EY10.19%
FCF(TTM)3.31
FCFY10.27%
OCF(TTM)4.15
OCFY12.89%
SpS54.37
BVpS25.54
TBVpS0.2
PEG (NY)1.66
PEG (5Y)2.61
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 | 2.64 |
F-Score5
WACC9.09%
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%.