30.99 USD
-0.05 (-0.16%)
31.16 USD
+0.17 (+0.55%)
Overall LKQ gets a fundamental rating of 5 out of 10. We evaluated LKQ against 22 industry peers in the Distributors industry. LKQ scores excellent on profitability, but there are some minor concerns on its financial health. LKQ has a bad growth rate and is valued cheaply. This makes LKQ very considerable for value investing!
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.
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
The Return On Assets of LKQ (4.47%) is better than 65.22% of its industry peers.
With a decent Return On Equity value of 10.63%, LKQ is doing good in the industry, outperforming 69.57% of the companies in the same industry.
LKQ has a Return On Invested Capital (7.40%) which is in line with 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 14.96%.
| 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.
LKQ's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.69%, LKQ is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
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.
LKQ's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, LKQ has less shares outstanding
Compared to 5 years ago, LKQ has less shares outstanding
LKQ has a better debt/assets ratio than last year.
2.2 Solvency
LKQ has an Altman-Z score of 2.56. 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 2.56. This is comparable to the rest of the industry: LKQ outperforms 47.83% of its industry peers.
The Debt to FCF ratio of LKQ is 5.75, which is a neutral value as it means it would take LKQ, 5.75 years of fcf income to pay off all of its debts.
LKQ has a Debt to FCF ratio of 5.75. This is in the better half of the industry: LKQ outperforms 60.87% of its industry peers.
LKQ has a Debt/Equity ratio of 0.55. This is a neutral value indicating LKQ is somewhat dependend on debt financing.
LKQ has a Debt to Equity ratio (0.55) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.75 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.81
WACC9.13%
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.
A Quick Ratio of 0.67 indicates that LKQ may have some problems paying its short term obligations.
LKQ has a Quick ratio of 0.67. This is in the lower half of the industry: LKQ underperforms 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.
The Revenue has been growing slightly by 2.80% on average over the past years.
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.
Based on estimates for the next years, LKQ will show a small growth in Revenue. The Revenue will grow by 2.24% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 9.39, 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 (26.56), we can say LKQ is valued rather cheaply.
LKQ is valuated reasonably with a Price/Forward Earnings ratio of 9.35.
95.65% of the companies in the same industry are more expensive than LKQ, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, LKQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 9.35 |
4.2 Price Multiples
LKQ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LKQ is cheaper than 86.96% of the companies in the same industry.
LKQ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LKQ is cheaper than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.99 | ||
| EV/EBITDA | 7.23 |
4.3 Compensation for Growth
The decent profitability rating of LKQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y-2.39%
EPS Next 3Y-1.13%
5. Dividend
5.1 Amount
LKQ has a Yearly Dividend Yield of 3.87%.
Compared to an average industry Dividend Yield of 0.96, LKQ pays a better dividend. On top of this LKQ pays more dividend than 95.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, LKQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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
44.76% of the earnings are spent on dividend by LKQ. This is a bit on the high side, but may be sustainable.
DP44.76%
EPS Next 2Y-2.39%
EPS Next 3Y-1.13%
30.99
-0.05 (-0.16%)
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 Cap7.93B
Revenue(TTM)13.96B
Net Income(TTM)697.00M
Analysts80
Price Target43.23 (39.5%)
Short Float %4.86%
Short Ratio4.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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)-0.98%
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)-2.24%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 9.35 | ||
| P/S | 0.57 | ||
| P/FCF | 10.99 | ||
| P/OCF | 8.19 | ||
| P/B | 1.21 | ||
| P/tB | 1133.21 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)3.3
EY10.65%
EPS(NY)3.32
Fwd EY10.7%
FCF(TTM)2.82
FCFY9.1%
OCF(TTM)3.78
OCFY12.2%
SpS54.54
BVpS25.6
TBVpS0.03
PEG (NY)N/A
PEG (5Y)1.16
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 | 2.56 |
F-Score5
WACC9.13%
ROIC/WACC0.81
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 6 / 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%.