LKQ CORP (LKQ) Stock Fundamental Analysis
USA - NASDAQ:LKQ - US5018892084 - Common Stock
29.65 USD
-0.32 (-1.07%)
Taking everything into account, LKQ scores 5 out of 10 in our fundamental rating. LKQ was compared to 23 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.
1. Profitability
1.1 Basic Checks
In the past year LKQ was profitable.
In the past year LKQ had a positive cash flow from operations.
Each year in the past 5 years LKQ has 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 4.47%, LKQ is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
LKQ has a Return On Equity of 10.63%. This is in the better half 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 14.04%.
| 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 has a Profit Margin of 4.99%. This is in the better half of the industry: LKQ outperforms 78.26% of its industry peers.
LKQ's Profit Margin has improved in the last couple of years.
LKQ has a better Operating Margin (8.69%) than 78.26% of its industry peers.
LKQ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.07%, LKQ belongs to the top of the industry, outperforming 82.61% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LKQ is destroying value.
The number of shares outstanding for LKQ has been reduced compared to 1 year ago.
The number of shares outstanding for LKQ has been reduced compared to 5 years ago.
LKQ has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.54 indicates that LKQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
LKQ's Altman-Z score of 2.54 is in line compared 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 65.22% of its industry peers.
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 | 2.54 |
ROIC/WACC0.78
WACC9.44%
2.3 Liquidity
LKQ has a Current Ratio of 1.60. 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 (1.60) which is in line with its industry peers.
A Quick Ratio of 0.67 indicates that LKQ may have some problems paying 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.
Looking at the last year, LKQ shows a decrease in Revenue. The Revenue has decreased by -3.71% in the last year.
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.
The Revenue is expected to grow by 2.24% on average over the next years.
EPS Next Y-10.08%
EPS Next 2Y-1.18%
EPS Next 3Y2.26%
EPS Next 5Y6.68%
Revenue Next Year-4.12%
Revenue Next 2Y-0.74%
Revenue Next 3Y0.83%
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
LKQ is valuated reasonably with a Price/Earnings ratio of 8.98.
Based on the Price/Earnings ratio, LKQ is valued cheaper than 95.65% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, LKQ is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.72, the valuation of LKQ can be described as reasonable.
Based on the Price/Forward Earnings ratio, LKQ is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
LKQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.98 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LKQ indicates a rather cheap valuation: LKQ is cheaper than 86.96% of the companies listed in the same industry.
69.57% of the companies in the same industry are more expensive than LKQ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.57 | ||
| EV/EBITDA | 7.1 |
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)1.11
EPS Next 2Y-1.18%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
LKQ has a Yearly Dividend Yield of 3.83%.
LKQ's Dividend Yield is rather good when compared to the industry average which is at 3.39. LKQ pays more dividend than 95.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, LKQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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-1.18%
EPS Next 3Y2.26%
NASDAQ:LKQ (11/19/2025, 9:41:44 AM)
29.65
-0.32 (-1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners107.71%
Inst Owner Change-2.45%
Ins Owners0.35%
Ins Owner Change0.34%
Market Cap7.63B
Revenue(TTM)13.96B
Net Income(TTM)697.00M
Analysts81.54
Price Target45.31 (52.82%)
Short Float %4.31%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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)2.58%
PT rev (3m)-1.37%
EPS NQ rev (1m)-6.25%
EPS NQ rev (3m)-10.81%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)-12.07%
Revenue NQ rev (1m)-3.1%
Revenue NQ rev (3m)-3.64%
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.98 | ||
| Fwd PE | 8.72 | ||
| P/S | 0.55 | ||
| P/FCF | 10.57 | ||
| P/OCF | 7.88 | ||
| P/B | 1.16 | ||
| P/tB | 1089.81 | ||
| EV/EBITDA | 7.1 |
EPS(TTM)3.3
EY11.13%
EPS(NY)3.4
Fwd EY11.46%
FCF(TTM)2.81
FCFY9.46%
OCF(TTM)3.76
OCFY12.69%
SpS54.26
BVpS25.47
TBVpS0.03
PEG (NY)N/A
PEG (5Y)1.11
Graham Number43.49
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 | 2.54 |
F-Score5
WACC9.44%
ROIC/WACC0.78
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-10.08%
EPS Next 2Y-1.18%
EPS Next 3Y2.26%
EPS Next 5Y6.68%
Revenue 1Y (TTM)-3.71%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-2.37%
Revenue Next Year-4.12%
Revenue Next 2Y-0.74%
Revenue Next 3Y0.83%
Revenue Next 5Y2.24%
EBIT growth 1Y-9%
EBIT growth 3Y-3.37%
EBIT growth 5Y6.58%
EBIT Next Year16.51%
EBIT Next 3Y8.45%
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 -10.08% in the next year.
Can you provide the dividend sustainability for LKQ stock?
The dividend rating of LKQ CORP (LKQ) is 5 / 10 and the dividend payout ratio is 44.76%.