30.2 USD
-0.61 (-1.98%)
30.2 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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LKQ is cheap, but on the other hand it scores bad on growth. These ratings would make LKQ suitable 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.
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
LKQ has a Return On Assets of 4.47%. This is in the better half of the industry: LKQ outperforms 68.18% of its industry peers.
Looking at the Return On Equity, with a value of 10.63%, LKQ is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
LKQ has a Return On Invested Capital (7.40%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for LKQ is significantly below the industry average of 15.42%.
| 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
The Profit Margin of LKQ (4.99%) is better than 77.27% of its industry peers.
In the last couple of years the Profit Margin of LKQ has grown nicely.
LKQ's Operating Margin of 8.69% is fine compared to the rest of the industry. LKQ outperforms 77.27% of its industry peers.
LKQ's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 39.07%, LKQ belongs to the best of the industry, outperforming 86.36% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LKQ is creating some value.
The number of shares outstanding for LKQ has been reduced compared to 1 year ago.
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 2.54. 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.
Looking at the Altman-Z score, with a value of 2.54, LKQ is in line with its industry, outperforming 50.00% of the companies in the same industry.
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 63.64% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that LKQ is somewhat dependend on debt financing.
LKQ's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. LKQ outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.75 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.8
WACC9.23%
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.
A Quick Ratio of 0.67 indicates that LKQ may have some problems paying its short term obligations.
LKQ has a worse Quick ratio (0.67) than 63.64% 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.
LKQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.08% yearly.
Looking at the last year, LKQ shows a decrease in Revenue. The Revenue has decreased by -3.71% in the last 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
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-9.77%
EPS Next 2Y-2.63%
EPS Next 3Y-0.74%
EPS Next 5Y6.68%
Revenue Next Year-4.61%
Revenue Next 2Y-1.42%
Revenue Next 3Y-0.39%
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 9.15, the valuation of LKQ can be described as reasonable.
90.91% 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 (26.51), we can say LKQ is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.15, the valuation of LKQ can be described as very reasonable.
100.00% of the companies in the same industry are more expensive than LKQ, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LKQ to the average of the S&P500 Index (23.13), we can say LKQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.15 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
86.36% of the companies in the same industry are more expensive than LKQ, based on the Enterprise Value to EBITDA ratio.
63.64% 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 | 10.71 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
The decent profitability rating of LKQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y-2.63%
EPS Next 3Y-0.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.97%, 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 1.00. LKQ pays more dividend than 95.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, LKQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
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-2.63%
EPS Next 3Y-0.74%
30.2
-0.61 (-1.98%)
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 Change0.56%
Market Cap7.73B
Revenue(TTM)13.96B
Net Income(TTM)697.00M
Analysts80
Price Target41.78 (38.34%)
Short Float %4.73%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend1.21
Dividend Growth(5Y)N/A
DP44.76%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)-6.8%
PT rev (3m)-4.31%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)-6.69%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.15 | ||
| Fwd PE | 9.15 | ||
| P/S | 0.55 | ||
| P/FCF | 10.71 | ||
| P/OCF | 7.99 | ||
| P/B | 1.18 | ||
| P/tB | 1104.33 | ||
| EV/EBITDA | 7.11 |
EPS(TTM)3.3
EY10.93%
EPS(NY)3.3
Fwd EY10.92%
FCF(TTM)2.82
FCFY9.34%
OCF(TTM)3.78
OCFY12.52%
SpS54.54
BVpS25.6
TBVpS0.03
PEG (NY)N/A
PEG (5Y)1.13
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 | 2.54 |
F-Score5
WACC9.23%
ROIC/WACC0.8
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-2.63%
EPS Next 3Y-0.74%
EPS Next 5Y6.68%
Revenue 1Y (TTM)-3.71%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-2.37%
Revenue Next Year-4.61%
Revenue Next 2Y-1.42%
Revenue Next 3Y-0.39%
Revenue Next 5Y2.24%
EBIT growth 1Y-9%
EBIT growth 3Y-3.37%
EBIT growth 5Y6.58%
EBIT Next Year12.78%
EBIT Next 3Y6.44%
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 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%.