LKQ CORP (LKQ) Stock Fundamental Analysis
USA - NASDAQ:LKQ - US5018892084 - Common Stock
30.425 USD
-1.53 (-4.8%)
30.425 USD
0 (0%)
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 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.
In the past year LKQ had a positive cash flow from operations.
Each year in the past 5 years LKQ has been profitable.
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 69.57% 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.
With a Return On Invested Capital value of 7.40%, LKQ perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
LKQ had an Average Return On Invested Capital over the past 3 years of 9.30%. This is significantly below the industry average of 14.79%.
| 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.
LKQ's Operating Margin of 8.69% is fine compared to the rest of the industry. LKQ outperforms 78.26% of its industry peers.
In the last couple of years the Operating Margin of LKQ has grown nicely.
LKQ's Gross Margin of 39.07% is amongst the best of the industry. LKQ outperforms 82.61% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LKQ is destroying value.
Compared to 1 year ago, LKQ has less shares outstanding
LKQ has less shares outstanding than it did 5 years ago.
LKQ has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.58 indicates that LKQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
LKQ has a Altman-Z score (2.58) 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.
LKQ has a better Debt to FCF ratio (5.75) than 69.57% 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.
Looking at the Debt to Equity ratio, with a value of 0.55, LKQ is in line with its industry, outperforming 47.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.75 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.78
WACC9.51%
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 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 (0.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
LKQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.25%.
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
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-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
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
The Price/Earnings ratio is 9.22, which indicates a very decent valuation of LKQ.
Based on the Price/Earnings ratio, LKQ is valued cheaper than 86.96% of the companies in the same industry.
LKQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
The Price/Forward Earnings ratio is 8.95, which indicates a very decent valuation of LKQ.
Based on the Price/Forward Earnings ratio, LKQ is valued cheaper than 95.65% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, LKQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
82.61% 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 the industry average as 65.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.84 | ||
| EV/EBITDA | 7.41 |
4.3 Compensation for Growth
The decent profitability rating of LKQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y-1.18%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.75%, LKQ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.32, 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 2.38, LKQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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-1.18%
EPS Next 3Y2.26%
30.425
-1.53 (-4.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners107.71%
Inst Owner Change-2.13%
Ins Owners0.35%
Ins Owner Change1.44%
Market Cap7.83B
Revenue(TTM)13.96B
Net Income(TTM)697.00M
Analysts81.54
Price Target45.31 (48.92%)
Short Float %3.81%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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)3.78%
PT rev (3m)-16.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 8.95 | ||
| P/S | 0.56 | ||
| P/FCF | 10.84 | ||
| P/OCF | 8.09 | ||
| P/B | 1.19 | ||
| P/tB | 1118.29 | ||
| EV/EBITDA | 7.41 |
EPS(TTM)3.3
EY10.85%
EPS(NY)3.4
Fwd EY11.17%
FCF(TTM)2.81
FCFY9.22%
OCF(TTM)3.76
OCFY12.37%
SpS54.26
BVpS25.47
TBVpS0.03
PEG (NY)N/A
PEG (5Y)1.14
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 | 2.58 |
F-Score5
WACC9.51%
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%.