29.69 USD
+0.11 (+0.37%)
29.7 USD
+0.01 (+0.03%)
Taking everything into account, LKQ scores 6 out of 10 in our fundamental rating. LKQ was compared to 23 industry peers in the Distributors industry. While LKQ has a great profitability rating, there are some minor concerns on its financial health. LKQ is valued quite cheap, but it does not seem to be growing. These ratings could make LKQ a good candidate 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.
LKQ had positive earnings in each of the past 5 years.
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's Return On Equity of 10.63% is fine compared to the rest 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.
Measured over the past 3 years, the Average Return On Invested Capital for LKQ is below the industry average of 13.91%.
| 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 78.26% 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 78.26% of its industry peers.
In the last couple of years the Operating Margin of LKQ has grown nicely.
LKQ has a better Gross Margin (39.07%) than 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
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.
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 2.53. 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 (2.53) which is in line with its industry peers.
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's Debt to FCF ratio of 5.75 is fine compared to the rest 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 | 2.53 |
ROIC/WACC0.8
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.60 indicates that LKQ should not have too much problems paying its short term obligations.
LKQ's Current ratio of 1.60 is in line compared to the rest of the industry. LKQ outperforms 52.17% of its industry peers.
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
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.
LKQ shows a decrease in Revenue. In the last year, the revenue decreased by -3.71%.
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
The Earnings Per Share is expected to grow by 6.68% on average over the next years.
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-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.
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 9.00, the valuation of LKQ can be described as reasonable.
Based on the Price/Earnings ratio, LKQ is valued cheaper than 91.30% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, LKQ is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.74, the valuation of LKQ can be described as reasonable.
Based on the Price/Forward Earnings ratio, LKQ is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.56. LKQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 8.74 |
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 82.61% of the companies listed 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 | 10.53 | ||
| EV/EBITDA | 7.03 |
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 4.06%, which is a nice return.
Compared to an average industry Dividend Yield of 3.43, LKQ pays a better dividend. On top of this LKQ pays more dividend than 95.65% of the companies listed in the same industry.
LKQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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%
29.69
+0.11 (+0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners107.71%
Inst Owner Change-2.53%
Ins Owners0.35%
Ins Owner Change0.19%
Market Cap7.60B
Revenue(TTM)13.96B
Net Income(TTM)697.00M
Analysts81.54
Price Target44.82 (50.96%)
Short Float %4.31%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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)1.48%
PT rev (3m)2.99%
EPS NQ rev (1m)-7.67%
EPS NQ rev (3m)-7.67%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)-2.7%
Revenue NQ rev (1m)-2.24%
Revenue NQ rev (3m)-3.02%
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 8.74 | ||
| P/S | 0.54 | ||
| P/FCF | 10.53 | ||
| P/OCF | 7.85 | ||
| P/B | 1.16 | ||
| P/tB | 1085.68 | ||
| EV/EBITDA | 7.03 |
EPS(TTM)3.3
EY11.11%
EPS(NY)3.4
Fwd EY11.45%
FCF(TTM)2.82
FCFY9.5%
OCF(TTM)3.78
OCFY12.74%
SpS54.54
BVpS25.6
TBVpS0.03
PEG (NY)N/A
PEG (5Y)1.11
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 | 2.53 |
F-Score5
WACC9.28%
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-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 6 / 10 and the dividend payout ratio is 44.76%.