29.58 USD
-0.17 (-0.57%)
29.58 USD
0 (0%)
Overall LKQ gets a fundamental rating of 6 out of 10. We evaluated LKQ against 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. These ratings would make LKQ suitable 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.
Each year in the past 5 years LKQ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LKQ (4.47%) is better than 69.57% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 7.40%, LKQ is in line with its industry, 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 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.
With a decent Operating Margin value of 8.69%, LKQ is doing good in 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.
LKQ's Gross Margin of 39.07% is amongst the best of the industry. LKQ outperforms 82.61% of its industry peers.
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
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.
LKQ has a Altman-Z score of 2.54. This is comparable to the rest of the industry: LKQ outperforms 47.83% of 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.
The Debt to FCF ratio of LKQ (5.75) is better than 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 | 2.54 |
ROIC/WACC0.8
WACC9.3%
2.3 Liquidity
A Current Ratio of 1.60 indicates that LKQ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.60, LKQ perfoms like the industry average, outperforming 52.17% of the companies in the same 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 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.
LKQ shows a decrease in Revenue. In the last year, the revenue decreased by -3.71%.
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
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
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
With a Price/Earnings ratio of 8.96, the valuation of LKQ can be described as very reasonable.
Based on the Price/Earnings ratio, LKQ is valued cheaper than 91.30% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. LKQ is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.70, which indicates a very decent valuation of LKQ.
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 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 8.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LKQ is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
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 | 10.54 | ||
| EV/EBITDA | 7.03 |
4.3 Compensation for Growth
The decent profitability rating of LKQ 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
With a Yearly Dividend Yield of 4.17%, LKQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.53, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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%
29.58
-0.17 (-0.57%)
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 Cap7.61B
Revenue(TTM)13.96B
Net Income(TTM)697.00M
Analysts81.54
Price Target44.82 (51.52%)
Short Float %4.31%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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)-7.39%
EPS NQ rev (3m)-11.89%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)-2.7%
Revenue NQ rev (1m)-2.24%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 8.7 | ||
| P/S | 0.55 | ||
| P/FCF | 10.54 | ||
| P/OCF | 7.86 | ||
| P/B | 1.16 | ||
| P/tB | 1087.23 | ||
| EV/EBITDA | 7.03 |
EPS(TTM)3.3
EY11.16%
EPS(NY)3.4
Fwd EY11.49%
FCF(TTM)2.81
FCFY9.49%
OCF(TTM)3.76
OCFY12.72%
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
WACC9.3%
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 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 -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%.