33.4 USD
+0.4 (+1.21%)
33.3 USD
-0.1 (-0.3%)
Overall LKQ gets a fundamental rating of 5 out of 10. We evaluated LKQ against 21 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.
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.
In the past 5 years LKQ has always been profitable.
LKQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.47%, LKQ is doing good in the industry, outperforming 66.67% 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 66.67% 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 57.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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 76.19% 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 76.19% of its industry peers.
LKQ's Operating Margin has improved in the last couple of years.
LKQ's Gross Margin of 39.07% is amongst the best of the industry. LKQ outperforms 90.48% 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
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.
Compared to 5 years ago, LKQ has less shares outstanding
The debt/assets ratio for LKQ has been reduced compared to a year ago.
2.2 Solvency
LKQ has an Altman-Z score of 2.59. 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 (2.59) which is in line with 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.
With a decent Debt to FCF ratio value of 5.75, LKQ is doing good in the industry, outperforming 61.90% of the companies in the same industry.
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 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.75 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.79
WACC9.35%
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.
With a Current ratio value of 1.60, LKQ perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
LKQ has a Quick Ratio of 1.60. This is a bad value and indicates that LKQ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LKQ (0.67) is worse than 61.90% 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%.
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
LKQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.68% yearly.
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-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.
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 10.12, which indicates a very decent valuation of LKQ.
LKQ's Price/Earnings ratio is rather cheap when compared to the industry. LKQ is cheaper than 90.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of LKQ to the average of the S&P500 Index (27.19), we can say LKQ is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.12, the valuation of LKQ can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LKQ indicates a rather cheap valuation: LKQ is cheaper than 100.00% of the companies listed in the same industry.
LKQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
85.71% 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 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.84 | ||
| EV/EBITDA | 7.55 |
4.3 Compensation for Growth
The decent profitability rating of LKQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y-2.63%
EPS Next 3Y-0.74%
5. Dividend
5.1 Amount
LKQ has a Yearly Dividend Yield of 3.97%. Purely for dividend investing, there may be better candidates out there.
LKQ's Dividend Yield is rather good when compared to the industry average which is at 1.05. LKQ pays more dividend than 95.24% of the companies in the same industry.
LKQ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| 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%
33.4
+0.4 (+1.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners106.3%
Inst Owner Change0%
Ins Owners0.35%
Ins Owner Change0.56%
Market Cap8.55B
Revenue(TTM)13.96B
Net Income(TTM)697.00M
Analysts80
Price Target41.78 (25.09%)
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)-5.41%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)-6.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 10.12 | ||
| P/S | 0.61 | ||
| P/FCF | 11.84 | ||
| P/OCF | 8.83 | ||
| P/B | 1.3 | ||
| P/tB | 1221.34 | ||
| EV/EBITDA | 7.55 |
EPS(TTM)3.3
EY9.88%
EPS(NY)3.3
Fwd EY9.88%
FCF(TTM)2.82
FCFY8.45%
OCF(TTM)3.78
OCFY11.32%
SpS54.54
BVpS25.6
TBVpS0.03
PEG (NY)N/A
PEG (5Y)1.25
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 | 2.59 |
F-Score5
WACC9.35%
ROIC/WACC0.79
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 4 / 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%.