34.12 USD
+0.33 (+0.98%)
34.12 USD
0 (0%)
LKQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 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.
- 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
- Looking at the Return On Assets, with a value of 4.47%, LKQ is in the better half of the industry, outperforming 66.67% 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 66.67% 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 57.14% of the companies in the same 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
- LKQ has a Profit Margin of 4.99%. This is in the better half of the industry: LKQ outperforms 76.19% of its industry peers.
- LKQ's Profit Margin has improved in the last couple of years.
- The Operating Margin of LKQ (8.69%) is better than 76.19% of its industry peers.
- In the last couple of years the Operating Margin of LKQ has grown nicely.
- LKQ has a Gross Margin of 39.07%. This is amongst the best in 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
- LKQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- LKQ has less shares outstanding than it did 1 year ago.
- LKQ has less shares outstanding than it did 5 years ago.
- LKQ has a better debt/assets ratio than last year.
2.2 Solvency
- LKQ has an Altman-Z score of 2.61. 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.
- With a Altman-Z score value of 2.61, LKQ perfoms like the industry average, outperforming 47.62% 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.
- Looking at the Debt to FCF ratio, with a value of 5.75, LKQ is in the better half of 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 | 2.61 |
ROIC/WACC0.81
WACC9.1%
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.
- LKQ has a worse Quick ratio (0.67) 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%.
- 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-4.45%
Revenue Next 2Y-1.88%
Revenue Next 3Y-1.51%
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
- The Price/Earnings ratio is 10.34, 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 (27.32), we can say LKQ is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.34, which indicates a very decent valuation of LKQ.
- 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 24.32. LKQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
- LKQ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LKQ is cheaper than 85.71% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LKQ indicates a somewhat cheap valuation: LKQ is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.1 | ||
| EV/EBITDA | 7.72 |
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)1.28
EPS Next 2Y-2.63%
EPS Next 3Y-0.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.54%, LKQ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.93, LKQ pays a better dividend. On top of this LKQ pays more dividend than 95.24% 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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%
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%.