LKQ CORP (LKQ) Fundamental Analysis & Valuation
NASDAQ:LKQ • US5018892084
30.65 USD
-0.69 (-2.2%)
At close: Mar 10, 2026
30.65 USD
0 (0%)
After Hours: 3/10/2026, 4:30:03 PM
This LKQ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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 has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on LKQ.
1. LKQ Profitability Analysis
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
- LKQ has a better Return On Assets (4.01%) than 65.22% of its industry peers.
- With a decent Return On Equity value of 9.29%, LKQ is doing good in the industry, outperforming 69.57% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.81%, LKQ is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
- LKQ had an Average Return On Invested Capital over the past 3 years of 7.69%. This is below the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 9.29% | ||
| ROIC | 6.81% |
ROA(3y)4.94%
ROA(5y)6.61%
ROE(3y)11.98%
ROE(5y)15.18%
ROIC(3y)7.69%
ROIC(5y)8.85%
1.3 Margins
- LKQ has a better Profit Margin (4.36%) than 73.91% of its industry peers.
- In the last couple of years the Profit Margin of LKQ has declined.
- The Operating Margin of LKQ (8.05%) is better than 78.26% of its industry peers.
- LKQ's Operating Margin has declined in the last couple of years.
- LKQ has a better Gross Margin (38.70%) than 86.96% of its industry peers.
- LKQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.05% | ||
| PM (TTM) | 4.36% | ||
| GM | 38.7% |
OM growth 3Y-10.94%
OM growth 5Y-2.57%
PM growth 3Y-20.89%
PM growth 5Y-4.12%
GM growth 3Y-1.88%
GM growth 5Y-0.47%
2. LKQ Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LKQ is destroying value.
- The number of shares outstanding for LKQ has been reduced compared to 1 year ago.
- The number of shares outstanding for LKQ has been reduced compared to 5 years ago.
- Compared to 1 year ago, LKQ has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.62 indicates that LKQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
- LKQ's Altman-Z score of 2.62 is in line compared to the rest of the industry. LKQ outperforms 43.48% of its industry peers.
- The Debt to FCF ratio of LKQ is 4.32, which is a neutral value as it means it would take LKQ, 4.32 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.32, LKQ is in line with its industry, outperforming 56.52% of the companies in the same industry.
- LKQ has a Debt/Equity ratio of 0.56. This is a neutral value indicating LKQ is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.56, LKQ perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.77
WACC8.88%
2.3 Liquidity
- A Current Ratio of 1.67 indicates that LKQ should not have too much problems paying its short term obligations.
- LKQ has a Current ratio (1.67) which is comparable to the rest of the industry.
- LKQ has a Quick Ratio of 1.67. This is a bad value and indicates that LKQ is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.58, LKQ is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.58 |
3. LKQ Growth Analysis
3.1 Past
- The earnings per share for LKQ have decreased strongly by -11.21% in the last year.
- LKQ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.00% yearly.
- The Revenue has decreased by -3.06% in the past year.
- The Revenue has been growing slightly by 3.26% on average over the past years.
EPS 1Y (TTM)-11.21%
EPS 3Y-6.99%
EPS 5Y4%
EPS Q2Q%-26.25%
Revenue 1Y (TTM)-3.06%
Revenue growth 3Y2.18%
Revenue growth 5Y3.26%
Sales Q2Q%-1.34%
3.2 Future
- Based on estimates for the next years, LKQ will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.56% on average per year.
- The Revenue is expected to grow by 3.69% on average over the next years.
EPS Next Y-0.8%
EPS Next 2Y3.19%
EPS Next 3Y4.98%
EPS Next 5Y9.56%
Revenue Next Year0.03%
Revenue Next 2Y0.83%
Revenue Next 3Y0.76%
Revenue Next 5Y3.69%
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 accelerating.
- 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. LKQ Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.92 indicates a reasonable valuation of LKQ.
- LKQ's Price/Earnings ratio is rather cheap when compared to the industry. LKQ is cheaper than 95.65% of the companies in the same industry.
- When comparing the Price/Earnings ratio of LKQ to the average of the S&P500 Index (26.25), we can say LKQ is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.00 indicates a reasonable 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, LKQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 10 |
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 91.30% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, LKQ is valued a bit cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.23 | ||
| EV/EBITDA | 7.37 |
4.3 Compensation for Growth
- The decent profitability rating of LKQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.48
EPS Next 2Y3.19%
EPS Next 3Y4.98%
5. LKQ Dividend Analysis
5.1 Amount
- LKQ has a Yearly Dividend Yield of 3.81%.
- Compared to an average industry Dividend Yield of 0.96, 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 1.82, LKQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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
- 51.07% of the earnings are spent on dividend by LKQ. This is a bit on the high side, but may be sustainable.
DP51.07%
EPS Next 2Y3.19%
EPS Next 3Y4.98%
LKQ Fundamentals: All Metrics, Ratios and Statistics
30.65
-0.69 (-2.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)04-30 2026-04-30
Inst Owners109.25%
Inst Owner Change-1.5%
Ins Owners0.44%
Ins Owner Change5.43%
Market Cap7.82B
Revenue(TTM)13.92B
Net Income(TTM)607.00M
Analysts81.33
Price Target41.97 (36.93%)
Short Float %5.33%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend1.21
Dividend Growth(5Y)N/A
DP51.07%
Div Incr Years3
Div Non Decr Years3
Ex-Date03-12 2026-03-12 (0.3)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.24%
Min EPS beat(2)-10.64%
Max EPS beat(2)10.16%
EPS beat(4)2
Avg EPS beat(4)-1.66%
Min EPS beat(4)-10.64%
Max EPS beat(4)10.16%
EPS beat(8)3
Avg EPS beat(8)-2.77%
EPS beat(12)5
Avg EPS beat(12)-1.39%
EPS beat(16)7
Avg EPS beat(16)-0.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)0.79%
Revenue beat(4)1
Avg Revenue beat(4)-1.48%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)0.79%
Revenue beat(8)1
Avg Revenue beat(8)-2.28%
Revenue beat(12)3
Avg Revenue beat(12)-1.54%
Revenue beat(16)4
Avg Revenue beat(16)-1.75%
PT rev (1m)-1.94%
PT rev (3m)-2.91%
EPS NQ rev (1m)-9.57%
EPS NQ rev (3m)-14.11%
EPS NY rev (1m)-6.65%
EPS NY rev (3m)-7.54%
Revenue NQ rev (1m)-2.06%
Revenue NQ rev (3m)-3.57%
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 10 | ||
| P/S | 0.56 | ||
| P/FCF | 9.23 | ||
| P/OCF | 7.36 | ||
| P/B | 1.2 | ||
| P/tB | 153.33 | ||
| EV/EBITDA | 7.37 |
EPS(TTM)3.09
EY10.08%
EPS(NY)3.07
Fwd EY10%
FCF(TTM)3.32
FCFY10.83%
OCF(TTM)4.17
OCFY13.59%
SpS54.54
BVpS25.62
TBVpS0.2
PEG (NY)N/A
PEG (5Y)2.48
Graham Number42.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 9.29% | ||
| ROCE | 9.33% | ||
| ROIC | 6.81% | ||
| ROICexc | 6.99% | ||
| ROICexgc | 15.73% | ||
| OM | 8.05% | ||
| PM (TTM) | 4.36% | ||
| GM | 38.7% | ||
| FCFM | 6.09% |
ROA(3y)4.94%
ROA(5y)6.61%
ROE(3y)11.98%
ROE(5y)15.18%
ROIC(3y)7.69%
ROIC(5y)8.85%
ROICexc(3y)7.87%
ROICexc(5y)9.09%
ROICexgc(3y)18.52%
ROICexgc(5y)20.24%
ROCE(3y)10.54%
ROCE(5y)12.14%
ROICexgc growth 3Y-13.14%
ROICexgc growth 5Y-1.58%
ROICexc growth 3Y-15.08%
ROICexc growth 5Y-2.36%
OM growth 3Y-10.94%
OM growth 5Y-2.57%
PM growth 3Y-20.89%
PM growth 5Y-4.12%
GM growth 3Y-1.88%
GM growth 5Y-0.47%
F-Score5
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.32 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 51.67% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 4.87 | ||
| Cash Conversion | 69.12% | ||
| Profit Quality | 139.54% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 2.62 |
F-Score5
WACC8.88%
ROIC/WACC0.77
Cap/Depr(3y)80.17%
Cap/Depr(5y)85.59%
Cap/Sales(3y)2.18%
Cap/Sales(5y)2.1%
Profit Quality(3y)121.19%
Profit Quality(5y)110.28%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.21%
EPS 3Y-6.99%
EPS 5Y4%
EPS Q2Q%-26.25%
EPS Next Y-0.8%
EPS Next 2Y3.19%
EPS Next 3Y4.98%
EPS Next 5Y9.56%
Revenue 1Y (TTM)-3.06%
Revenue growth 3Y2.18%
Revenue growth 5Y3.26%
Sales Q2Q%-1.34%
Revenue Next Year0.03%
Revenue Next 2Y0.83%
Revenue Next 3Y0.76%
Revenue Next 5Y3.69%
EBIT growth 1Y-16.98%
EBIT growth 3Y-8.99%
EBIT growth 5Y0.6%
EBIT Next Year26.36%
EBIT Next 3Y10.12%
EBIT Next 5Y11.09%
FCF growth 1Y4.57%
FCF growth 3Y-6.25%
FCF growth 5Y-7.8%
OCF growth 1Y-5.17%
OCF growth 3Y-5.26%
OCF growth 5Y-5.94%
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 6 / 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 51.07%.