LKQ CORP (LKQ)
US5018892084 - Common Stock
Overall LKQ gets a fundamental rating of 4 out of 10. We evaluated LKQ against 13 industry peers in the Distributors industry. While LKQ is still in line with the averages on profitability rating, there are concerns on its financial health. LKQ is not valued too expensively and it also shows a decent growth rate.
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.
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
LKQ has a Return On Assets (5.40%) which is in line with its industry peers.
LKQ's Return On Equity of 13.38% is fine compared to the rest of the industry. LKQ outperforms 75.00% of its industry peers.
With a Return On Invested Capital value of 8.39%, LKQ perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
LKQ had an Average Return On Invested Capital over the past 3 years of 10.29%. This is in line with the industry average of 11.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 13.38% | ||
| ROIC | 8.39% |
ROA(3y)8.14%
ROA(5y)6.76%
ROE(3y)18.38%
ROE(5y)15.45%
ROIC(3y)10.29%
ROIC(5y)9.09%
1.3 Margins
LKQ's Profit Margin of 5.79% is fine compared to the rest of the industry. LKQ outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of LKQ has grown nicely.
Looking at the Operating Margin, with a value of 9.62%, LKQ is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
LKQ's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 39.84%, LKQ is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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 | 9.62% | ||
| PM (TTM) | 5.79% | ||
| GM | 39.84% |
OM growth 3Y4.27%
OM growth 5Y5.2%
PM growth 3Y7.16%
PM growth 5Y10.8%
GM growth 3Y0.62%
GM growth 5Y0.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LKQ is destroying value.
LKQ has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LKQ has been reduced compared to 5 years ago.
The debt/assets ratio for LKQ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.82 indicates that LKQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.82, LKQ is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
LKQ has a debt to FCF ratio of 4.12. This is a neutral value as LKQ would need 4.12 years to pay back of all of its debts.
LKQ has a Debt to FCF ratio of 4.12. This is comparable to the rest of the industry: LKQ outperforms 41.67% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that LKQ is somewhat dependend on debt financing.
LKQ has a Debt to Equity ratio (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.77
WACC10.88%
2.3 Liquidity
LKQ has a Current Ratio of 1.70. This is a normal value and indicates that LKQ is financially healthy and should not expect problems in meeting its short term obligations.
LKQ's Current ratio of 1.70 is in line compared to the rest of the industry. LKQ outperforms 41.67% of its industry peers.
A Quick Ratio of 0.68 indicates that LKQ may have some problems paying its short term obligations.
The Quick ratio of LKQ (0.68) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
LKQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.96%.
The Earnings Per Share has been growing by 11.73% on average over the past years. This is quite good.
LKQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.14%.
The Revenue has been growing slightly by 3.15% on average over the past years.
EPS 1Y (TTM)-6.96%
EPS 3Y14.67%
EPS 5Y11.73%
EPS growth Q2Q-21.15%
Revenue 1Y (TTM)11.14%
Revenue growth 3Y6.04%
Revenue growth 5Y3.15%
Revenue growth Q2Q10.57%
3.2 Future
The Earnings Per Share is expected to grow by 3.90% 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 5.88% on average per year.
EPS Next Y6.62%
EPS Next 2Y8.24%
EPS Next 3Y7.42%
EPS Next 5Y3.9%
Revenue Next Year10.68%
Revenue Next 2Y7.15%
Revenue Next 3Y5.54%
Revenue Next 5Y5.88%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.09, which indicates a correct valuation of LKQ.
Compared to the rest of the industry, the Price/Earnings ratio of LKQ indicates a somewhat cheap valuation: LKQ is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LKQ to the average of the S&P500 Index (24.92), we can say LKQ is valued rather cheaply.
A Price/Forward Earnings ratio of 9.73 indicates a reasonable valuation of LKQ.
100.00% of the companies in the same industry are more expensive than LKQ, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.49. LKQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.09 | ||
| Fwd PE | 9.73 |
4.2 Price Multiples
LKQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LKQ is cheaper than 75.00% of the companies in the same industry.
LKQ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.27 | ||
| EV/EBITDA | 8.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LKQ does not grow enough to justify the current Price/Earnings ratio.
LKQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)1.03
EPS Next 2Y8.24%
EPS Next 3Y7.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.80%, LKQ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.72, LKQ pays a better dividend. On top of this LKQ pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, LKQ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
LKQ has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
LKQ pays out 37.50% of its income as dividend. This is a sustainable payout ratio.
DP37.5%
EPS Next 2Y8.24%
EPS Next 3Y7.42%
LKQ CORP
NASDAQ:LKQ (4/26/2024, 7:01:27 PM)
After market: 43.64 0 (0%)43.64
+0.72 (+1.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.09 | ||
| Fwd PE | 9.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.83
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 13.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.62% | ||
| PM (TTM) | 5.79% | ||
| GM | 39.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-6.96%
EPS 3Y14.67%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.14%
Revenue growth 3Y6.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y