LKQ CORP (LKQ) Stock Fundamental Analysis
USA - NASDAQ:LKQ - US5018892084 - Common Stock
31.13 USD
+0.59 (+1.93%)
31.13 USD
0 (0%)
Overall LKQ gets a fundamental rating of 5 out of 10. We evaluated LKQ against 22 industry peers in the Distributors industry. While LKQ has a great profitability rating, there are some minor concerns on its financial health. LKQ is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LKQ was profitable.
LKQ had a positive operating cash flow in the past year.
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
LKQ has a Return On Assets of 4.44%. This is in the better half of the industry: LKQ outperforms 68.18% of its industry peers.
Looking at the Return On Equity, with a value of 10.86%, LKQ is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.13%, LKQ is in line with its industry, outperforming 54.55% 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 significantly below the industry average of 15.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 10.86% | ||
| ROIC | 7.13% |
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 better Profit Margin (5.04%) than 72.73% of its industry peers.
LKQ's Profit Margin has improved in the last couple of years.
LKQ has a Operating Margin of 8.94%. This is in the better half of the industry: LKQ outperforms 77.27% of its industry peers.
LKQ's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 39.21%, LKQ belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
LKQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.94% | ||
| PM (TTM) | 5.04% | ||
| GM | 39.21% |
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 below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LKQ has been reduced compared to 1 year ago.
LKQ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LKQ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.52 indicates that LKQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
LKQ's Altman-Z score of 2.52 is on the low side compared to the rest of the industry. LKQ is outperformed by 68.18% of its industry peers.
The Debt to FCF ratio of LKQ is 6.55, which is on the high side as it means it would take LKQ, 6.55 years of fcf income to pay off all of its debts.
LKQ's Debt to FCF ratio of 6.55 is in line compared to the rest of the industry. LKQ outperforms 54.55% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that LKQ is somewhat dependend on debt financing.
LKQ has a Debt to Equity ratio (0.67) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.55 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.68
WACC10.54%
2.3 Liquidity
LKQ has a Current Ratio of 1.81. 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 1.81 is in line compared to the rest of the industry. LKQ outperforms 59.09% of its industry peers.
LKQ has a Quick Ratio of 1.81. 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 Quick ratio (0.69) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for LKQ have decreased by -4.57% in the last year.
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 -3.02% in the last year.
The Revenue has been growing slightly by 2.80% on average over the past years.
EPS 1Y (TTM)-4.57%
EPS 3Y-4.22%
EPS 5Y8.08%
EPS Q2Q%-11.22%
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-1.86%
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.
LKQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.24% yearly.
EPS Next Y-9.45%
EPS Next 2Y-0.4%
EPS Next 3Y2.26%
EPS Next 5Y6.68%
Revenue Next Year-2.79%
Revenue Next 2Y0.04%
Revenue Next 3Y0.83%
Revenue Next 5Y2.24%
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 stable.
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
A Price/Earnings ratio of 9.32 indicates a reasonable valuation of LKQ.
86.36% of the companies in the same industry are more expensive than LKQ, based on the Price/Earnings ratio.
LKQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.79.
Based on the Price/Forward Earnings ratio of 9.02, the valuation of LKQ can be described as reasonable.
LKQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. LKQ is cheaper than 95.45% of the companies in the same industry.
LKQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
81.82% 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 the industry average as 68.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.85 | ||
| EV/EBITDA | 7.2 |
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)1.15
EPS Next 2Y-0.4%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.95%, LKQ has a reasonable but not impressive dividend return.
LKQ's Dividend Yield is rather good when compared to the industry average which is at 3.22. LKQ pays more dividend than 95.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, LKQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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
44.21% of the earnings are spent on dividend by LKQ. This is a bit on the high side, but may be sustainable.
DP44.21%
EPS Next 2Y-0.4%
EPS Next 3Y2.26%
31.13
+0.59 (+1.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners107.71%
Inst Owner Change3.39%
Ins Owners0.35%
Ins Owner Change0.99%
Market Cap8.01B
Analysts80
Price Target43.66 (40.25%)
Short Float %3.9%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend1.21
Dividend Growth(5Y)N/A
DP44.21%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.08%
Min EPS beat(2)-6.63%
Max EPS beat(2)0.47%
EPS beat(4)2
Avg EPS beat(4)-0.33%
Min EPS beat(4)-6.63%
Max EPS beat(4)6.61%
EPS beat(8)3
Avg EPS beat(8)-2.94%
EPS beat(12)4
Avg EPS beat(12)-2.19%
EPS beat(16)8
Avg EPS beat(16)0.94%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-1.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.01%
Revenue beat(8)1
Avg Revenue beat(8)-2.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.91%
Revenue beat(16)4
Avg Revenue beat(16)-1.55%
PT rev (1m)0.31%
PT rev (3m)-19.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.54%
EPS NY rev (1m)-2.02%
EPS NY rev (3m)-11.1%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 9.02 | ||
| P/S | 0.57 | ||
| P/FCF | 11.85 | ||
| P/OCF | 8.45 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.2 |
EPS(TTM)3.34
EY10.73%
EPS(NY)3.45
Fwd EY11.09%
FCF(TTM)2.63
FCFY8.44%
OCF(TTM)3.68
OCFY11.84%
SpS54.59
BVpS25.33
TBVpS-1.5
PEG (NY)N/A
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 10.86% | ||
| ROCE | 9.71% | ||
| ROIC | 7.13% | ||
| ROICexc | 7.29% | ||
| ROICexgc | 16.06% | ||
| OM | 8.94% | ||
| PM (TTM) | 5.04% | ||
| GM | 39.21% | ||
| FCFM | 4.81% |
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%
ROICexcg growth 3Y-5.75%
ROICexcg 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-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.55 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 66.18% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 5.13 | ||
| Cash Conversion | 56.87% | ||
| Profit Quality | 95.48% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.52 |
F-Score6
WACC10.54%
ROIC/WACC0.68
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)-4.57%
EPS 3Y-4.22%
EPS 5Y8.08%
EPS Q2Q%-11.22%
EPS Next Y-9.45%
EPS Next 2Y-0.4%
EPS Next 3Y2.26%
EPS Next 5Y6.68%
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-1.86%
Revenue Next Year-2.79%
Revenue Next 2Y0.04%
Revenue Next 3Y0.83%
Revenue Next 5Y2.24%
EBIT growth 1Y-6.06%
EBIT growth 3Y-3.37%
EBIT growth 5Y6.58%
EBIT Next Year16.51%
EBIT Next 3Y8.45%
EBIT Next 5Y7.5%
FCF growth 1Y-29.36%
FCF growth 3Y-8.96%
FCF growth 5Y0.29%
OCF growth 1Y-22.04%
OCF growth 3Y-6.4%
OCF growth 5Y1.05%