29.75 USD
+0.6 (+2.06%)
29.75 USD
0 (0%)
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. While LKQ has a great profitability rating, there are some minor concerns on its financial health. LKQ has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year LKQ was profitable.
LKQ had a positive operating cash flow in the past year.
Each year in the past 5 years LKQ has been profitable.
LKQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LKQ (4.47%) is better than 69.57% of its industry peers.
LKQ has a better Return On Equity (10.63%) than 69.57% of its industry peers.
LKQ has a Return On Invested Capital (7.40%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for LKQ is below the industry average of 13.91%.
| 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's Profit Margin of 4.99% is fine compared to the rest of the industry. LKQ outperforms 78.26% of its industry peers.
LKQ's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.69%, LKQ is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
LKQ's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 39.07%, LKQ belongs to the best of the industry, outperforming 82.61% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LKQ is destroying value.
LKQ has less 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.53 indicates that LKQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LKQ (2.53) is comparable to the rest of the 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.
LKQ has a Debt to FCF ratio of 5.75. This is in the better half of the industry: LKQ outperforms 60.87% of its industry peers.
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 47.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.75 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.79
WACC9.32%
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.
The Current ratio of LKQ (1.60) is comparable to the rest of the industry.
A Quick Ratio of 0.67 indicates that LKQ may have some problems paying its short term obligations.
LKQ's Quick ratio of 0.67 is on the low side compared to the rest of the industry. LKQ is outperformed by 60.87% 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%.
The Earnings Per Share has been growing by 8.08% on average over the past years. This is quite good.
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
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-10.08%
EPS Next 2Y-1.18%
EPS Next 3Y2.26%
EPS Next 5Y6.68%
Revenue Next Year-4.12%
Revenue Next 2Y-0.74%
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
The Price/Earnings ratio is 9.02, 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 91.30% of the companies in the same industry.
LKQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
With a Price/Forward Earnings ratio of 8.75, the valuation of LKQ can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LKQ is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LKQ to the average of the S&P500 Index (35.79), we can say LKQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 8.75 |
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 86.96% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LKQ is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.6 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
The decent profitability rating of LKQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.12
EPS Next 2Y-1.18%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, LKQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.53, LKQ pays a better dividend. On top of this LKQ pays more dividend than 95.65% 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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
44.76% of the earnings are spent on dividend by LKQ. This is a bit on the high side, but may be sustainable.
DP44.76%
EPS Next 2Y-1.18%
EPS Next 3Y2.26%
29.75
+0.6 (+2.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners107.71%
Inst Owner Change-2.53%
Ins Owners0.35%
Ins Owner Change0.19%
Market Cap7.65B
Revenue(TTM)13.96B
Net Income(TTM)697.00M
Analysts81.54
Price Target44.82 (50.66%)
Short Float %4.31%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend1.21
Dividend Growth(5Y)N/A
DP44.76%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)1.48%
PT rev (3m)2.99%
EPS NQ rev (1m)-7.39%
EPS NQ rev (3m)-11.89%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)-2.7%
Revenue NQ rev (1m)-2.24%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 8.75 | ||
| P/S | 0.55 | ||
| P/FCF | 10.6 | ||
| P/OCF | 7.91 | ||
| P/B | 1.17 | ||
| P/tB | 1093.48 | ||
| EV/EBITDA | 6.97 |
EPS(TTM)3.3
EY11.09%
EPS(NY)3.4
Fwd EY11.42%
FCF(TTM)2.81
FCFY9.43%
OCF(TTM)3.76
OCFY12.65%
SpS54.26
BVpS25.47
TBVpS0.03
PEG (NY)N/A
PEG (5Y)1.12
Graham Number43.49
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 | 2.53 |
F-Score5
WACC9.32%
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-10.08%
EPS Next 2Y-1.18%
EPS Next 3Y2.26%
EPS Next 5Y6.68%
Revenue 1Y (TTM)-3.71%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-2.37%
Revenue Next Year-4.12%
Revenue Next 2Y-0.74%
Revenue Next 3Y0.83%
Revenue Next 5Y2.24%
EBIT growth 1Y-9%
EBIT growth 3Y-3.37%
EBIT growth 5Y6.58%
EBIT Next Year16.51%
EBIT Next 3Y8.45%
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 of LKQ CORP (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.
What is the expected EPS growth for LKQ CORP (LKQ) stock?
The Earnings per Share (EPS) of LKQ CORP (LKQ) is expected to decline by -10.08% in the next year.
Can you provide the dividend sustainability for LKQ stock?
The dividend rating of LKQ CORP (LKQ) is 6 / 10 and the dividend payout ratio is 44.76%.