LKQ CORP (LKQ) Stock Fundamental Analysis
NASDAQ:LKQ - Nasdaq - US5018892084 - Common Stock - Currency: USD
Overall LKQ gets a fundamental rating of 5 out of 10. We evaluated LKQ against 19 industry peers in the Distributors industry. Both the profitability and the financial health of LKQ get a neutral evaluation. Nothing too spectacular is happening here. 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.
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 4.53%, LKQ is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
LKQ has a Return On Equity (11.35%) which is comparable to the rest of the industry.
LKQ has a Return On Invested Capital (8.10%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LKQ is significantly below the industry average of 18.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 11.35% | ||
| ROIC | 8.1% |
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
With a decent Profit Margin value of 4.97%, LKQ is doing good in the industry, outperforming 73.68% of the companies in the same industry.
LKQ's Profit Margin has improved in the last couple of years.
LKQ has a Operating Margin of 9.35%. This is in the better half of the industry: LKQ outperforms 78.95% of its industry peers.
In the last couple of years the Operating Margin of LKQ has grown nicely.
LKQ has a better Gross Margin (39.27%) than 78.95% of its industry peers.
LKQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.35% | ||
| PM (TTM) | 4.97% | ||
| GM | 39.27% |
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 just above the Cost of Capital (WACC), so LKQ is still creating some value.
Compared to 1 year ago, LKQ has less shares outstanding
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 2.66. 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.
LKQ's Altman-Z score of 2.66 is in line compared to the rest of the industry. LKQ outperforms 42.11% of its industry peers.
The Debt to FCF ratio of LKQ is 7.77, which is on the high side as it means it would take LKQ, 7.77 years of fcf income to pay off all of its debts.
LKQ has a Debt to FCF ratio of 7.77. This is comparable to the rest of the industry: LKQ outperforms 57.89% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that LKQ is somewhat dependend on debt financing.
LKQ has a Debt to Equity ratio (0.62) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.88
WACC9.22%
2.3 Liquidity
LKQ has a Current Ratio of 1.52. 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 1.52, LKQ perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that LKQ may have some problems paying its short term obligations.
LKQ has a worse Quick ratio (0.56) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
LKQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.43%.
The Earnings Per Share has been growing by 8.08% on average over the past years. This is quite good.
The Revenue has decreased by -0.74% in the past 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)-4.43%
EPS 3Y-4.22%
EPS 5Y8.08%
EPS Q2Q%-3.66%
Revenue 1Y (TTM)-0.74%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-6.48%
3.2 Future
LKQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.68% yearly.
The Revenue is expected to grow by 2.24% on average over the next years.
EPS Next Y2.27%
EPS Next 2Y5.38%
EPS Next 3Y5.97%
EPS Next 5Y6.68%
Revenue Next Year-1.35%
Revenue Next 2Y0.86%
Revenue Next 3Y1.44%
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.
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
With a Price/Earnings ratio of 10.76, the valuation of LKQ can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LKQ indicates a rather cheap valuation: LKQ is cheaper than 84.21% of the companies listed in the same industry.
LKQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.46.
The Price/Forward Earnings ratio is 9.60, which indicates a very decent valuation of LKQ.
Based on the Price/Forward Earnings ratio, LKQ is valued cheaper than 94.74% 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 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LKQ is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
68.42% of the companies in the same industry are more expensive than LKQ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.93 | ||
| EV/EBITDA | 7.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LKQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.74
PEG (5Y)1.33
EPS Next 2Y5.38%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.20%, LKQ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.63, LKQ pays a better dividend. On top of this LKQ pays more dividend than 84.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, LKQ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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 44.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.94%
EPS Next 2Y5.38%
EPS Next 3Y5.97%
37.11
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners104.42%
Inst Owner Change1.86%
Ins Owners0.38%
Ins Owner Change-0.83%
Market Cap9.58B
Analysts81.54
Price Target54.18 (46%)
Short Float %4.48%
Short Ratio5.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend1.21
Dividend Growth(5Y)N/A
DP44.94%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.54%
Min EPS beat(2)0.47%
Max EPS beat(2)6.61%
EPS beat(4)2
Avg EPS beat(4)-0.13%
Min EPS beat(4)-5.83%
Max EPS beat(4)6.61%
EPS beat(8)3
Avg EPS beat(8)-2.22%
EPS beat(12)5
Avg EPS beat(12)-1.18%
EPS beat(16)9
Avg EPS beat(16)4.46%
Revenue beat(2)0
Avg Revenue beat(2)-2.97%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-2.36%
Revenue beat(4)0
Avg Revenue beat(4)-3.33%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-2.36%
Revenue beat(8)1
Avg Revenue beat(8)-2.19%
Revenue beat(12)2
Avg Revenue beat(12)-2.17%
Revenue beat(16)5
Avg Revenue beat(16)-0.85%
PT rev (1m)0%
PT rev (3m)-0.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.39%
EPS NY rev (1m)0.4%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 9.6 | ||
| P/S | 0.68 | ||
| P/FCF | 16.93 | ||
| P/OCF | 11.08 | ||
| P/B | 1.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.97 |
EPS(TTM)3.45
EY9.3%
EPS(NY)3.86
Fwd EY10.41%
FCF(TTM)2.19
FCFY5.91%
OCF(TTM)3.35
OCFY9.03%
SpS54.68
BVpS23.92
TBVpS-1.94
PEG (NY)4.74
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 11.35% | ||
| ROCE | 11.04% | ||
| ROIC | 8.1% | ||
| ROICexc | 8.26% | ||
| ROICexgc | 19.17% | ||
| OM | 9.35% | ||
| PM (TTM) | 4.97% | ||
| GM | 39.27% | ||
| FCFM | 4.01% |
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-Score5
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 7.77 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 73.65% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 5.34 | ||
| Cash Conversion | 50.12% | ||
| Profit Quality | 80.74% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.66 |
F-Score5
WACC9.22%
ROIC/WACC0.88
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)-4.43%
EPS 3Y-4.22%
EPS 5Y8.08%
EPS Q2Q%-3.66%
EPS Next Y2.27%
EPS Next 2Y5.38%
EPS Next 3Y5.97%
EPS Next 5Y6.68%
Revenue 1Y (TTM)-0.74%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-6.48%
Revenue Next Year-1.35%
Revenue Next 2Y0.86%
Revenue Next 3Y1.44%
Revenue Next 5Y2.24%
EBIT growth 1Y-3.51%
EBIT growth 3Y-3.37%
EBIT growth 5Y6.58%
EBIT Next Year23.83%
EBIT Next 3Y10.47%
EBIT Next 5Y7.5%
FCF growth 1Y-31.89%
FCF growth 3Y-8.96%
FCF growth 5Y0.29%
OCF growth 1Y-18.7%
OCF growth 3Y-6.4%
OCF growth 5Y1.05%