LKQ CORP (LKQ) Stock Fundamental Analysis
USA - NASDAQ:LKQ - US5018892084 - Common Stock
30.62 USD
+0.27 (+0.89%)
30.62 USD
0 (0%)
LKQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Distributors industry. While LKQ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LKQ is cheap, but on the other hand it scores bad on growth.
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.
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
The Return On Assets of LKQ (4.44%) is better than 68.18% of its industry peers.
LKQ's Return On Equity of 10.86% is fine compared to the rest of the industry. LKQ outperforms 68.18% of its industry peers.
LKQ has a Return On Invested Capital of 7.13%. This is comparable to the rest of the industry: LKQ outperforms 54.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LKQ is significantly below the industry average of 14.75%.
| 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
Looking at the Profit Margin, with a value of 5.04%, LKQ is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Profit Margin of LKQ has grown nicely.
LKQ's Operating Margin of 8.94% is fine compared to the rest of the industry. LKQ outperforms 77.27% of its industry peers.
In the last couple of years the Operating Margin of LKQ has grown nicely.
The Gross Margin of LKQ (39.21%) is better than 81.82% of its industry peers.
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.
Compared to 5 years ago, LKQ has less shares outstanding
LKQ has a better debt/assets ratio than last year.
2.2 Solvency
LKQ has an Altman-Z score of 2.51. 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 has a Altman-Z score (2.51) which is comparable to the rest of the industry.
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.
The Debt to FCF ratio of LKQ (6.55) is better than 63.64% of its industry peers.
LKQ has a Debt/Equity ratio of 0.67. This is a neutral value indicating LKQ is somewhat dependend on debt financing.
The Debt to Equity ratio of LKQ (0.67) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.55 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.74
WACC9.61%
2.3 Liquidity
A Current Ratio of 1.81 indicates that LKQ should not have too much problems paying its short term obligations.
LKQ's Current ratio of 1.81 is in line compared to the rest of the industry. LKQ outperforms 54.55% of its industry peers.
A Quick Ratio of 0.69 indicates that LKQ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.69, LKQ is in line with its industry, outperforming 40.91% of the companies in the same 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.
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 -3.02% in the last year.
Measured over the past years, LKQ shows a small growth in Revenue. The Revenue has been growing by 2.80% on average per year.
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
LKQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.68% yearly.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 9.17, the valuation of LKQ can be described as very reasonable.
LKQ's Price/Earnings ratio is rather cheap when compared to the industry. LKQ is cheaper than 86.36% of the companies in the same industry.
LKQ is valuated cheaply when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.87 indicates a reasonable valuation of LKQ.
LKQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. LKQ is cheaper than 90.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.33, LKQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LKQ is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
LKQ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LKQ is cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.65 | ||
| EV/EBITDA | 7.17 |
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)1.14
EPS Next 2Y-0.4%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, LKQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.26, LKQ pays a better dividend. On top of this LKQ pays more dividend than 95.45% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, LKQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
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%
30.62
+0.27 (+0.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners107.71%
Inst Owner Change-1.47%
Ins Owners0.35%
Ins Owner Change1.38%
Market Cap7.88B
Revenue(TTM)14.05B
Net Income(TTM)708.00M
Analysts80
Price Target44.17 (44.25%)
Short Float %3.9%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
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)1.17%
PT rev (3m)-18.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.54%
EPS NY rev (1m)-2.02%
EPS NY rev (3m)-11.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.56 | ||
| P/FCF | 11.65 | ||
| P/OCF | 8.31 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.17 |
EPS(TTM)3.34
EY10.91%
EPS(NY)3.45
Fwd EY11.28%
FCF(TTM)2.63
FCFY8.58%
OCF(TTM)3.68
OCFY12.03%
SpS54.59
BVpS25.33
TBVpS-1.5
PEG (NY)N/A
PEG (5Y)1.14
Graham Number43.63
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%
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-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 | 2.51 |
F-Score6
WACC9.61%
ROIC/WACC0.74
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%