LKQ CORP (LKQ) Stock Fundamental Analysis
NASDAQ:LKQ - US5018892084 - Common Stock
32.92 USD
+0.83 (+2.59%)
32.92 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 quite some concerns on its financial health. LKQ has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
LKQ had positive earnings in the past year.
In the past year LKQ had a positive cash flow from operations.
LKQ had positive earnings in each of the past 5 years.
LKQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LKQ's Return On Assets of 4.44% is fine compared to the rest of the industry. LKQ outperforms 68.18% of its industry peers.
The Return On Equity of LKQ (10.86%) is better than 63.64% 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.
LKQ had an Average Return On Invested Capital over the past 3 years of 9.30%. This is significantly below the industry average of 15.23%.
| 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 72.73% of the companies in the same industry.
In the last couple of years the Profit Margin of LKQ has grown nicely.
Looking at the Operating Margin, with a value of 8.94%, 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 Operating Margin of LKQ has grown nicely.
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.
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 | 8.94% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LKQ is destroying value.
Compared to 1 year ago, LKQ has less shares outstanding
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
LKQ has an Altman-Z score of 2.54. 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 2.54 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.
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 | 2.54 |
ROIC/WACC0.74
WACC9.57%
2.3 Liquidity
A Current Ratio of 1.81 indicates that LKQ should not have too much problems paying its short term obligations.
The Current ratio of LKQ (1.81) is comparable to the rest of the industry.
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 of 0.69. This is in the lower half of the industry: LKQ underperforms 63.64% of its industry peers.
| 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.
LKQ shows a decrease in Revenue. In the last year, the revenue decreased by -3.02%.
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.
The Revenue is expected to grow by 2.24% on average over the next years.
EPS Next Y-7.58%
EPS Next 2Y0.5%
EPS Next 3Y3.99%
EPS Next 5Y6.68%
Revenue Next Year-2.88%
Revenue Next 2Y0.26%
Revenue Next 3Y1.15%
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
LKQ is valuated reasonably with a Price/Earnings ratio of 9.86.
Compared to the rest of the industry, the Price/Earnings ratio of LKQ indicates a rather cheap valuation: LKQ is cheaper than 86.36% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LKQ to the average of the S&P500 Index (27.44), we can say LKQ is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.37, 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 95.45% of the companies are valued more expensively.
LKQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LKQ is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LKQ indicates a somewhat cheap valuation: LKQ is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.53 | ||
| EV/EBITDA | 7.44 |
4.3 Compensation for Growth
The decent profitability rating of LKQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.22
EPS Next 2Y0.5%
EPS Next 3Y3.99%
5. Dividend
5.1 Amount
LKQ has a Yearly Dividend Yield of 3.72%.
LKQ's Dividend Yield is rather good when compared to the industry average which is at 2.59. LKQ pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, LKQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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 44.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.21%
EPS Next 2Y0.5%
EPS Next 3Y3.99%
32.92
+0.83 (+2.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners107.14%
Inst Owner Change3.39%
Ins Owners0.38%
Ins Owner Change0.99%
Market Cap8.47B
Analysts80
Price Target42.03 (27.67%)
Short Float %4.05%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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)-22.43%
PT rev (3m)-22.43%
EPS NQ rev (1m)-6.6%
EPS NQ rev (3m)-20.69%
EPS NY rev (1m)-9.63%
EPS NY rev (3m)-9.27%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 9.37 | ||
| P/S | 0.6 | ||
| P/FCF | 12.53 | ||
| P/OCF | 8.93 | ||
| P/B | 1.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.44 |
EPS(TTM)3.34
EY10.15%
EPS(NY)3.51
Fwd EY10.68%
FCF(TTM)2.63
FCFY7.98%
OCF(TTM)3.68
OCFY11.19%
SpS54.59
BVpS25.33
TBVpS-1.5
PEG (NY)N/A
PEG (5Y)1.22
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 | 2.54 |
F-Score6
WACC9.57%
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-7.58%
EPS Next 2Y0.5%
EPS Next 3Y3.99%
EPS Next 5Y6.68%
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y3.13%
Revenue growth 5Y2.8%
Sales Q2Q%-1.86%
Revenue Next Year-2.88%
Revenue Next 2Y0.26%
Revenue Next 3Y1.15%
Revenue Next 5Y2.24%
EBIT growth 1Y-6.06%
EBIT growth 3Y-3.37%
EBIT growth 5Y6.58%
EBIT Next Year18.81%
EBIT Next 3Y8.27%
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%