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LKQ valuation

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julioInvested
Community Contributor
Published
December 14 2023
Updated
March 12 2025
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julio's Fair Value
US$59.65
28.7% undervalued intrinsic discount
12 Mar
US$42.54
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1Y
-17.9%
7D
1.2%

Bull -

  • Growth in miles driven increases the wear and tear on vehicles, requiring more maintenance and repair work to keep them on the road, benefiting LKQ.
  • LKQ’s collision business could see rising demand from increasing auto claims as more drivers return to the road following the COVID-19 pandemic.
  • Increasing adoption of hybrid vehicles presents new revenue opportunities for LKQ, such as new battery-related parts, in addition to its ICE-related parts.

Bear

  • Increasing adoption of ADAS technology could lead to a reduction in the number of auto accidents, pressuring LKQ’s collision business.
  • The company’s 1 LKQ Europe initiative could face challenges in rationalizing its product portfolio and improving its procurement systems.
  • Bottlenecks in the ocean freight industry could extend the average time it takes for LKQ’s imported aftermarket parts to reach its operating regions, making it difficult for the firm to maintain its high order fulfillment rates.

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Disclaimer

The user julio has a position in NasdaqGS:LKQ. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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US$51.03
FV
16.6% undervalued intrinsic discount
1.51%
Revenue growth p.a.
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3 days ago author updated this narrative
julio'sFair Value
US$59.7
28.7% undervalued intrinsic discount
Future estimation in
PastFuture026b2014201820222024202620302034Revenue US$26.0bEarnings US$1.8b
% p.a.
Decrease
Increase
Current revenue growth rate
1.97%
Retail Distributors revenue growth rate
0.16%