Market Cap
US$13.3b
Last Updated
2021/04/10 23:47 UTC
Data Sources
Company Financials +
Executive Summary
LKQ Corporation distributes replacement parts, components, and systems used in the repair and maintenance of vehicles. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with solid track record.
Similar Companies
Share Price & News
How has LKQ's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LKQ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: LKQ's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
2.6%
LKQ
3.3%
US Retail Distributors
2.1%
US Market
1 Year Return
95.7%
LKQ
83.4%
US Retail Distributors
56.3%
US Market
Return vs Industry: LKQ exceeded the US Retail Distributors industry which returned 83.4% over the past year.
Return vs Market: LKQ exceeded the US Market which returned 56.3% over the past year.
Shareholder returns
| LKQ | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 3.3% | 2.1% |
| 30 Day | 3.5% | 4.7% | 2.4% |
| 90 Day | 14.8% | 9.7% | 6.1% |
| 1 Year | 95.7%95.7% | 86.3%83.4% | 59.1%56.3% |
| 3 Year | 15.4%15.4% | 60.4%53.3% | 65.7%55.1% |
| 5 Year | 32.8%32.8% | 70.5%57.1% | 122.3%97.6% |
Long-Term Price Volatility Vs. Market
How volatile is LKQ's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Should LKQ (NASDAQ:LKQ) Be Disappointed With Their 38% Profit?1 month ago | Simply Wall St
We Think LKQ (NASDAQ:LKQ) Can Stay On Top Of Its Debt2 months ago | Simply Wall St
Is LKQ Corporation's (NASDAQ:LKQ) Recent Stock Performance Influenced By Its Financials In Any Way?Valuation
Is LKQ undervalued compared to its fair value and its price relative to the market?
21.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LKQ ($44.08) is trading below our estimate of fair value ($56.15)
Significantly Below Fair Value: LKQ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LKQ is good value based on its PE Ratio (21x) compared to the US Retail Distributors industry average (40.4x).
PE vs Market: LKQ is good value based on its PE Ratio (21x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: LKQ is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: LKQ is good value based on its PB Ratio (2.4x) compared to the US Retail Distributors industry average (3.8x).
Future Growth
How is LKQ forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
8.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LKQ's forecast earnings growth (8.4% per year) is above the savings rate (2%).
Earnings vs Market: LKQ's earnings (8.4% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: LKQ's earnings are forecast to grow, but not significantly.
Revenue vs Market: LKQ's revenue (4.2% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: LKQ's revenue (4.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LKQ's Return on Equity is forecast to be low in 3 years time (12.9%).
Past Performance
How has LKQ performed over the past 5 years?
5.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LKQ has high quality earnings.
Growing Profit Margin: LKQ's current net profit margins (5.5%) are higher than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: LKQ's earnings have grown by 5.3% per year over the past 5 years.
Accelerating Growth: LKQ's earnings growth over the past year (18%) exceeds its 5-year average (5.3% per year).
Earnings vs Industry: LKQ earnings growth over the past year (18%) exceeded the Retail Distributors industry 13.7%.
Return on Equity
High ROE: LKQ's Return on Equity (11.2%) is considered low.
Financial Health
How is LKQ's financial position?
Financial Position Analysis
Short Term Liabilities: LKQ's short term assets ($4.0B) exceed its short term liabilities ($2.0B).
Long Term Liabilities: LKQ's short term assets ($4.0B) do not cover its long term liabilities ($4.7B).
Debt to Equity History and Analysis
Debt Level: LKQ's debt to equity ratio (50.4%) is considered high.
Reducing Debt: LKQ's debt to equity ratio has reduced from 51.7% to 50.4% over the past 5 years.
Debt Coverage: LKQ's debt is well covered by operating cash flow (50.3%).
Interest Coverage: LKQ's interest payments on its debt are well covered by EBIT (10.4x coverage).
Balance Sheet
Dividend
What is LKQ current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LKQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LKQ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LKQ's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LKQ's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LKQ's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Nick Zarcone (62 yo)
3.92yrs
Tenure
US$7,843,673
Compensation
Mr. Dominick Paul Zarcone, also known as Nick, has been the Chief Executive Officer and President of LKQ Corporation since May 2017 and has been its Director since May 8, 2017. Mr. Zarcone served as Chief ...
CEO Compensation Analysis
Compensation vs Market: Nick's total compensation ($USD7.84M) is about average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Nick's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: LKQ's management team is considered experienced (3.5 years average tenure).
Board Members
Experienced Board: LKQ's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
LKQ Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: LKQ Corporation
- Ticker: LKQ
- Exchange: NasdaqGS
- Founded: 1998
- Industry: Distributors
- Sector: Retail
- Market Cap: US$13.330b
- Shares outstanding: 302.41m
- Website: https://www.lkqcorp.com
Number of Employees
Location
- LKQ Corporation
- 500 West Madison Street
- Suite 2800
- Chicago
- Illinois
- 60661
- United States
Listings
Biography
LKQ Corporation distributes replacement parts, components, and systems used in the repair and maintenance of vehicles. It operates through three segments: North America, Europe, and Specialty. The company ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/10 23:47 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.