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LKQ

LKQNasdaqGS:LKQ Stock Report

Last Price

US$54.24

Market Cap

US$15.8b

7D

-0.9%

1Y

52.0%

Updated

27 Jan, 2022

Data

Company Financials +
LKQ fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends1/6

LKQ Stock Overview

LKQ Corporation distributes replacement parts, components, and systems used in the repair and maintenance of vehicles.

LKQ Competitors

Genuine Parts

NYSE:GPC

US$18.8b

General Motors

NYSE:GM

US$75.4b

O'Reilly Automotive

NasdaqGS:ORLY

US$43.6b

Parker-Hannifin

NYSE:PH

US$40.1b

Price History & Performance

Summary of all time highs, changes and price drops for LKQ
Historical stock prices
Current Share PriceUS$54.24
52 Week HighUS$60.43
52 Week LowUS$34.79
Beta1.62
1 Month Change-7.49%
3 Month Change-3.74%
1 Year Change51.98%
3 Year Change104.14%
5 Year Change71.10%
Change since IPO2,792.80%

Recent News & Updates

Jan 24
Does LKQ (NASDAQ:LKQ) Deserve A Spot On Your Watchlist?

Does LKQ (NASDAQ:LKQ) Deserve A Spot On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Jan 23

Why I Took Profits In LKQ Corporation

In November of 2020, I shared an article that explained why I had decided to buy LKQ Corp. Since then, LKQ has performed very well, nearly doubling the performance of the S&P 500. After examining LKQ's historical earnings trends and analysts' estimates for the future, I think LKQ is now in danger of boom/bust cycle. Because of that boom/bust risk, I have taken profits in this stock.

Dec 30
Does LKQ (NASDAQ:LKQ) Have A Healthy Balance Sheet?

Does LKQ (NASDAQ:LKQ) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Nov 24
Returns At LKQ (NASDAQ:LKQ) Are On The Way Up

Returns At LKQ (NASDAQ:LKQ) Are On The Way Up

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Nov 19

LKQ Corporation: A Favorable Risk To Reward Prospect On Automotive Parts

LKQ Corporation is performing well during the current fiscal year, which underscores the company's quality. The long-term outlook for the business is likely appealing, and the company is cheaper than one of its peers. In the best case, shares have some decent upside, but in the worst case it's probably not a bad prospect by any means.

Nov 12
Is LKQ Corporation (NASDAQ:LKQ) Trading At A 29% Discount?

Is LKQ Corporation (NASDAQ:LKQ) Trading At A 29% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of LKQ Corporation...

Shareholder Returns

LKQUS Retail DistributorsUS Market
7D-0.9%-4.1%-5.1%
1Y52.0%26.9%3.3%

Return vs Industry: LKQ exceeded the US Retail Distributors industry which returned 26.9% over the past year.

Return vs Market: LKQ exceeded the US Market which returned 3.3% over the past year.

Price Volatility

Is LKQ's price volatile compared to industry and market?
LKQ volatility
LKQ Average Weekly Movement3.5%
Retail Distributors Industry Average Movement7.1%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

Stable Share Price: LKQ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LKQ's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199844,000Nick Zarconehttps://www.lkqcorp.com

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 distributes bumper covers, automotive body panels, and lights, as well as automotive glass products, such as windshields; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; lights and bumper assemblies; scrap metal and other materials to metals recyclers; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries.

LKQ Fundamentals Summary

How do LKQ's earnings and revenue compare to its market cap?
LKQ fundamental statistics
Market CapUS$15.81b
Earnings (TTM)US$1.04b
Revenue (TTM)US$12.86b

15.3x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LKQ income statement (TTM)
RevenueUS$12.86b
Cost of RevenueUS$7.63b
Gross ProfitUS$5.22b
ExpensesUS$4.19b
EarningsUS$1.04b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 17, 2022

Earnings per share (EPS)3.55
Gross Margin40.63%
Net Profit Margin8.05%
Debt/Equity Ratio39.3%

How did LKQ perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

n/a

Payout Ratio

Valuation

Is LKQ undervalued compared to its fair value and its price relative to the market?

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LKQ ($54.24) is trading below our estimate of fair value ($90.95)

Significantly Below Fair Value: LKQ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LKQ is poor value based on its PE Ratio (15.3x) compared to the US Retail Distributors industry average (14.8x).

PE vs Market: LKQ is good value based on its PE Ratio (15.3x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: LKQ is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: LKQ's PB Ratio (2.7x) is in line with the US Retail Distributors industry average.


Future Growth

How is LKQ forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LKQ's forecast earnings growth (4.6% per year) is above the savings rate (2%).

Earnings vs Market: LKQ's earnings (4.6% per year) are forecast to grow slower than the US market (12.9% per year).

High Growth Earnings: LKQ's earnings are forecast to grow, but not significantly.

Revenue vs Market: LKQ's revenue (3.2% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: LKQ's revenue (3.2% 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 (18.3%).


Past Performance

How has LKQ performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LKQ has high quality earnings.

Growing Profit Margin: LKQ's current net profit margins (8.1%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: LKQ's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: LKQ's earnings growth over the past year (72.9%) exceeds its 5-year average (12.4% per year).

Earnings vs Industry: LKQ earnings growth over the past year (72.9%) underperformed the Retail Distributors industry 72.9%.


Return on Equity

High ROE: LKQ's Return on Equity (17.4%) is considered low.


Financial Health

How is LKQ's financial position?


Financial Position Analysis

Short Term Liabilities: LKQ's short term assets ($4.3B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: LKQ's short term assets ($4.3B) exceed its long term liabilities ($4.2B).


Debt to Equity History and Analysis

Debt Level: LKQ's net debt to equity ratio (32.5%) is considered satisfactory.

Reducing Debt: LKQ's debt to equity ratio has reduced from 95.3% to 39.3% over the past 5 years.

Debt Coverage: LKQ's debt is well covered by operating cash flow (71.6%).

Interest Coverage: LKQ's interest payments on its debt are well covered by EBIT (20.7x coverage).


Balance Sheet


Dividend

What is LKQ current dividend yield, its reliability and sustainability?

1.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LKQ's dividend (1.84%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: LKQ's dividend (1.84%) is low compared to the top 25% of dividend payers in the US market (3.56%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether LKQ's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if LKQ's dividend payments are increasing as they only just started paying a dividend.


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: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

  • Explore strong dividend paying companies in the Retail industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Nick Zarcone (63 yo)

4.67yrs

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 ($USD7.84M) is below average for companies of similar size in the US market ($USD11.47M).

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 (4.3 years average tenure).


Board Members

Experienced Board: LKQ's board of directors are considered experienced (3.4 years average tenure).


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 employee growth, exchange listings and data sources


Key Information

  • Name: LKQ Corporation
  • Ticker: LKQ
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Distributors
  • Sector: Retail
  • Implied Market Cap: US$15.810b
  • Shares outstanding: 291.49m
  • Website: https://www.lkqcorp.com

Number of Employees


Location

  • LKQ Corporation
  • 500 West Madison Street
  • Suite 2800
  • Chicago
  • Illinois
  • 60661
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/27 00:04
End of Day Share Price2022/01/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.