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LKQ

LKQ NasdaqGS:LKQ Stock Report

Last Price

US$49.98

Market Cap

US$13.7b

7D

5.9%

1Y

-3.8%

Updated

06 Oct, 2022

Data

Company Financials +

LKQ Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LKQ
Historical stock prices
Current Share PriceUS$49.98
52 Week HighUS$60.43
52 Week LowUS$42.36
Beta1.37
1 Month Change-2.52%
3 Month Change-2.42%
1 Year Change-3.81%
3 Year Change65.44%
5 Year Change34.46%
Change since IPO2,565.60%

Recent News & Updates

Oct 04
LKQ (NASDAQ:LKQ) Shareholders Will Want The ROCE Trajectory To Continue

LKQ (NASDAQ:LKQ) Shareholders Will Want The ROCE Trajectory To Continue

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...

Sep 19

LKQ appoints CEO for Europe, CFO for group

Alternative and specialty parts provider LKQ (NASDAQ:LKQ) said Varun Laroyia is appointed CEO and MD of LKQ Europe and Rick Galloway the group's senior vice president and CFO. The appointments are effective immediately. Laroyia, who serves as CFO and executive vice president of the group, succeeds Arnd Franz. Franz is leaving the company to join Mahle Group as CEO. Galloway serves as CFO of LKQ Wholesale, North America and self service segments. Source: Press Release

Sep 09
With EPS Growth And More, LKQ (NASDAQ:LKQ) Makes An Interesting Case

With EPS Growth And More, LKQ (NASDAQ:LKQ) Makes An Interesting Case

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Shareholder Returns

LKQUS Retail DistributorsUS Market
7D5.9%5.3%3.3%
1Y-3.8%-2.5%-20.4%

Return vs Industry: LKQ underperformed the US Retail Distributors industry which returned 0.6% over the past year.

Return vs Market: LKQ exceeded the US Market which returned -18.8% over the past year.

Price Volatility

Is LKQ's price volatile compared to industry and market?
LKQ volatility
LKQ Average Weekly Movement4.1%
Retail Distributors Industry Average Movement7.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.9%

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.

About the Company

FoundedEmployeesCEOWebsite
199846,000Nick 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$13.71b
Earnings (TTM)US$1.21b
Revenue (TTM)US$13.17b

11.4x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LKQ income statement (TTM)
RevenueUS$13.17b
Cost of RevenueUS$7.83b
Gross ProfitUS$5.34b
Other ExpensesUS$4.13b
EarningsUS$1.21b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)4.40
Gross Margin40.52%
Net Profit Margin9.17%
Debt/Equity Ratio41.1%

How did LKQ perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

18%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LKQ?

Other financial metrics that can be useful for relative valuation.

LKQ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA10.1x
PEG Ratio-7.9x

Price to Earnings Ratio vs Peers

How does LKQ's PE Ratio compare to its peers?

LKQ PE Ratio vs Peers
The above table shows the PE ratio for LKQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average46.9x
GPC Genuine Parts
20.1x6.6%US$22.2b
POOL Pool
16.9x-1.9%US$13.0b
FHAI Microalliance Group
130xn/aUS$2.1b
FNKO Funko
20.7x43.0%US$1.1b
LKQ LKQ
11.4x-1.4%US$13.7b

Price-To-Earnings vs Peers: LKQ is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (46.9x).


Price to Earnings Ratio vs Industry

How does LKQ's PE Ratio compare vs other companies in the Global Retail Distributors Industry?

Price-To-Earnings vs Industry: LKQ is good value based on its Price-To-Earnings Ratio (11.4x) compared to the Global Retail Distributors industry average (14.3x)


Price to Earnings Ratio vs Fair Ratio

What is LKQ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LKQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio12.4x

Price-To-Earnings vs Fair Ratio: LKQ is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.4x).


Share Price vs Fair Value

What is the Fair Price of LKQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LKQ ($49.98) is trading below our estimate of fair value ($87.36)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-1.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LKQ's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: LKQ's earnings are forecast to decline over the next 3 years (-1.4% per year).

High Growth Earnings: LKQ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LKQ's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: LKQ's revenue (2.8% 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 (17.9%).


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Past Performance

How has LKQ performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LKQ has high quality earnings.

Growing Profit Margin: LKQ's current net profit margins (9.2%) are higher than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: LKQ's earnings have grown by 19.3% per year over the past 5 years.

Accelerating Growth: LKQ's earnings growth over the past year (27.9%) exceeds its 5-year average (19.3% per year).

Earnings vs Industry: LKQ earnings growth over the past year (27.9%) underperformed the Retail Distributors industry 39.3%.


Return on Equity

High ROE: LKQ's Return on Equity (21.5%) is considered high.


Discover strong past performing companies

Financial Health

How is LKQ's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LKQ's short term assets ($4.3B) exceed its short term liabilities ($2.5B).

Long Term Liabilities: LKQ's short term assets ($4.3B) exceed its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: LKQ's net debt to equity ratio (36.4%) is considered satisfactory.

Reducing Debt: LKQ's debt to equity ratio has reduced from 78.4% to 41.1% over the past 5 years.

Debt Coverage: LKQ's debt is well covered by operating cash flow (50.6%).

Interest Coverage: LKQ's interest payments on its debt are well covered by EBIT (24.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.00%

Current Dividend Yield

Dividend Yield vs Market

LKQ Dividend Yield vs Market
How does LKQ dividend yield compare to the market?
SegmentDividend Yield
Company (LKQ)2.0%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Retail Distributors)1.9%
Analyst forecast in 3 Years (LKQ)2.3%

Notable Dividend: LKQ's dividend (2%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: LKQ's dividend (2%) is low compared to the top 25% of dividend payers in the US market (4.54%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (17.9%), LKQ's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.7%), LKQ's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.7yrs

Average management tenure


CEO

Nick Zarcone (64 yo)

5.42yrs

Tenure

US$9,445,636

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

Nick Zarcone's Compensation vs LKQ Earnings
How has Nick Zarcone's remuneration changed compared to LKQ's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$1b

Mar 31 2022n/an/a

US$1b

Dec 31 2021US$9mUS$1m

US$1b

Sep 30 2021n/an/a

US$1b

Jun 30 2021n/an/a

US$945m

Mar 31 2021n/an/a

US$758m

Dec 31 2020US$8mUS$963k

US$639m

Sep 30 2020n/an/a

US$599m

Jun 30 2020n/an/a

US$557m

Mar 31 2020n/an/a

US$589m

Dec 31 2019US$6mUS$975k

US$541m

Sep 30 2019n/an/a

US$441m

Jun 30 2019n/an/a

US$423m

Mar 31 2019n/an/a

US$430m

Dec 31 2018US$4mUS$955k

US$485m

Sep 30 2018n/an/a

US$570m

Jun 30 2018n/an/a

US$559m

Mar 31 2018n/an/a

US$553m

Dec 31 2017US$4mUS$736k

US$540m

Sep 30 2017n/an/a

US$510m

Jun 30 2017n/an/a

US$498m

Mar 31 2017n/an/a

US$485m

Dec 31 2016US$2mUS$500k

US$456m

Sep 30 2016n/an/a

US$455m

Jun 30 2016n/an/a

US$446m

Mar 31 2016n/an/a

US$428m

Dec 31 2015US$5mUS$383k

US$423m

Compensation vs Market: Nick's total compensation ($USD9.45M) is about average for companies of similar size in the US market ($USD13.03M).

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 (2.7 years average tenure).


Board Members

Experienced Board: LKQ's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LKQ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NasdaqGS:LKQ Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
04 Aug 22SellUS$88,304John MendelIndividual1,617US$54.61
29 Jul 22SellUS$3,820,418Joseph HolstenIndividual70,000US$54.58
17 May 22SellUS$251,750,000ValueAct Capital Management, L.P.Company5,000,000US$50.35

Ownership Breakdown

What is the ownership structure of LKQ?
Owner TypeNumber of SharesOwnership Percentage
State or Government111,9510.04%
General Public1,320,6930.5%
Individual Insiders2,126,8510.8%
Institutions270,830,48398.7%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 66.71% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.94%
The Vanguard Group, Inc.
27,264,812$1.4b-0.75%0.03%
7.81%
BlackRock, Inc.
21,433,483$1.1b-4.43%0.03%
5.29%
Massachusetts Financial Services Company
14,508,584$725.1m8.2%0.18%
4.57%
ValueAct Capital Management, L.P.
12,552,751$627.4m-28.48%6.68%
4.43%
Boston Partners Global Investors, Inc.
12,160,307$607.8m-3.84%0.5%
4.06%
State Street Global Advisors, Inc.
11,140,049$556.8m-4.9%0.03%
3.11%
Allspring Global Investments, LLC
8,539,040$426.8m-0.55%0.64%
2.85%
Eaton Vance Management
7,808,703$390.3m2.19%0.14%
2.36%
Lazard Asset Management LLC
6,475,701$323.7m-4.06%0.31%
2.2%
Geode Capital Management, LLC
6,036,306$301.7m6.34%0.04%
2.08%
Goldman Sachs Asset Management, L.P.
5,695,104$284.6m-0.17%0.12%
1.97%
Norges Bank Investment Management
5,416,985$270.7m0%0.04%
1.96%
J.P. Morgan Asset Management, Inc.
5,376,785$268.7m0.51%0.05%
1.81%
Wellington Management Group LLP
4,966,536$248.2m127.84%0.04%
1.66%
River Road Asset Management, LLC
4,561,819$228.0m-19.97%3.16%
1.53%
Dimensional Fund Advisors LP
4,210,967$210.5m-1.86%0.05%
1.13%
Arrowstreet Capital, Limited Partnership
3,095,257$154.7m-6.07%0.22%
1.12%
Northern Trust Global Investments
3,085,155$154.2m-7.25%0.03%
1.09%
Southpoint Capital Advisors LP
3,000,000$149.9m0%3.6%
1.09%
BNY Mellon Asset Management
2,992,753$149.6m1.32%0.03%
1.06%
Nordea Investment Management AB
2,900,479$145.0m1.1%0.13%
0.93%
UBS Asset Management
2,560,022$127.9m-2.38%0.02%
0.92%
Legal & General Investment Management Limited
2,510,998$125.5m-2.02%0.04%
0.88%
FMR LLC
2,421,842$121.0m-24.65%0.01%
0.85%
AllianceBernstein L.P.
2,340,537$117.0m-12.33%0.05%

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$13.714b
  • Shares outstanding: 274.39m
  • Website: https://www.lkqcorp.com

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LKQNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2003
LKQ1DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2003
0JSJLSE (London Stock Exchange)YesCommon StockGBUSDOct 2003
L1KQ34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/06 00:00
End of Day Share Price2022/10/06 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.