NasdaqGS:LKQ

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

9.8%

NasdaqGS:LKQ

3.0%

US Retail Distributors

0.8%

US Market


1 Year Return

-1.5%

NasdaqGS:LKQ

1.1%

US Retail Distributors

1.9%

US Market

LKQ underperformed the Retail Distributors industry which returned 1.1% over the past year.

LKQ underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

LKQIndustryMarket
7 Day9.8%3.0%0.8%
30 Day21.4%6.9%3.4%
90 Day19.8%0.7%2.1%
1 Year-1.5%-1.5%2.7%1.1%4.2%1.9%
3 Year-9.8%-9.8%-1.2%-5.1%46.7%37.2%
5 Year19.9%19.9%43.9%32.9%62.3%44.5%

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

Valuation

Is LKQ undervalued based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

LKQ's share price is below the future cash flow value, but not at a moderate discount (< 20%).

LKQ's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

LKQ is good value based on earnings compared to the US Retail Distributors industry average.

LKQ is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

LKQ is poor value based on expected growth next year.


Price Based on Value of Assets

LKQ is good value based on assets compared to the US Retail Distributors industry average.


Next Steps

Future Growth

How is LKQ expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

LKQ's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

LKQ's earnings are expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).

LKQ's revenue growth is positive but not above the United States of America market average.

LKQ's earnings growth is expected to exceed the United States of America market average.

LKQ's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if LKQ will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has LKQ performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

LKQ's year on year earnings growth rate has been positive over the past 5 years.

LKQ's 1-year earnings growth is negative, it can't be compared to the 5-year average.

LKQ's 1-year earnings growth is negative, it can't be compared to the US Retail Distributors industry average.


Return on Equity

LKQ has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

LKQ used its assets less efficiently than the US Retail Distributors industry average last year based on Return on Assets.


Return on Capital Employed

LKQ's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is LKQ's financial position?


Financial Position Analysis

LKQ is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

LKQ's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

LKQ's level of debt (82.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (75.2% vs 82.4% today).

Debt is well covered by operating cash flow (25.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate LKQ's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate LKQ's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as LKQ has not reported any payouts.

Unable to verify if LKQ's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as LKQ has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of LKQ's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Nick Zarcone (61yo)

2.3yrs

Tenure

US$3,978,116

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's remuneration is lower than average for companies of similar size in United States of America.

Nick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

55.5yo

Average Age

The tenure for the LKQ management team is about average.


Board Age and Tenure

7.1yrs

Average Tenure

62yo

Average Age

The tenure for the LKQ board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$26,50029 Oct 18
Varun Laroyia
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,000
Max PriceUS$26.50
BuyUS$53,09429 Oct 18
Dominick Zarcone
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceUS$26.55

Ownership Breakdown


Management Team

  • Nick Zarcone (61yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$3.98m
  • John Quinn (61yo)

    Executive VP & CEO of LKQ Europe

    • Tenure: 4.6yrs
    • Compensation: US$3.87m
  • Arnd Franz (54yo)

    COO & COO of LKQ Europe

    • Tenure: 0.4yrs
  • Joe Holsten (67yo)

    Executive Chairman

    • Tenure: 7.8yrs
    • Compensation: US$1.72m
  • Victor Casini (56yo)

    Senior VP

    • Tenure: 21.6yrs
    • Compensation: US$1.66m
  • Walter Hanley (52yo)

    Senior Vice President of Development

    • Tenure: 16.8yrs
    • Compensation: US$1.99m
  • Joe Boutross

    Vice President of Investor Relations

    • Tenure: 8.5yrs
  • Ash Brooks (55yo)

    Senior VP & Chief Information Officer

    • Tenure: 3.3yrs
  • Varun Laroyia (47yo)

    Executive VP & CFO

    • Tenure: 1.9yrs
    • Compensation: US$1.90m
  • Guido Weber

    Director of Corporate Communications & Government Affairs

    • Tenure: 0yrs

Board Members

  • Nick Zarcone (61yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$3.98m
  • A. Allen (75yo)

    Lead Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$264.52k
  • John O'Brien (75yo)

    Director

    • Tenure: 16.2yrs
    • Compensation: US$245.77k
  • Jody Miller (61yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$133.03k
  • Blythe McGarvie (63yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$256.02k
  • Joe Holsten (67yo)

    Executive Chairman

    • Tenure: 7.8yrs
    • Compensation: US$1.72m
  • Billy Webster (61yo)

    Director

    • Tenure: 16.3yrs
    • Compensation: US$240.92k
  • Robert Hanser (65yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$319.68k
  • Guhan Subramanian (48yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$246.10k
  • Meg Divitto (47yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$130.18k

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$9.844b
  • Shares outstanding: 308.21m
  • 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

Biography

LKQ Corporation, together with its subsidiaries, distributes replacement parts, components, and systems used in the repair and maintenance of vehicles. It operates in three segments: North America, Europe, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:51
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.