NasdaqGS:LKQ

Stock Analysis Report

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Market Cap

US$14.5b

Last Updated

2021/06/23 05:40 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


Snowflake Analysis

Excellent balance sheet and good value.


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 +/- 3% a week.

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


Market Performance


7 Day Return

-1.4%

LKQ

0.3%

US Retail Distributors

-0.1%

US Market


1 Year Return

93.7%

LKQ

64.1%

US Retail Distributors

39.0%

US Market

Return vs Industry: LKQ exceeded the US Retail Distributors industry which returned 63.5% over the past year.

Return vs Market: LKQ exceeded the US Market which returned 39% over the past year.


Shareholder returns

LKQIndustryMarket
7 Day-1.4%0.3%-0.1%
30 Day-4.5%-1.5%2.6%
90 Day14.7%18.4%8.0%
1 Year93.7%93.7%66.4%64.1%41.2%39.0%
3 Year51.5%51.5%85.4%77.1%62.4%52.3%
5 Year53.1%53.1%99.2%83.3%132.3%106.2%

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

Valuation

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

21.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LKQ ($48.01) is trading below our estimate of fair value ($60.51)

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 (19.2x) compared to the US Retail Distributors industry average (35.7x).

PE vs Market: LKQ's PE Ratio (19.2x) is in line with the US market.


Price to Earnings Growth Ratio

PEG Ratio: LKQ is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: LKQ is good value based on its PB Ratio (2.5x) compared to the US Retail Distributors industry average (3.5x).


Future Growth

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

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LKQ's forecast earnings growth (4% per year) is above the savings rate (2%).

Earnings vs Market: LKQ's earnings (4% per year) are forecast to grow slower than the US market (15.7% per year).

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

Revenue vs Market: LKQ's revenue (4.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: LKQ's revenue (4.1% 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 (12.8%).


Past Performance

How has LKQ performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LKQ has high quality earnings.

Growing Profit Margin: LKQ's current net profit margins (6.4%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: LKQ's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: LKQ's earnings growth over the past year (28.8%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: LKQ earnings growth over the past year (28.8%) underperformed the Retail Distributors industry 28.8%.


Return on Equity

High ROE: LKQ's Return on Equity (12.9%) is considered low.


Financial Health

How is LKQ's financial position?


Financial Position Analysis

Short Term Liabilities: LKQ's short term assets ($4.5B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: LKQ's short term assets ($4.5B) exceed its long term liabilities ($4.3B).


Debt to Equity History and Analysis

Debt Level: LKQ's debt to equity ratio (45.2%) is considered high.

Reducing Debt: LKQ's debt to equity ratio has reduced from 87.4% to 45.2% over the past 5 years.

Debt Coverage: LKQ's debt is well covered by operating cash flow (66.7%).

Interest Coverage: LKQ's interest payments on its debt are well covered by EBIT (12x 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?

3.7yrs

Average management tenure


CEO

Nick Zarcone (62 yo)

4.08yrs

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 ($USD7.84M) is below average for companies of similar size in the US market ($USD11.28M).

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 (3.7 years average tenure).


Board Members

Experienced Board: LKQ's board of directors are not considered experienced ( 2.8 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$14.507b
  • Shares outstanding: 302.16m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/23 05:40
End of Day Share Price2021/06/22 00:00
Earnings2021/03/31
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.