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LKQ Corp LKQ

Morningstar Rating
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Stock XNAS Rating as of
Today’s Losers
$41.65 −7.28 (14.88%)
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As of Delayed Price Pre-Open: $42.00 0.00
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Company Report

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LKQ Earnings: Short-Term Challenges Are Present, but We’re Still Optimistic on Long-Term Trends

Dawit Woldemariam

LKQ guided to weaker first-quarter earnings, but the demand environment turned out to be lower than management had expected. This led the company to lower 2024 sales and EPS guidance. Organic revenue growth expectations were reduced to 2.5%-4.5% from 3.5%-5.5% previously. Diluted EPS is now expected to be between $3.32-$3.62 versus $3.43-$3.73 before. Following the earnings update, the market sent LKQ’s shares down approximately 14% in intraday trading.

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Price vs Fair Value

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LKQ is trading at a 4% discount.
Price
$48.93
Fair Value
$85.00
Uncertainty
Medium
1-Star Price
$91.63
5-Star Price
$27.40
Economic Moat
Wjgtf
Capital Allocation
Zmxnrflr

Bulls Say, Bears Say

Bulls

Growth in miles driven increases the wear and tear on vehicles, requiring more maintenance and repair work to keep them on the road, benefiting LKQ.

Bears

Increasing adoption of ADAS technology could lead to a reduction in the number of auto accidents, pressuring LKQ’s collision business.

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News

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Trading Information

Previous Close Price
$48.93
Day Range
$41.46–46.76
52-Week Range
$41.46–59.38
Bid/Ask
$41.00 / $42.89
Market Cap
$11.10 Bil
Volume/Avg
61 / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
11.05
Price/Sales
0.79
Dividend Yield (Trailing)
2.35%
Dividend Yield (Forward)
2.45%
Total Yield
3.30%

Company Profile

LKQ is a global distributor of non-OEM automotive parts. Initially formed in 1998 as a consolidator of auto salvage operations in the United States, it has since greatly expanded its scope to include distribution of new mechanical and collision parts, specialty auto equipment, and remanufactured and recycled parts in both Europe and North America. It still maintains its auto salvage business and owns over 70 LKQ pick-your-part junkyards. Separate from the self-service business, LKQ purchases over 300,000 salvage automobiles annually that are used to extract parts for resale. Globally, the company maintains approximately 1,700 facilities.
Sector
Consumer Cyclical
Industry
Auto Parts
Stock Style Box
Mid Value
Total Number of Employees
49,000
Website
https://www.lkqcorp.com

Competitors

Valuation

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Metric
LKQ
GPC
AZO
Price/Earnings (Normalized)
 11.0517.9120.22
Price/Book Value
 1.805.17—
Price/Sales
 0.790.993.05
Price/Cash Flow
 8.9713.7617.16
Price/Earnings
LKQ
GPC
AZO

Financial Strength

Metric
LKQ
GPC
AZO
Quick Ratio
 0.570.420.09
Current Ratio
 1.701.230.82
Interest Coverage
 5.4028.039.44
Quick Ratio
LKQ
GPC
AZO

Profitability

Metric
LKQ
GPC
AZO
Return on Assets (Normalized)
 6.23%7.59%16.83%
Return on Equity (Normalized)
 15.02%31.53%—
Return on Invested Capital (Normalized)
 9.30%15.74%46.39%
Return on Assets
LKQ
GPC
AZO
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