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LKQ Corp LKQ

Morningstar Rating
$41.24 −0.46 (1.10%)
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Company Report

Short-Term Challenges Pressure LKQ's Performance, but We Remain Optimistic on Long-Term Trends

LKQ is the top alternative vehicle-parts provider to repair shops in North America and Europe. We believe the company benefits from scale-driven cost advantages in its business. Customers value LKQ’s consistent parts availability across a wide range of products and quick delivery. LKQ helps customers complete repairs faster, improving productivity. We think the company’s strong distribution network will support its ability to keep order fulfillment rates high in both aftermarket and salvage products.

Price vs Fair Value

LKQ is trading at a 382% premium.
Price
$41.70
Fair Value
$86.90
Uncertainty
Medium
1-Star Price
$41.87
5-Star Price
$24.68
Economic Moat
Vdmllb
Capital Allocation
Xrcrtxpb

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

Trading Information

Previous Close Price
$41.70
Day Range
$40.9741.56
52-Week Range
$40.9759.38
Bid/Ask
$41.25 / $41.89
Market Cap
$11.00 Bil
Volume/Avg
1.1 Mil / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
10.94
Price/Sales
0.78
Dividend Yield (Trailing)
2.85%
Dividend Yield (Forward)
2.91%
Total Yield
3.39%

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 vehicle 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

Competitors

Valuation

Metric
LKQ
AAP
AZO
Price/Earnings (Normalized)
10.9417.6419.24
Price/Book Value
1.791.49
Price/Sales
0.780.342.83
Price/Cash Flow
8.8812.0815.97
Price/Earnings
LKQ
AAP
AZO

Financial Strength

Metric
LKQ
AAP
AZO
Quick Ratio
0.570.250.09
Current Ratio
1.701.200.79
Interest Coverage
5.401.368.86
Quick Ratio
LKQ
AAP
AZO

Profitability

Metric
LKQ
AAP
AZO
Return on Assets (Normalized)
6.71%0.60%16.56%
Return on Equity (Normalized)
16.17%2.79%
Return on Invested Capital (Normalized)
9.91%2.35%44.88%
Return on Assets
LKQ
AAP
AZO
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