Lkq Corp
LKQ
Wholesale-Motor Vehicles & Motor Vehicle Parts & Supplies
Mkt Cap
$13.09BPE
13.95Debt
-Cash
$299MEV
-FCF
$998MP/E Ratio
13.95Debt
-Cash
$299MEV
-FCF
$998MCharts data: {"Earnings":[{"time":"2014-12-30","value":381519000},{"time":"2015-12-30","value":423223000},{"time":"2017-12-30","value":530228000},{"time":"2018-12-30","value":480118000},{"time":"2019-12-30","value":541260000},{"time":"2020-12-30","value":638423000},{"time":"2021-12-30","value":1090873000},{"time":"2022-12-30","value":1149000000},{"time":"2023-12-30","value":938000000}],"Sales":[{"time":"2014-12-30","value":6740064000},{"time":"2015-12-30","value":7192633000},{"time":"2017-12-30","value":9736909000},{"time":"2018-12-30","value":11876674000},{"time":"2019-12-30","value":12506109000},{"time":"2020-12-30","value":11628830000},{"time":"2021-12-30","value":13088504000},{"time":"2022-12-30","value":12794000000},{"time":"2023-12-30","value":13866000000}],"Net Margins":[{"time":"2014-12-30","value":0.05660465538606162},{"time":"2015-12-30","value":0.05884117818884962},{"time":"2017-12-30","value":0.05445547452482097},{"time":"2018-12-30","value":0.04042529078427176},{"time":"2019-12-30","value":0.043279648370248495},{"time":"2020-12-30","value":0.05490002003640951},{"time":"2021-12-30","value":0.08334588888080716},{"time":"2022-12-30","value":0.08980772236986087},{"time":"2023-12-30","value":0.06764748305206982}],"Assets":[{"time":"2014-12-30","value":5573492000},{"time":"2015-12-30","value":5647837000},{"time":"2017-12-30","value":9366872000},{"time":"2018-12-30","value":11393402000},{"time":"2019-12-30","value":12779956000},{"time":"2020-12-30","value":12360533000},{"time":"2021-12-30","value":12606154000},{"time":"2022-12-30","value":12038000000},{"time":"2023-12-30","value":15079000000}],"Stockholders Equity":[{"time":"2014-12-30","value":2720657000},{"time":"2015-12-30","value":3114682000},{"time":"2017-12-30","value":4206653000},{"time":"2018-12-30","value":4838752000},{"time":"2019-12-30","value":5048580000},{"time":"2020-12-30","value":5671300000},{"time":"2021-12-30","value":5786584000},{"time":"2022-12-30","value":5467000000},{"time":"2023-12-30","value":6181000000}],"ROE":[{"time":"2014-12-30","value":0.14023046639102246},{"time":"2015-12-30","value":0.13588000315923102},{"time":"2017-12-30","value":0.1260451004634801},{"time":"2018-12-30","value":0.0992235187916223},{"time":"2019-12-30","value":0.10721034429483142},{"time":"2020-12-30","value":0.11257083913741117},{"time":"2021-12-30","value":0.1885176124635882},{"time":"2022-12-30","value":0.21017011157856227},{"time":"2023-12-30","value":0.15175537938844846}],"ROA":[{"time":"2014-12-30","value":0.11705946648887268},{"time":"2015-12-30","value":0.12516119002726175},{"time":"2017-12-30","value":0.09269551244001199},{"time":"2018-12-30","value":0.07809853457290457},{"time":"2019-12-30","value":0.07273311426111326},{"time":"2020-12-30","value":0.079994851354711},{"time":"2021-12-30","value":0.11695652774034015},{"time":"2022-12-30","value":0.131915600598106},{"time":"2023-12-30","value":0.0899927050865442}]}
LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. It operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. 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. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, marine electronics, cargo management products, wheels, tires, and suspension products. It serves collision and mechanical repair shops, and new and used car dealerships, as well as retail customers. The company operates in the United States, Canada, the United Kingdom, Germany, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Austria, Poland, Slovakia, Taiwan, and other European countries. LKQ Corporation was incorporated in 1998 and is headquartered in Chicago, Illinois.
Sector
DCF
Discounted Cash Flow Valuation of Lkq Corp
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $998M | $1.174B | $1.364B | $1.566B | $1.776B | $1.99B | $2.201B | $2.403B | $2.591B | $2.757B | $2.895B | $28.95B |
| DCF | $1.021B | $1.032B | $1.03B | $1.016B | $989.2M | $951.4M | $903.5M | $847M | $783.6M | $715.5M | $7.155B | |
| Value | $16.44B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 14%
Earnings Stability 60%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 5.7% | 5.9% | 5.4% | 4% | 4.3% | 5.5% | 8.3% | 9% | 6.8% | 6.8% |
| ROA | 12% | 13% | 9.3% | 7.8% | 7.3% | 8% | 12% | 13% | 9% | 9% |
| ROE | 14% | 14% | 13% | 9.9% | 11% | 11% | 19% | 21% | 15% | 15% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +6.32%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.87%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +9.49%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.78%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +14.49%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +1.85%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | - | - | - | - | - | - | - | - |
| Debt Equity | 0.69 | - | - | - | - | - | - | - | - | - |
| MIN | ||||||||||
| Graham Stability | - | - | - | 100% | 100% | 100% | 100% | 100% | 98% | 98% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is -.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.98.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 9.8% | 3.1% | 6% | 8.4% | -2.6% |
| Net Income | 12% | 14% | 14% | -18% | -0.7% |
| Stockholders Equity | 10% | 5% | 2.9% | 13% | -2.9% |
| FCF | 16% | 17% | -7.7% | -2.9% | -6.9% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +3.15%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -2.58%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +14.33%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -0.7%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +5.02%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -2.9%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +16.72%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -6.85%.