Lkq Corp

Consumer Discretionary
Motor Vehicles
www.lkqcorp.com

Earnings Score
Moat Score

Market Cap $10.49B
PE 15
Debt -
Cash $239.00M
EV -
FCF $810.00M

Earnings

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Sales & Net Margins

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Earnings	$693.00M
EBIT	$1.20B
ROE	11%
ROA	8%
FCF	$810.00M
Equity	$6.03B
Growth Stability	65%
PE	15.14
PEG	3.02
PB	1.74
P/FCF	12.95
P/S	0.73
Price/Cash	0.02
Net Margins	5%
Gross Margins	39%
Op. Margins	8%
Earnings CAGR	10%
Sales Growth YoY	-4%
Sales Growth QoQ	-6%
Sales CAGR	5%
FCF CAGR	12%
Equity CAGR	8%
Earnings Stability	0.37
Earnings Growth YoY	-12%
Earnings Growth QoQ	-18%

Earnings CAGR 5Y	5%
Sales CAGR 5Y	4%
FCF CAGR 5Y	-7%
Equity CAGR 5Y	3%
Earnings CAGR 3Y	5%
Sales CAGR 3Y	5%
FCF CAGR 3Y	-3%
Equity CAGR 3Y	5%
Market Cap	$10.49B
Revenue	$14.36B
Dividend Yield	3%
Payout Ratio	46%
Assets	$14.96B
Cash	$239.00M
Shares Outstanding	259.1M
Earnings Score	22%
Moat Score	85%
Working Capital	2.04B
Current Ratio	1.71
Gross Profit	$5.61B
Shares Growth 3y	-2%
Equity Growth QoQ	-3%
Equity Growth YoY	-2%

Assets & ROA

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Stockholders Equity & ROE

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LKQ is a leading 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, LKQ maintains approximately 1,700 facilities.

SEC Filings

Direct access to Lkq Corp (LKQ) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Lkq Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Lkq Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 10%

Stability 37%

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Lkq Corp Discounted Cash Flow

Fully customizable DCF calculator online for Lkq Corp.

Years

Calculation mode

= $19B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$810M	$909M	$1B	$1.1B	$1.3B	$1.4B	$1.6B	$1.8B	$2B	$2.3B	$2.6B	$26B
DCF		$827M	$843M	$861M	$878M	$896M	$914M	$933M	$952M	$972M	$991M	$9.9B
Value	$19B

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	12/2015	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	6%	5%	4%	4%	5%	8%	9%	7%	5%	5%
ROA	-	-	8%	7%	8%	12%	13%	9%	8%	8%
ROE	-	-	10%	11%	11%	19%	21%	15%	11%	11%

Bad Net Margins (4.83%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

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	12/2015	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	100%	100%	100%	98%	65%	65%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (65%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	35%	22%	5%	-7%	13%	-2%	8%	4%	4%
Earnings YoY growth	-	25%	-9%	13%	18%	71%	5%	-18%	-26%	5%
Equity YoY growth	-	35%	15%	4%	12%	2%	-6%	13%	-2%	3%
FCF YoY growth	-	-5%	36%	73%	59%	-16%	-4%	-3%	-19%	-7%