LKQ Corporation

LKQ Corporation

LKQยทNASDAQ

$25.53

-0.19%
Consumer CyclicalAuto - Parts

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 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, 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.

At a Glance

Live Snapshot
Market Cap$6.50B
EPS2.3500
P/E Ratio10.86
Earnings Date07/23/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is compressed (P/E 10.9).

Valuation inputs: P/E 10.9, earnings yield +9.2%, momentum -0.2%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +9.3%, ROIC +6.6%).

Profitability stack: net margin +4.4%, ROE +9.3%, ROIC +6.6%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +56.8%, momentum -0.2%, net margin +4.4%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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LKQ Corporation Market vs Earnings Trajectory

LKQ ยท NASDAQ

Loading price and EPS data...

LKQ Corporation

LKQ Corporation Fair Value Envelope

LKQ ยท NASDAQ

Our analysis suggests that LKQ has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $25.53, this represents a potential HIDDEN relative to our calculated worth for LKQ Corporation.

Intrinsic Value
Current Price: $25.53
3Y-43.0%
5Y+12.0%
10Y+56.0%
3Y+9.0%
5Y+20.0%
10Y+62.0%
3Y-47.0%
5Y-5.0%
10Y+31.0%
3Y-15.0%
5Y-26.0%
10Y+67.0%
3Y-18.0%
5Y-33.0%
10Y+98.0%
3Y+26.0%
5Y+22.0%
10Y+82.0%
LKQ Corporation

LKQ Corporation Profit Bridge

LKQ ยท NASDAQ
Revenue13.92B
Cost of Goods Sold (8.62B)
Gross Profit5.29B
Operating Expenses (4.21B)
Operating Income1.09B
Interest Expense (224.00M)
Other Income/Expense-262.00M
Pretax Income825.00M
Income Tax (210.00M)
Net Income607.00M
Net Income
607.00M

Profitability Analysis

Gross Margin

38.0%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

7.8%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

4.4%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

25.5%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

38.03%
Gross Profit Margin
-3%
3Y-7.0%
5Y-4.0%
10Y-3.0%
7.81%
Operating Profit Margin
-6%
3Y-37.0%
5Y-8.0%
10Y-12.0%
4.36%
Net Profit Margin
-9%
3Y-51.0%
5Y-21.0%
10Y-19.0%
9.29%
Return on Equity
-19%
3Y-56.0%
5Y-18.0%
10Y-31.0%
4.01%
Return on Assets
-13%
3Y-58.0%
5Y-22.0%
10Y-28.0%
6.60%
Return on Invested Capital
-5%
3Y-44.0%
5Y-1.0%
10Y-8.0%
LKQ

LKQ Corporation Cash Conversion Engine

LKQ ยท NASDAQ
Net Income608.00M
Depreciation & Amortization418.00M
Stock-Based Compensation34.00M
Change in Working Capital-6.00M
Others84.00M
Capital Expenditures-216.00M
Free Cash Flow847.00M

Cash Flow Quality Analysis

FCF Conversion Rate

139.3%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

20.3%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+4.6%

Flat FCF growth. Stable but not expandingโ€”monitor for signs of business maturity or temporary headwinds.

Working Capital Impact

-$6.00M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

lkq

LKQ Corporation Funding & Solvency Profile

LKQ ยท NASDAQ
Cash & Cash Equivalents335.00M
Net Receivables1.46B
Inventory3.35B
Other Current Assets330.00M
Total Current Assets5 B
Property, Plant & Equipment2.73B
Goodwill & Intangible Assets6.40B
Long-Term Investments125.00M
Other Non-Current Assets414.00M
Total Non-Current Assets3 B
Total Assets
15.14B

Financial Health Analysis

Current Ratio

1.54x

Strong liquidity. The company has adequate resources to meet short-term liabilities.

Debt-to-Equity Ratio

1.33x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

2 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

36% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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LKQ Corporation Street Expectations Map

LKQ ยท NASDAQ

Wall Street analysts project that LKQ stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 36.50, with estimates ranging from a low of 34.00 to a high of 39.00.

Lowest Target
34.00
33.18%
Consensus Target
36.50
42.97%
Highest Target
39.00
52.76%

The consensus 1-year price target stands at 36.50, with estimates ranging from a low of 34.00 to a high of 39.00.

Analyst Consensus Analysis

Upside Potential

+43.0%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

13.7% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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LKQ Corporation Insider Positioning

LKQ ยท NASDAQ

During the last 12 months, insiders have purchased $820K worth of LKQ shares, with no selling activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

25.7K

820.10K

Sold

0

0.00

Net Activity

+820K

+$820K

Top Buyers

1
UX

Urbain Xavier

Director

15.0K sharesโ€ข1 transactions

$482K

2
JJL

Jude Justin L

Director, Officer: President And Ceo

5.7K sharesโ€ข1 transactions

$179K

3
CAC

Clarke Andrew C

Director

5.0K sharesโ€ข1 transactions

$160K

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Bullish

Strong bullish signal with $820K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.

Buy/Sell Ratio

โˆž:1

Perfect buy/sell ratio. Only buying activity with zero sellingโ€”the most bullish possible insider signal.

Insider Participation

High Buying

3 insider buyers vs. 0 sellers. Broad-based buying across management team suggests widespread confidence.

Insider Activity Insight

Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.

1.03%
Dividend Yield
4%
3Y+111.0%
5Y-
10Y-
ย 

lkq Dividend History

LKQ
10Y CAGR +2%
Latest $0.3
Annual $1.2
5 year growth trend
Last Period: +0%