LKQLKQ Corporation exhibits strong fundamental performance with consistent revenue and profitability, supported by a robust balance sheet and positive cash flow. The company is well-positioned within the vehicle aftermarket industry. While recent performance has been mixed and technical indicators suggest some short-term choppiness, the long-term outlook remains positive.
LKQ Corporation operates in the stable and growing vehicle aftermarket industry, benefiting from trends such as aging vehicle fleets and increased demand for maintenance and repair. ESG factors are becoming more important for investors in this sector.
LKQ demonstrates solid financial health with healthy revenue growth, consistent profitability, and a manageable debt level. The company's ability to generate free cash flow is a key strength.
The stock has experienced a significant decline recently, indicated by a -17.8% change in current price and negative 1-month and 6-month performance. Technical indicators suggest oversold conditions on some timeframes, but the overall trend shows weakness.
| Factor | Score |
|---|---|
| Vehicle Aftermarket Demand | 75 |
| Sustainability & Circular Economy | 70 |
| Supply Chain Resilience | 65 |
| Technological Integration (e.g., Telematics) | 50 |
| Economic Sensitivity | 70 |
| Factor | Score |
|---|---|
| Valuation | 70 |
| Profitability | 70 |
| Growth | 75 |
| Balance Sheet Health | 65 |
| Cash Flow | 85 |
| Dividend Yield | 60 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 70 |
| Volume Confirmation | 50 |
| Support & Resistance | 50 |
| Recent Performance | 20 |
Attractive Valuation
The P/E TTM (Trailing Twelve Months) ratio of 11.58 is relatively low compared to historical averages and industry peers, suggesting the stock may be undervalued.
Consistent EPS Beat
The company has exceeded earnings per share (EPS) estimates in the majority of the last eight reported quarters, indicating reliable earnings generation.
Significant Recent Decline
The stock has experienced substantial negative performance across multiple recent periods, including 5D (-14.5%), 1M (-14.41%), 6M (-17.26%), and 1Y (-18.65%), indicating significant recent headwinds or investor concerns.
Potentially Elevated P/E in Short Term
Quarterly P/E ratios, particularly for Q1 2025 (64.3) and Q4 2024 (59.8), are significantly high, suggesting potential overvaluation or earnings volatility in the near term.
May 2025
15
Ex-Dividend Date
May 2025
29
Next Dividend Date
July 2025
24
Next Earnings Date
H: $0.98
A: $0.87
L: $0.75
H: 3.68B
A: 3.59B
L: 3.52B
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. The company operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. It offers bumper covers, automotive body panels, and lights, as well as paint and paint related consumables for refinishing vehicles; mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; and lights and bumper assemblies. The company also provides scrap metal and other materials to metals recyclers; precious metals contained in certain of our recycled parts, such as catalytic converters; 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, Germany, the United Kingdom, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Austria, Poland, Slovakia, France, and other European countries. LKQ Corporation was incorporated in 1998 and is headquartered in Antioch, Tennessee.
47.74 USD
The 39 analysts offering 1 year price forecasts for LKQ have a max estimate of 56.00 and a min estimate of 40.00.