LKQ Corp. (LKQ) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Autoliv, Inc.

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Lear Corp.

Gentex Corp.

Visteon Corp.

Goodyear Tire & Rubber Co.

LKQ Corp.

Fox Factory Holding Corp.

Adient plc

Why is LKQ Corp. ?

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at USD 1,063 MM
ROCE(HY) Lowest at 9.78%
INTEREST COVERAGE RATIO(Q) Lowest at 592.59

With ROCE of 11.09%, it has a very expensive valuation with a 1.16 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -28.67%, its profits have fallen by -14.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -28.67% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is LKQ Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

LKQ Corp.

-27.91%

-0.85

36.07%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.66%

EBIT Growth (5y)

1.06%

EBIT to Interest (avg)

12.44

Debt to EBITDA (avg)

1.89

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

1.32

Tax Ratio

27.83%

Dividend Payout Ratio

50.97%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.15%

ROE (avg)

16.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.25

EV to EBIT

10.48

EV to EBITDA

7.64

EV to Capital Employed

1.16

EV to Sales

0.84

PEG Ratio

Dividend Yield

393.02%

ROCE (Latest)

11.09%

ROE (Latest)

10.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 116.37%

DEBT-EQUITY RATIO (HY)

Lowest at 72.54 %

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,063 MM

ROCE(HY)

Lowest at 9.78%

INTEREST COVERAGE RATIO(Q)

Lowest at 592.59

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.68 times

NET SALES(Q)

Lowest at USD 3,312 MM

OPERATING PROFIT(Q)

Lowest at USD 320 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.66 %

PRE-TAX PROFIT(Q)

Lowest at USD 166 MM

NET PROFIT(Q)

Lowest at USD 117.99 MM

EPS(Q)

Lowest at USD 0.26

Here's what is working for LKQ Corp.

Dividend Payout Ratio

Highest at 116.37% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Debt-Equity Ratio

Lowest at 72.54 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for LKQ Corp.

Operating Cash Flow

Lowest at USD 1,063 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 592.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 166 MM has Fallen at -33.4%

over average net sales of the previous four periods of USD 249.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 117.99 MM has Fallen at -36.75%

over average net sales of the previous four periods of USD 186.55 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

Lowest at USD 3,312 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 320 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 9.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 166 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 117.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.26

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 2.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at USD 0.06 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income