-1.18%
2.83%
2.72%
-8.94%
-19.03%
-31.15%
15.60%
AI Spotlight on LKQ
Company Description
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.
Market Data
| Last Price | 37.79 |
| Change Percentage | -1.18% |
| Open | 37.92 |
| Previous Close | 38.24 |
| Market Cap ( Millions) | 9824 |
| Volume | 240952 |
| Year High | 53.68 |
| Year Low | 35.56 |
| M A 50 | 37.89 |
| M A 200 | 40.57 |
Financial Ratios
| FCF Yield | 7.61% |
| Dividend Yield | 3.18% |
| ROE | 11.52% |
| Debt / Equity | 92.57% |
| Net Debt / EBIDTA | 314.82% |
| Price To Book | 1.59 |
| Price Earnings Ratio | 13.94 |
| Price To FCF | 13.13 |
| Price To sales | 0.68 |
| EV / EBITDA | 8.86 |
News
- Jan -27 - Fast-paced Momentum Stock LKQ (LKQ) Is Still Trading at a Bargain
- Jan -22 - LKQ Corporation to Release Fourth Quarter and Full Year 2024 Results on Thursday, February 20, 2025
- Jan -09 - LKQ Corporation Presents Attractive Risk-Reward As Cycles Normalize
- Jan -07 - Is Zoetis Inc. (NYSE: ZTS) Overvalued? Or Is It Worth Buying Now?
- Dec -11 - LKQ Corporation Continues Board Refreshment with the Appointment of James S. Metcalf
- Nov -11 - LKQ Subsidiary Keystone Automotive Operations Named 2024 Channel Partner of the Year by Specialty Equipment Market Association
- Oct -24 - LKQ Corporation (LKQ) Q3 2024 Earnings Call Transcript
- Oct -24 - LKQ Surpasses Q3 Earnings Expectations, Trims 2024 Outlook
- Oct -24 - LKQ (LKQ) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
- Oct -24 - LKQ (LKQ) Q3 Earnings Top Estimates
- Oct -24 - LKQ Corporation Announces Results for Third Quarter 2024
- Oct -24 - LKQ Corporation Announces $1 Billion Increase to its Stock Repurchase Program
- Oct -21 - Unveiling LKQ (LKQ) Q3 Outlook: Wall Street Estimates for Key Metrics
- Oct -13 - Buy This Down and Out S&P 500 Dividend Stock
- Sep -26 - LKQ Corporation to Release Third Quarter 2024 Results on Thursday, October 24, 2024
- Aug -06 - LKQ Corporation to Host Investor Day on September 10, 2024
- Aug -01 - 7 Undervalued Stocks to Scoop Up Amid Q3 Market Turbulence
- Jul -25 - LKQ Falls Short of Q2 Earnings Estimates, Cuts 2024 Guidance
- Jul -25 - Compared to Estimates, LKQ (LKQ) Q2 Earnings: A Look at Key Metrics
- Jul -25 - LKQ (LKQ) Lags Q2 Earnings and Revenue Estimates
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Europe
Expected Growth : 3.5 %
What the company do ?
Europe from LKQ Corporation refers to the European segment of LKQ Corporation, a leading provider of alternative and specialty parts for vehicles.
Why we expect these perspectives ?
Europe's 3.5% growth for LKQ Corporation is driven by increasing demand for aftermarket parts, a growing vehicle parc, and a shift towards more complex repairs. Additionally, LKQ's strategic acquisitions and expansion into new markets have contributed to its growth in the region.
Segment n°2 -> Wholesale - North America
Expected Growth : 4.2 %
What the company do ?
Wholesale - North America from LKQ Corporation is a leading provider of alternative vehicle parts, serving collision repair shops, mechanical repair shops, and new car dealerships.
Why we expect these perspectives ?
LKQ Corporation's Wholesale - North America segment growth of 4.2% is driven by increasing demand for recycled and refurbished auto parts, expansion of e-commerce platforms, and strategic acquisitions. Additionally, a growing focus on sustainability and cost savings among insurance companies and collision repair shops is contributing to the segment's growth.
Segment n°3 -> Specialty
Expected Growth : 3.8 %
What the company do ?
LKQ Corporation's specialty lies in providing alternative and specialty vehicle parts, including recycled, refurbished, and remanufactured components.
Why we expect these perspectives ?
LKQ Corporation's Specialty segment growth of 3.8% is driven by increasing demand for high-margin, niche products, such as collision repair and refinishing materials. Additionally, strategic acquisitions, expansion into new markets, and a strong online presence contribute to the segment's growth. Furthermore, the company's focus on providing a one-stop-shop experience for customers and its ability to capitalize on industry trends, such as the shift towards sustainable repair solutions, also support growth.
Segment n°4 -> Self Service
Expected Growth : 3.2 %
What the company do ?
Self Service from LKQ Corporation is a DIY used auto parts retail concept allowing customers to pull and purchase used parts from a vast inventory.
Why we expect these perspectives ?
LKQ Corporation's Self Service segment growth of 3.2% is driven by increasing demand for recycled auto parts, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digitalization and e-commerce platforms has improved customer experience, leading to higher sales and market share gains.
Lkq Corporation Products
| Product Range | What is it ? |
|---|---|
| Aftermarket Collision Parts | LKQ Corporation offers a wide range of aftermarket collision parts, including bumpers, hoods, fenders, and other body parts, designed to meet or exceed OEM quality standards. |
| Recycled Parts | LKQ Corporation provides a vast inventory of recycled parts, including engines, transmissions, and other mechanical components, sourced from salvage vehicles. |
| Remanufactured Components | LKQ Corporation offers remanufactured components, such as engines, transmissions, and fuel injectors, rebuilt to OEM specifications. |
| Refurbished Wheels | LKQ Corporation provides refurbished wheels, restored to OEM quality and appearance, for a wide range of vehicle makes and models. |
| Glass and Windshield Repair | LKQ Corporation offers a range of glass and windshield repair services, including windshield replacement, chip repair, and calibration. |
| Paint and Coatings | LKQ Corporation provides a variety of paint and coatings products, including automotive paints, clear coats, and primers. |
LKQ Corporation's Porter Forces
Threat Of Substitutes
LKQ Corporation faces moderate threat from substitutes, as customers have limited alternatives for replacement parts and accessories. However, the company's strong brand recognition and wide distribution network help mitigate this threat.
Bargaining Power Of Customers
LKQ Corporation's customers have limited bargaining power due to the company's diverse customer base and lack of concentration. Additionally, the company's strong relationships with customers and its ability to offer a wide range of products reduce the bargaining power of customers.
Bargaining Power Of Suppliers
LKQ Corporation's suppliers have moderate bargaining power due to the company's dependence on a few large suppliers. However, the company's strong relationships with suppliers and its ability to negotiate prices help mitigate this threat.
Threat Of New Entrants
The threat of new entrants is low for LKQ Corporation, as the company has a strong brand presence and a large distribution network. Additionally, the company's ability to offer a wide range of products and its strong relationships with suppliers make it difficult for new entrants to compete.
Intensity Of Rivalry
The intensity of rivalry is high in the automotive aftermarket industry, with many competitors vying for market share. However, LKQ Corporation's strong brand recognition, wide distribution network, and ability to offer a wide range of products help the company maintain its competitive position.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 47.76% |
| Debt Cost | 5.05% |
| Equity Weight | 52.24% |
| Equity Cost | 10.58% |
| WACC | 7.94% |
| Leverage | 91.42% |
LKQ Corporation : Quality Control
LKQ Corporation passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| DORM | Dorman Products, Inc. supplies replacement parts and fasteners for passenger cars, light trucks, and medium- and heavy-duty trucks in the automotive aftermarket industry worldwide. It offers original equipment dealer products, … |
| GNTX | Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, and internationally. It operates through … |
| ALSN | Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium-and heavy-duty commercial vehicles, and medium-and heavy-tactical U.S. defense vehicles worldwide. It … |
| BWA | BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through four segments: Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket. The Air Management segment … |
| LEA | Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Allison Transmission Holdings
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BorgWarner
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LKQ
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1-Year Total Return ->
4
Dorman Products
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5
Gentex
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1-Year Total Return ->
6
