LKQ LKQ
United StatesConsumer Cyclical · Auto PartsUSD
32.50 USD (+47.5%)
8 analysts
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LKQ Corporation is a leading distributor of vehicle replacement parts and accessories, operating in North America and Europe, selling to repair shops, dealers, and aftermarket customers.
Key points
from its scores- ✓Attractive valuation8.5
- ✓Attractive dividend8.2
- ✓Favourable backdrop7.1
- ✕Weak growth1.6
- ✕Poor share-price trend3.0
AI analysis
bottom line, main risk, context and newsThe cheap valuation and high dividend provide support, but high debt and negative growth warrant caution until signs of stabilization appear.
LKQ trades at an attractive valuation (P/E 12.24, FCF yield 12.99%) and offers a solid dividend (5.45%), but its high debt (ND/EBITDA 3.57) and deteriorating revenue (-3%) and earnings (-29%) weigh on its growth profile and financial health.
The main risk is the high leverage (Net Debt/EBITDA of 3.57) in a rising interest rate environment, which could make refinancing more expensive and limit financial flexibility if the business continues to deteriorate.
Context and risks
No relevant recent news. LKQ's main risk is its high leverage (Net Debt/EBITDA of 3.57) in a rising US interest rate environment, which makes refinancing its debt more expensive and pressures its operating margin (7.01%).
Is LKQ stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 32% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 12.2 | 17.8 | −31% |
| EV / EBITDA | 7.6 | 11.2 | −33% |
| Price / book | 0.9 | 2.9 | −70% |
| Price / sales | 0.4 | 1.3 | −68% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.5 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 32.50 USD, +47.5% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 4.4 (sector 5.7), Growth 1.6 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 12.2
- Forward P/E
- 7.1
- EV / EBITDA
- 7.6
- Price / book
- 0.9
- Price / sales
- 0.4
- PEG
- 0.92
- Market cap
- 5.6B USD
- Enterprise value
- 10.6B USD
Profitability
- ROE
- 7.1%
- ROA
- 4.0%
- ROIC (approx.)
- 8.2%
- Gross margin
- 38.3%
- Operating margin
- 7.0%
- Net margin
- 3.4%
- Free cash flow
- 724.1M USD
- FCF yield
- 13.0%
- Cash conversion
- 52%
Solvency
- Total debt
- 5.3B USD
- Net debt
- 5.0B USD
- Cash
- 301.0M USD
- EBITDA
- 1.4B USD
- Net debt / EBITDA
- 3.57
- Debt / equity
- 82.11
- Current ratio
- 1.58
- Quick ratio
- 0.50
Growth
- Revenue growth
- −3.0%
- Earnings growth
- −29.0%
- EPS (TTM)
- 1.80 USD
- EPS (forward)
- 3.09 USD
Dividend
- Dividend yield
- 5.4%
- Payout
- 66.7%
Risk and market
- Beta
- 0.86
- Analyst consensus
- Buy (8)
- Target price
- 32.50 USD
- 52-week range
- 21.17 – 37.13
Recent news
All LKQ news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about LKQ
Is LKQ stock cheap or expensive?
On P/E and EV / EBITDA, it trades 32% below the Consumer Cyclical median on average. Valuation score: 8.5 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 32.50 USD, +47.5% versus the price. This is not investment advice.
What score does LKQ get on MeridIAn Screener?
It scores 5.7 out of 10, rank 1,259 of 2,130 (better than 39% of the companies analysed). Its strongest category is Valuation (8.5) and its weakest, Growth (1.6). Analysis of 08/10/2026.
What is LKQ's P/E ratio?
Its P/E is 12.2: the share price equals 12.2 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 7.1.
How much is LKQ worth on the stock market?
Its market capitalisation is 5.6B USD and its enterprise value, debt included, is 10.6B USD.
How much debt does LKQ have?
Its net debt (debt minus cash) is 5.0B USD. That is 3.57 times its EBITDA; the Consumer Cyclical median is 1.91.
Does LKQ pay a dividend?
Yes: its dividend yield is 5.45% and it pays out 67% of its earnings.
How has LKQ stock performed over the last year?
It has fallen 19.8% over the last year, excluding dividends. Over the last 52 weeks it has traded between 21.17 and 37.13 USD. Past performance does not guarantee future results.
What do analysts think of LKQ?
8 analysts cover it; their average recommendation is “Buy” and their average target is 32.50 USD (+47.5% versus the price). It is an estimate, not market data.