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LKQ Corporation (LKQ) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated today

LKQ Corporation

LKQMarket cap $5.57BPrice $22.0

Country🇺🇸United States

SectorConsumer

IndustryDistributors

LKQ recycles and resells alternative vehicle parts—recycled, aftermarket, and refurbished—to repair shops and insurers across North America and Europe. It's the world's largest alternative auto parts distributor, keeping millions of cars running without ever touching a dealership.

In Bastion Portfolios?

52W Return-24%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+2%4

Revenue Forecast

Rev CAGR (1y)-1%2

Rev CAGR (3y)+0%1

Rev CAGR (5y)+3%2

Earnings Forecast

EPS Growth Y+1+4%5

EPS Growth Y+2+14%7

EPS Growth Y+3+3%4

Quality

Margins

EBIT Margin7%3

Net Income Margin3%3

Free Cash Flow Margin5%4

Debt

Net Debt/EBITDA2.63

Efficiency

ROE7%3

ROA3%5

Earnings Stability55

GEAR+WEAK22

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)810

P/E Ratio (Forward 3y)79

P/BV0.910

EV Multiples

EV/EBITDA Fwd88

EV/EBIT Fwd118

Yield

Free Cash Flow Yield11.2%9

Dividend Yield5.5%10

Momentum

Short term

1 month return-9%3

3 month return-12%3

YTD return-25%2

Mid term

Price vs 52wHigh61%2

1 year return-22%2

Long term

3 year return-52%1

5 year return-52%1

Risk Shield

Price Risk

Beta0.67

Volatility36%5

Free Cash Flow

Free Cash Flow Margin5%4

Free Cash Flow Yield11.2%9

Quality

ROCE8%5

Earnings Stability55

Net Debt/EBITDA2.63

02Growth

Is it actually growing, and how fast?

LKQLKQ

Revenue FY25$14.4B

GROWTH RATING↗

VERY WEAK8 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+2%4

Revenue, next 1Y-1%2

Revenue, next 3Y, CAGR+0%1

Revenue, next 5Y, CAGR+3%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+4%5

EPS growth, FY27E+14%7

EPS growth, FY28E+3%4

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 2%/yr over the last 3 years and is set to keep growing around 0.4%/yr.

Earnings are set to grow in step with sales (EPS about 4%/yr vs revenue 0.4%/yr).

WEAKNESSES

Growth is the weak spot here, trailing 92% of companies worldwide.

Revenue is set to hold flat over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 3%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK5 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-9%3

3-month return-12%3

YTD return-25%2

MID & LONG-TERM▾SCORE

% of 52-week high61%2

1-year return-22%2

3-year return-52%1

5-year return-52%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-52% over three years and -52% over five), behind 90% of the market.

It's down 22% over the past year, now 39% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-9%), over three months (-12%) and so far this year (-25%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on LKQ Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

LKQLKQ

Revenue FY25$14.4B

GROWTH RATING↗

VERY WEAK8 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+2%4

Revenue, next 1Y-1%2

Revenue, next 3Y, CAGR+0%1

Revenue, next 5Y, CAGR+3%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+4%5

EPS growth, FY27E+14%7

EPS growth, FY28E+3%4

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 2%/yr over the last 3 years and is set to keep growing around 0.4%/yr.

Earnings are set to grow in step with sales (EPS about 4%/yr vs revenue 0.4%/yr).

WEAKNESSES

Growth is the weak spot here, trailing 92% of companies worldwide.

Revenue is set to hold flat over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 3%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK5 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-9%3

3-month return-12%3

YTD return-25%2

MID & LONG-TERM▾SCORE

% of 52-week high61%2

1-year return-22%2

3-year return-52%1

5-year return-52%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-52% over three years and -52% over five), behind 90% of the market.

It's down 22% over the past year, now 39% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-9%), over three months (-12%) and so far this year (-25%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on LKQ Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community