LKQ Corporation

Valuation Analysis

About the Company

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, such as catalyt

LKQ Corporation Stock at a Glance

LKQ Corporation (LKQ) is currently trading at $26.20 with a market capitalization of $6.7B. The trailing P/E ratio stands at 13.1x, with a forward P/E of 7.88x. The 52-week range spans from $23.98 to $39.77; the current price is 34.1% below the yearly high. Year-over-year revenue growth stands at +4.3%. The net profit margin stands at 3.75%.

💰 Dividend

LKQ Corporation pays an annual dividend of $1.20 per share, representing a yield of 4.58%. The payout ratio stands at 60%.

📊 Analyst Rating

8 analysts rate LKQ Corporation (LKQ) on consensus: Buy. The average price target is $40.81, implying +55.77% from the current price. Analyst price targets range from $33.00 to $47.50.

LKQ Corporation: The Investment Case in Detail

LKQ Corporation (LKQ) operates in the Consumer Cyclical — specifically Auto Parts — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Wall Street consensus sits at Buy with an average price target implying roughly 55.77% upside from current levels — analyst sentiment is firmly constructive. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue growth has slowed to just 4.3%, which is below nominal GDP — the business is no longer outgrowing the broader economy. With a net margin of just 3.75%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss.

Valuation in Context

With a PEG ratio of 0.92, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 7.89x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 7.88x is meaningfully below the trailing 13.1x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The dividend yield near 4.58% combined with a payout ratio of 60% leaves room for further hikes — a track record of consecutive raises is a strong income signal.
• The analyst consensus price target implies 55.77% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (6.17%).

Trading Data

💵 Dividend Info

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