LKQ Corporation

Valuation Analysis

About the Company

LKQ Corporation en bref

LKQ Corporation (LKQ) is currently trading at 22,49 € with a market capitalization of 5,7 Md €. The trailing P/E ratio stands at 12.9x, with a forward P/E of 7.76x. The 52-week range spans from 20,90 € to 34,67 €; the current price is 35.1% below the yearly high. Year-over-year revenue growth stands at +4.3%. The net profit margin stands at 3.75%.

💰 Dividende

LKQ Corporation pays an annual dividend of 1,05 € per share, representing a yield of 4.65%. The payout ratio stands at 60%.

📊 Avis des analystes

8 analystes évaluent LKQ Corporation (LKQ) au consensus : Acheter. L'objectif de cours moyen est de 35,58 €, soit un potentiel de +58.19% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 28,77 € à 41,41 €.

LKQ Corporation : la thèse d'investissement en détail

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.

Le scénario haussier

Wall Street consensus sits at Buy with an average price target implying roughly 58.19% 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.

Le scénario baissier

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.

Valorisation en contexte

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 7.9x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

À surveiller

• The forward P/E of 7.76x is meaningfully below the trailing 12.9x — 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 4.65% 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 58.19% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Thèse d'investissement : forces et faiblesses

Aperçu technique

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

Profil de risque

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

Trading Data

💵 Dividend Info

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