LKQ (LKQ) AI Stock Analysis

• Market Cap: $7.92B
• Dividend Yield: 3.85%
• Average Volume (3M): 2.82M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.44
• Revenue Growth: -3.71%
• EPS Growth: -0.27%
• Country: US
• Employees: 47,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.84
• Shares Outstanding: 255,966,000
• 10 Day Avg. Volume: 3,832,767
• 30 Day Avg. Volume: 2,821,632
• PEG Ratio: -0.56
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 11.96
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: 8.29
• 1Y Price Target: $41.42
• Price Target Upside: 33.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 3.09
• Revenue Forecast (FY): $13.77B

• Rating: 70 Neutral
• Price Target: $34.00 ▲(9.54% Upside)

LKQ's overall stock score reflects a stable financial position with some challenges. The most significant factor is the company's financial performance, which shows declining margins and negative revenue growth. Technical analysis indicates a mixed outlook, with short-term bullish momentum but longer-term challenges. Valuation is attractive, offering a reasonable P/E ratio and a solid dividend yield. The earnings call provided some positive updates, but ongoing challenges in key markets remain a concern.

Positive Factors

Cash Flow Management

Strong cash flow management ensures LKQ can finance operations and invest in growth, supporting long-term business stability.

Cost-Cutting Initiatives

Effective cost-cutting enhances margin performance and operational efficiency, positioning LKQ for improved profitability.

Portfolio Simplification

Simplifying the portfolio allows LKQ to focus on core operations, streamline costs, and strengthen its balance sheet through debt repayment.

Negative Factors

Revenue Decline

Declining revenues and earnings pressure indicate challenges in maintaining growth, potentially impacting long-term market position.

European Market Challenges

Economic and competitive pressures in Europe pose risks to LKQ's market share and profitability in a key region.

Rising Debt Levels

Increasing debt can strain financial flexibility and cash flow, potentially limiting LKQ's ability to invest in future growth.

LKQ Business Overview & Revenue Model

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.

How the Company Makes Money

LKQ generates revenue through multiple key streams, primarily by selling alternative automotive parts and services. The company's main revenue sources include the sale of used and refurbished parts, aftermarket components, and recycled materials. Additionally, LKQ earns income from its logistics and distribution services, which allow it to efficiently manage inventory and deliver products to customers. Significant partnerships with automotive repair shops, insurers, and auto manufacturers also enhance its market presence and contribute to revenue growth. The increasing demand for cost-effective and sustainable automotive parts further supports LKQ's business model.

LKQ Financial Statement Overview

Summary

LKQ's financial performance is stable but shows areas of concern. The income statement reflects declining margins and negative revenue growth, which could impact future profitability. The balance sheet is solid with manageable leverage, but the return on equity has decreased. Cash flow generation is robust, although there are signs of pressure in converting earnings to cash.

Income Statement

LKQ's income statement shows a mixed performance. The gross profit margin is strong at around 39%, indicating efficient cost management. However, the net profit margin has declined to approximately 5% in the TTM, suggesting pressure on net earnings. Revenue growth has been negative recently, which is a concern for future top-line expansion. The EBIT and EBITDA margins have also decreased, reflecting potential operational challenges.

Balance Sheet

The balance sheet of LKQ is relatively stable. The debt-to-equity ratio has improved slightly to 0.84 in the TTM, indicating a manageable level of leverage. Return on equity has decreased to 11%, which is lower than previous years but still reasonable. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

LKQ's cash flow statement shows some positive signs with a 6.8% growth in free cash flow in the TTM. However, the operating cash flow to net income ratio has decreased, indicating potential challenges in converting earnings into cash. The free cash flow to net income ratio remains strong at 74.6%, highlighting good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.96B	14.36B	13.87B	12.79B	13.09B	11.63B
Gross Profit	5.46B	5.61B	5.58B	5.22B	5.32B	4.59B
EBITDA	1.58B	1.63B	1.77B	1.86B	1.75B	1.31B
Net Income	697.00M	690.00M	936.00M	1.15B	1.09B	638.42M
Balance Sheet
Total Assets	15.60B	14.96B	15.08B	12.04B	12.61B	12.36B
Cash, Cash Equivalents and Short-Term Investments	289.00M	234.00M	299.00M	278.00M	274.00M	312.15M
Total Debt	5.50B	5.61B	5.64B	3.94B	4.22B	4.29B
Total Liabilities	9.05B	8.92B	8.90B	6.55B	6.79B	6.67B
Stockholders Equity	6.55B	6.02B	6.17B	5.45B	5.77B	5.66B
Cash Flow
Free Cash Flow	722.00M	810.00M	998.00M	1.03B	1.07B	1.27B
Operating Cash Flow	968.00M	1.12B	1.36B	1.25B	1.37B	1.44B
Investing Cash Flow	-250.00M	-406.00M	-2.44B	172.00M	-418.76M	-165.89M
Financing Cash Flow	-792.00M	-746.00M	1.10B	-1.39B	-985.13M	-1.51B

LKQ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LKQ, the sentiment is Positive. The current price of 31.04 is above the 20-day moving average (MA) of 30.58, above the 50-day MA of 30.80, and below the 200-day MA of 35.93, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.12 is Neutral, neither overbought nor oversold. The STOCH value of 37.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LKQ.

LKQ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DORM	75 Outperform	$4.10B	16.58	18.19%	―	7.94%	34.84%
LEA	75 Outperform	$5.61B	13.23	8.96%	2.85%	-1.90%	-13.86%
ALV	74 Outperform	$9.25B	12.58	31.09%	2.40%	0.84%	26.17%
APTV	73 Outperform	$17.84B	64.79	3.25%	―	2.16%	-85.91%
BWA	72 Outperform	$9.67B	72.46	2.24%	1.09%	0.08%	-83.69%
LKQ	70 Neutral	$7.92B	11.49	10.87%	3.85%	-3.71%	-0.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

LKQ Corporate Events

LKQ Corporation Reports Q3 2025 Earnings and Strategic Updates

LKQ Corporation is a prominent provider of alternative and specialty parts for vehicle repair and customization, operating across North America, Europe, and Taiwan. The company offers a wide range of OEM recycled and aftermarket parts, replacement systems, and services for automobiles, trucks, and recreational vehicles.

LKQ Completes Sale of Self Service Segment

On October 1, 2025, LKQ Corporation announced the completion of its sale of the Self Service segment, known as ‘Pick Your Part,’ to an affiliate of Pacific Avenue Capital Partners, LLC for $410 million. This strategic move aims to simplify LKQ’s business portfolio, reduce costs, and strengthen its balance sheet through debt repayment. The company will report the Self Service segment as discontinued operations in its financial statements starting from the third quarter of 2025.

The most recent analyst rating on (LKQ) stock is a Buy with a $42.50 price target. To see the full list of analyst forecasts on LKQ stock, see the LKQ Stock Forecast page.

LKQ Announces Sale of ‘Pick Your Part’ Segment

On August 25, 2025, LKQ Corporation announced a definitive agreement to sell its Self Service segment, known as ‘Pick Your Part,’ to an affiliate of Pacific Avenue Capital Partners, LLC for $410 million. This transaction is part of LKQ’s strategic plan to simplify its corporate structure and focus on core segments, aiming to enhance its market positioning and shareholder value. The sale, expected to close in the fourth quarter of 2025, will allow LKQ to strengthen its balance sheet through debt repayment.

The most recent analyst rating on (LKQ) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on LKQ stock, see the LKQ Stock Forecast page.

LKQ Announces New Chairman Amid Leadership Transition

On August 20, 2025, LKQ Corporation announced that Guhan Subramanian would step down as Chairman of the Board, with John Mendel appointed as his successor effective immediately. Subramanian will retire from the board on January 1, 2026. This leadership change is part of LKQ’s efforts to enhance corporate governance and strategic priorities, with Mendel bringing extensive experience from the automotive industry. The transition is expected to support LKQ’s focus on simplifying its business portfolio, implementing a leaner operating model, and investing in growth opportunities, aiming to capture greater market share and enhance shareholder value.

The most recent analyst rating on (LKQ) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on LKQ stock, see the LKQ Stock Forecast page.