LKQ Corp (LKQ) Stock Analysis
Verdict: WATCH (do not buy)
Depressed valuation (P/B 0.91x, FCF yield 10.7%) is outweighed by 3 consecutive earnings misses and net leverage of 3.96x.
Investment score: 44/100
Analysis as of
7-factor investment score
- Valuation: 65/100 (weight 20%)
- Financial Health: 40/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 25/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
LKQ Corp opportunities and risks
What speaks for LKQ
- Deep Asset-Backed Valuation Discount
What speaks against LKQ
- Elevated Debt Leverage Burden
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| LKQ | 12.8x | 0.4x | 8.6x | 37.7% | 3.4% | 10.7% |
| GPC | 505.0x | 0.7x | 32.8x | 36.2% | 0.1% | 4.2% |
| POOL | 15.4x | 1.1x | 12.9x | 29.6% | 7.4% | 10.0% |
| GCT | 12.4x | 1.3x | 11.0x | 24.0% | 10.6% | 8.1% |
| GOLD | 15.3x | 0.1x | 3.9x | 1.8% | 0.3% | 93.9% |
| WEYS | 12.1x | 1.5x | 6.9x | 49.1% | 12.4% | 10.8% |
| Peer median | 15.3x | 1.1x | 11.0x | 29.6% | 7.4% | 10.0% |
Frequently asked questions about LKQ Corp (LKQ)
Is LKQ stock a good investment?
The TradeMates model rates LKQ Corp as WATCH (do not buy) with an investment score of 44/100. Depressed valuation (P/B 0.91x, FCF yield 10.7%) is outweighed by 3 consecutive earnings misses and net leverage of 3.96x. This is algorithmic model output, not personal investment advice.
Is LKQ stock a buy?
The TradeMates model verdict for LKQ is WATCH (do not buy) with an investment score of 44/100. Treat this as a model signal to review, not a personal buy recommendation.