LKQ Stock Analysis — LKQ Corporation
Sector: Industrials
AI Verdict
LKQ trades at 10.2x next year’s earnings with 30.6% growth expected—cheap for the growth you’re getting if its distribution moat keeps margins up, but the market is skeptical given recent revenue declines.
Competitive Moat
LKQ operates a vast distribution network for aftermarket and recycled auto parts, making it the go-to supplier for collision repair shops and insurers. Its scale and logistics infrastructure create a cost advantage and make it hard for smaller competitors to match inventory breadth or delivery speed.
Summary
LKQ is notable for trading at just 10.2x forward earnings while analysts expect a 30.6% jump in EPS next year.
Where It Stands
LKQ's forward P/E of 10.2x is half the industrials sector median of 20x, despite analyst consensus for 30.6% forward EPS growth and a trailing PEG of 0.44.
Key Metrics
- Trailing P/E: 13.3x
- Forward P/E: 10.2x
- PEG Ratio: 0.44
- Earnings Growth: +0.3%
- Revenue Growth: -0.0%
- Dividend Yield: 0.04%
- 52-Week High: $42.67
- 52-Week Low: $27.64
Analyst Consensus
11 Buy · 4 Hold · 0 Sell (15 analysts)
Bull Case
With a 30.6% forward EPS growth forecast and a 10.2x forward P/E, the stock is cheap for the growth on offer.
Bear Case
Trailing revenue shrank -3.1% year-over-year, so if the P/E moves up to the sector median of 20x without a real turnaround, the stock could look expensive fast.
Catalyst to Watch
Watch for quarterly earnings that confirm the forecasted EPS growth, as any miss could break the low-PEG thesis.