LKQ Stock Analysis — LKQ Corporation
Sector: Industrials
AI Verdict
LKQ trades cheap for the growth you're getting, but the market is skeptical that the 51.6% EPS jump will materialize given weak revenue momentum and a structurally low multiple.
Competitive Moat
LKQ operates one of the largest networks for alternative and recycled auto parts, giving it scale advantages in sourcing, logistics, and distribution. Its broad inventory and established relationships with insurers and repair shops create switching costs that protect market share.
Summary
LKQ is trading at just 8.3x next year's earnings while analysts expect a 51.6% jump in EPS.
Where It Stands
With a forward P/E of 8.3x versus the industrials sector median of 20x and a trailing PEG of 0.22, LKQ is priced well below peers despite high expected growth.
Key Metrics
- Trailing P/E: 12.5x
- Forward P/E: 8.3x
- PEG Ratio: 0.22
- Earnings Growth: +0.5%
- Revenue Growth: -0.0%
- Dividend Yield: 0.05%
- 52-Week High: $39.77
- 52-Week Low: $23.98
Analyst Consensus
11 Buy · 4 Hold · 0 Sell (15 analysts)
Bull Case
Forward EPS growth of 51.6% paired with a forward P/E of 8.3x means you're paying a low price for rapid earnings expansion.
Bear Case
If the P/E reverts to the sector median of 20x only because growth stalls, the current discount could disappear fast, especially with trailing revenue down 1.4%.
Catalyst to Watch
Watch for quarterly earnings — any sign that EPS growth falls short of the 51.6% target could force a rerating.