📊 LKQ Key Takeaways
Is Lkq Corp. (LKQ) a Good Investment?
LKQ demonstrates financial stability with strong free cash flow generation ($847M) and conservative balance sheet leverage, but faces fundamental headwinds with declining revenues (-1.2% YoY) and deteriorating EPS (-10.3% YoY). The business generates adequate cash but returns on equity (9.3%) and assets (4.0%) are insufficient for a capital-intensive wholesale distribution model.
LKQ delivers resilient profitability and strong free cash generation with conservative leverage and adequate liquidity. However, slight revenue contraction and a double-digit EPS decline point to margin/mix pressure, keeping near-term fundamentals stable but not accelerating.
Why Buy Lkq Corp. Stock? LKQ Key Strengths
- Strong free cash flow of $847M with 6.2% FCF margin demonstrates efficient cash generation
- Conservative capital structure with 0.24x debt-to-equity ratio and $1.6B manageable long-term debt
- Solid operating cash flow of $1.1B supports dividends and debt service with room for flexibility
- Robust free cash flow ($847M) with 6.2% FCF margin
- Conservative balance sheet (D/E 0.24x) and solid current ratio (1.67x)
- Healthy gross margin of 38.6% supporting cash conversion
LKQ Stock Risks: Lkq Corp. Investment Risks
- Revenue contraction of -1.2% YoY indicates market share loss or industry headwinds in automotive aftermarket
- EPS declined -10.3% YoY despite flat net income, signaling per-share dilution or higher share count
- Weak returns on equity (9.3%) and assets (4.0%) indicate capital is not generating acceptable returns for equity holders
- Quick ratio of 0.58x reveals working capital constraints from inventory-heavy business model
- Net margins of 4.5% are thin for wholesale distribution, leaving little room for operational errors
- Revenue down 1.2% YoY indicating demand or pricing pressure
- EPS down 10.3% YoY despite flat net income, implying dilution/margin headwinds
- Low quick ratio (0.58x) reflects inventory intensity and working capital risk
Key Metrics to Watch
- Revenue growth trajectory - stabilization or sustained contraction trends
- Operating margin expansion - ability to reduce costs amid revenue pressure
- Free cash flow sustainability - maintenance of $800M+ annual FCF generation
- Inventory turnover and working capital efficiency - quick ratio improvement
- Return on equity improvement - path to exceed 12% ROE threshold
- Revenue growth trajectory
- Operating margin sustainability
Lkq Corp. (LKQ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Lkq Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LKQ Profit Margin, ROE & Profitability Analysis
LKQ vs Automotive Sector: How Lkq Corp. Compares
How Lkq Corp. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lkq Corp. Stock Overvalued? LKQ Valuation Analysis 2026
Based on fundamental analysis, Lkq Corp. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Lkq Corp. Balance Sheet: LKQ Debt, Cash & Liquidity
LKQ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Lkq Corp.'s revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $3.49 reflects profitable operations.
LKQ Revenue Growth, EPS Growth & YoY Performance
LKQ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.5B | $180.0M | $0.70 |
| Q2 2025 | $3.6B | $186.0M | $0.70 |
| Q1 2025 | $3.5B | $158.0M | $0.59 |
| Q3 2024 | $3.6B | $192.0M | $0.73 |
| Q2 2024 | $3.4B | $186.0M | $0.70 |
| Q1 2024 | $3.3B | $158.0M | $0.59 |
| Q3 2023 | $3.1B | $208.0M | $0.78 |
| Q2 2023 | $3.3B | $282.0M | $1.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lkq Corp. Dividends, Buybacks & Capital Allocation
LKQ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Lkq Corp. (CIK: 0001065696)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LKQ
What is the AI rating for LKQ?
Lkq Corp. (LKQ) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LKQ's key strengths?
Claude: Strong free cash flow of $847M with 6.2% FCF margin demonstrates efficient cash generation. Conservative capital structure with 0.24x debt-to-equity ratio and $1.6B manageable long-term debt. ChatGPT: Robust free cash flow ($847M) with 6.2% FCF margin. Conservative balance sheet (D/E 0.24x) and solid current ratio (1.67x).
What are the risks of investing in LKQ?
Claude: Revenue contraction of -1.2% YoY indicates market share loss or industry headwinds in automotive aftermarket. EPS declined -10.3% YoY despite flat net income, signaling per-share dilution or higher share count. ChatGPT: Revenue down 1.2% YoY indicating demand or pricing pressure. EPS down 10.3% YoY despite flat net income, implying dilution/margin headwinds.
What is LKQ's revenue and growth?
Lkq Corp. reported revenue of $13.7B.
Does LKQ pay dividends?
Lkq Corp. pays dividends, with $310.0M distributed to shareholders in the trailing twelve months.
Where can I find LKQ SEC filings?
Official SEC filings for Lkq Corp. (CIK: 0001065696) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LKQ's EPS?
Lkq Corp. has a diluted EPS of $2.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LKQ a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Lkq Corp. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LKQ stock overvalued or undervalued?
Valuation metrics for LKQ: ROE of 9.3% (sector avg: 12%), net margin of 4.5% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy LKQ stock in 2026?
Our dual AI analysis gives Lkq Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LKQ's free cash flow?
Lkq Corp.'s operating cash flow is $1.1B, with capital expenditures of $216.0M. FCF margin is 6.2%.
How does LKQ compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 4.5% (avg: 6%), ROE 9.3% (avg: 12%), current ratio 1.67 (avg: 1.2).