LKQ CORP's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. LKQ CORP has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 21.74% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||1709.13||1251.75|
|Net Income ($mil)||104.88||75.72|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||109.56||161.59|
|Total Assets ($mil)||5498.85||4218.32|
|Total Debt ($mil)||1951.32||1376.48|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||39.33||40.84|
|Return on Assets||6.56||6.55|
|Return on Equity||13.86||12.93|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||302.19||299.8|
|Div / share||0.0||0.0|
|Book value / share||8.61||7.13|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1682843.0||1820070.0|
BUY. LKQ CORP's P/E ratio indicates a premium compared to an average of 21.58 for the Distributors industry and a premium compared to the S&P 500 average of 18.06. To use another comparison, its price-to-book ratio of 3.05 indicates a premium versus the S&P 500 average of 2.49 and a discount versus the industry average of 4.05. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. The valuation analysis reveals that, LKQ CORP seems to be trading at a premium to investment alternatives within the industry.
|LKQ 22.28||Peers 21.58||LKQ 21.41||Peers 17.71|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
LKQ is trading at a valuation on par with its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
LKQ is trading at a premium to its peers.
|LKQ 15.56||Peers 19.97||LKQ 0.69||Peers 2.86|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
LKQ is trading at a valuation on par with its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
LKQ trades at a significant discount to its peers.
|LKQ 3.05||Peers 4.05||LKQ 28.26||Peers 10.52|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
LKQ is trading at a discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
LKQ is expected to have an earnings growth rate that significantly exceeds its peers.
|LKQ 1.34||Peers 1.03||LKQ 31.27||Peers 16.35|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
LKQ is trading at a significant premium to its industry.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
LKQ has a sales growth rate that significantly exceeds its peers.
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