LKQ CORP's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. LKQ CORP has average liquidity. Currently, the Quick Ratio is 1.06 which shows that technically this company has the 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 16.34% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||1921.48||1773.91|
|Net Income ($mil)||107.73||107.1|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||229.22||175.49|
|Total Assets ($mil)||7356.86||5522.47|
|Total Debt ($mil)||2818.56||1734.64|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||39.65||39.5|
|Return on Assets||5.76||6.95|
|Return on Equity||13.1||13.81|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||306.52||304.16|
|Div / share||0.0||0.0|
|Book value / share||10.55||9.14|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1930602.0||1494228.0|
BUY. The current P/E ratio indicates a premium compared to an average of 23.80 for the Distributors industry and a value on par with the S&P 500 average of 23.99. Conducting a second comparison, its price-to-book ratio of 3.12 indicates a premium versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 5.63. 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 23.83||Peers 23.80||LKQ 21.48||Peers 17.48|
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 16.20||Peers 21.19||LKQ 0.89||Peers 4.21|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
LKQ is trading at a discount to 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 3.12||Peers 5.63||LKQ 10.40||Peers 7.92|
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 significant 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 1.37||Peers 1.12||LKQ 6.56||Peers 3.00|
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 premium to its industry on this measurement.
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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