LKQ : NASDAQ : Consumer Goods
$34.29 | %
Today's Range: 33.51 - 34.3
Avg. Daily Volume: 2070300.0
12/09/16 - 4:00 PM ET

Financial Analysis


LKQ CORP's gross profit margin for the third 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 1.07 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 12.86% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)2386.831831.73
EBITDA ($mil)270.51204.3
EBIT ($mil)211.02171.32
Net Income ($mil)122.69101.35


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)271.85137.09
Total Assets ($mil)8203.955704.03
Total Debt ($mil)3264.171607.23
Equity ($mil)3427.283036.71


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin37.2739.03
EBITDA Margin11.3311.15
Operating Margin8.849.35
Sales Turnover1.041.25
Return on Assets5.767.16
Return on Equity13.7913.45
Debt Q3 FY16 Q3 FY15
Current Ratio2.872.99
Debt/Capital0.490.35
Interest Expense27.0615.08
Interest Coverage7.811.36


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)307.49305.47
Div / share0.00.0
EPS0.40.33
Book value / share11.159.94
Institutional Own % n/a n/a
Avg Daily Volume2014473.01827773.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.83 for the Distributors industry and a discount compared to the S&P 500 average of 25.37. To use another comparison, its price-to-book ratio of 2.93 indicates valuation on par with the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.34. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, LKQ CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LKQ 21.21 Peers 22.83   LKQ 17.85 Peers 16.34

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.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LKQ 15.86 Peers 21.64   LKQ 0.68 Peers 0.94

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LKQ 2.93 Peers 5.34   LKQ 15.78 Peers 4.41

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LKQ 1.18 Peers 1.08   LKQ 19.36 Peers 8.39

Average. 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 valuation on par with 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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