LKQ : NASDAQ : Consumer Goods
$32.27 | %
Today's Range: 31.98 - 32.32
Avg. Daily Volume: 2042100.0
06/23/17 - 4:00 PM ET

Financial Analysis


LKQ CORP's gross profit margin for the first quarter of its fiscal year 2017 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, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 11.51% 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 FY17 Q1 FY16
Net Sales ($mil)2342.841921.48
EBITDA ($mil)287.28233.65
EBIT ($mil)238.62200.48
Net Income ($mil)136.28112.17


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)264.61229.22
Total Assets ($mil)8122.257356.86
Total Debt ($mil)3025.272818.56
Equity ($mil)3606.873234.41


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin39.739.65
EBITDA Margin12.2612.15
Operating Margin10.1910.43
Sales Turnover1.111.0
Return on Assets6.05.82
Return on Equity13.4313.24
Debt Q1 FY17 Q1 FY16
Current Ratio2.862.85
Debt/Capital0.460.47
Interest Expense23.9914.59
Interest Coverage9.9513.74


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)308.28306.52
Div / share0.00.0
EPS0.450.37
Book value / share11.710.55
Institutional Own % n/a n/a
Avg Daily Volume2038907.02341152.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.69 for the Distributors industry and a discount compared to the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 2.74 indicates a discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 6.57. 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 20.72 Peers 22.69   LKQ 14.60 Peers 23.39

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.

 

Discount. 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 significant discount 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 15.29 Peers 20.00   LKQ 0.76 Peers 2.47

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 2.74 Peers 6.57   LKQ 10.71 Peers 5.44

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 1.10 Peers 1.07   LKQ 22.68 Peers 11.03

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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