LKQ Corporation
Find Ratings ReportsLKQ CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. LKQ CORP has very weak liquidity. Currently, the Quick Ratio is 0.44 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 13.09% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 3501.0 | 3001.0 |
EBITDA ($mil) | 391.0 | 370.0 |
EBIT ($mil) | 291.0 | 303.0 |
Net Income ($mil) | 177.0 | 194.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 299.0 | 278.0 |
Total Assets ($mil) | 15079.0 | 12038.0 |
Total Debt ($mil) | 5638.0 | 3935.0 |
Equity ($mil) | 6167.0 | 5453.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 40.36 | 41.02 |
EBITDA Margin | 11.16 | 12.32 |
Operating Margin | 8.31 | 10.1 |
Sales Turnover | 0.92 | 1.06 |
Return on Assets | 6.2 | 9.54 |
Return on Equity | 15.27 | 20.96 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.47 | 1.87 |
Debt/Capital | 0.48 | 0.42 |
Interest Expense | 65.0 | 27.0 |
Interest Coverage | 4.48 | 11.22 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 267.2 | 267.3 |
Div / share | 0.3 | 0.28 |
EPS | 0.69 | 0.72 |
Book value / share | 23.08 | 20.4 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1736410.0 | 1697246.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 24.06 for the Merchant Wholesalers, Durable Goods subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 2.23 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 6.83. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, LKQ CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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LKQ 14.60 | Peers 24.06 | LKQ 10.12 | Peers 17.73 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. LKQ is trading at a significant discount to 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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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LKQ 11.55 | Peers 24.12 | LKQ 0.95 | Peers 3.31 | |||||||||||||||||||||
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 significant 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. |
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Price/Book |
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Earnings Growth |
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LKQ 2.23 | Peers 6.83 | LKQ -14.15 | Peers -19.81 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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LKQ 0.99 | Peers 1.87 | LKQ 8.37 | Peers -0.87 | |||||||||||||||||||||
Discount. 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 discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. LKQ has a sales growth rate that significantly exceeds its peers. |
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