LKQ : NASDAQ : Consumer Goods
$33.34 | %
Today's Range: 32.99 - 33.38
Avg. Daily Volume: 3,127,300
07/22/16 - 4:00 PM ET

Financial Analysis


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 ($mil)1921.481773.91
EBITDA ($mil)233.65223.08
EBIT ($mil)200.48192.41
Net Income ($mil)107.73107.1


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)229.22175.49
Total Assets ($mil)7356.865522.47
Total Debt ($mil)2818.561734.64
Equity ($mil)3234.412779.91


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin39.6539.5
EBITDA Margin12.1512.57
Operating Margin10.4310.85
Sales Turnover1.01.25
Return on Assets5.766.95
Return on Equity13.113.81
Debt Q1 FY16 Q1 FY15
Current Ratio2.853.03
Debt/Capital0.470.38
Interest Expense14.5914.91
Interest Coverage13.7412.91


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)306.52304.16
Div / share0.00.0
EPS0.350.35
Book value / share10.559.14
Institutional Own % n/a n/a
Avg Daily Volume3118397.01869445.0

Valuation


BUY. LKQ CORP's P/E ratio indicates a discount compared to an average of 24.69 for the Distributors industry and a value on par with the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 3.13 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.45. 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 23.90 Peers 24.69   LKQ 21.05 Peers 19.11

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LKQ 15.82 Peers 21.98   LKQ 0.79 Peers 5.32

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 3.13 Peers 5.45   LKQ 10.40 Peers 2.09

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 1.38 Peers 1.13   LKQ 6.56 Peers 3.46

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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