LKQ : NASDAQ : Consumer Goods
$35.88 up 0.08 | 0.24%
Today's Range: 35.67 - 35.96
Avg. Daily Volume: 1,919,900
08/24/16 - 3:59 PM ET

Financial Analysis


LKQ CORP's gross profit margin for the second 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 1.09 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.

During the same period, stockholders' equity ("net worth") has increased by 11.96% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)2450.691838.07
EBITDA ($mil)320.19232.99
EBIT ($mil)262.48201.95
Net Income ($mil)140.74119.72


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)273.2143.42
Total Assets ($mil)8185.945634.54
Total Debt ($mil)3335.461691.44
Equity ($mil)3307.642954.09


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin38.2539.45
EBITDA Margin13.0612.67
Operating Margin10.7110.99
Sales Turnover0.971.25
Return on Assets5.437.07
Return on Equity13.4413.49
Debt Q2 FY16 Q2 FY15
Current Ratio2.823.27
Debt/Capital0.50.36
Interest Expense26.3814.62
Interest Coverage9.9513.81


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)306.79304.44
Div / share0.00.0
EPS0.460.39
Book value / share10.789.7
Institutional Own % n/a n/a
Avg Daily Volume2944240.03059996.0

Valuation


BUY. LKQ CORP's P/E ratio indicates a discount compared to an average of 24.90 for the Distributors industry and a value on par with the S&P 500 average of 25.30. Conducting a second comparison, its price-to-book ratio of 3.29 indicates a premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 5.58. 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 24.46 Peers 24.90   LKQ 18.06 Peers 18.58

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 17.05 Peers 22.60   LKQ 0.75 Peers 5.47

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 3.29 Peers 5.58   LKQ 11.53 Peers 1.80

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 1.37 Peers 1.16   LKQ 13.33 Peers 5.96

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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