LKQ
LKQ CORP
Next earnings Jul 23, 2026 · consensus $0.72 EPS, $3.51B rev
Last earnings +3.0% on 2026-04-30
$26.55
▲ +1.65%$26.55▼ -25.47%
over 1Y
L $24.26H $37.63
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+1.6%
1W-0.7%
1M+3.5%
3M-4.7%
YTD-9.7%
1Y-25.5%
Buy
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 15 analysts
Buy
Cheap alt-auto-parts distributor at 11x earnings with a Board-initiated strategic review — including a potential sale — as a clear catalyst.
Diluted EPS (FY2025) $2.35 · FY2025
The read
The fundamentals carry the rating, but the price is rich (~29% above our fair-value estimate) — a quality-at-a-price call. The case rests on the business, not the entry; patient buyers may wait for a pullback.
LKQ is the leading global distributor of alternative (aftermarket, recycled, refurbished) vehicle replacement parts across North America, Europe and Specialty. FY2025 was soft: revenue fell 1.2% to $13.7B, operating income declined 13.3% to $993M, and net income dropped 12.3% to $608M (EPS -10.3% to $2.35), continuing a multi-year earnings slide from $1.15B (FY2022) as demand softened and margins compressed. The MD&A cites the pressures clearly — weak vehicle-owner spending, inflation, tariffs and intense competition including online marketplaces.
What changes the picture is the valuation combined with a concrete corporate catalyst. The stock trades at just 11.0x earnings and 0.5x sales, an unusually low multiple for a market-leading distributor that still generates $1.06B of operating cash flow, pays a $310M dividend and grew equity 8.6% to $6.54B. Critically, management is actively pursuing value-unlocking actions: it 'commenced a process to explore the potential sale of our Specialty segment,' and on January 26, 2026 'our Board announced it has initiated a comprehensive review of strategic alternatives to enhance shareholder value... including a potential sale of the Company.' That review is a real, near-term catalyst that could surface value well above the current depressed multiple.
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 4:53 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $13.1B | $12.8B | $13.3B | $13.8B | $13.7B |
| Gross profit | $5.32B | $5.22B | $5.35B | $5.38B | $5.26B |
| Operating income | $1.47B | $1.58B | $1.32B | $1.15B | $993M |
| Net income | $1.09B | $1.15B | $938M | $693M | $608M |
| Diluted EPS | $3.66 | $4.13 | $3.49 | $2.62 | $2.35 |
| Net margin | 8.3% | 9.0% | 7.1% | 5.0% | 4.5% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$6.50B
EV / EBITDA4.6
EV / Sales0.5
EV / FCF7.7
P / FCF8.0
PEG (trailing)—
Earnings yield9.0%
FCF yield12.5%
Quality & risk
ROIC (est.)11.9%
Free cash flow$847M
Total debt$52.9M
Net cash$266M
Piotroski F-Score4/8
Capital returns
Buyback yield2.4%
Dividend yield (est.)4.6%
Shareholder yield6.9%
Shares Δ YoY-1.6%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsSome governance/structural items recently, but no outright red flags.
Recent filings
all on EDGAR ↗SDFiling2026-05-27open ↗SCHEDULE 13G/AFiling2026-05-12open ↗4Period ending 2026-05-062026-05-08open ↗4Period ending 2026-05-062026-05-08open ↗4Period ending 2026-05-062026-05-08open ↗4Period ending 2026-05-062026-05-08open ↗4Period ending 2026-05-062026-05-08open ↗4Period ending 2026-05-062026-05-08open ↗4Period ending 2026-05-062026-05-08open ↗4Period ending 2026-05-062026-05-08open ↗8-KPeriod ending 2026-05-062026-05-08open ↗10-QPeriod ending 2026-03-312026-04-30open ↗
Frequently asked
- Is LKQ CORP (LKQ) a buy?
- LKQ currently carries a Buy rating with 3/5 conviction, derived from its latest SEC filings. Cheap alt-auto-parts distributor at 11x earnings with a Board-initiated strategic review — including a potential sale — as a clear catalyst.
- What is LKQ's fair value?
- A Modified-Graham model based on LKQ's SEC fundamentals estimates a fair value of about $18.98. It is an estimate from reported earnings, not a price target.
- Is LKQ overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, LKQ currently appears overvalued relative to its SEC-grounded earnings power.
- What is LKQ CORP's quality score?
- LKQ scores 59.33181809404394/100 (grade C) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001065696, latest 10-Q filed 2026-04-30) · EODHD · Proprietary analysis · as of 6/21/2026, 8:53:48 PM.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.