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LKQ (LKQ) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Consumer Cyclical•Auto Parts
C
AverageMetricSide Score: 45/100
ProfitabilityProfit13/30
GrowthGrowth6/25
Balance SheetBalance15/25
Cash QualityCash11/20
Price & Volume
Market Cap $6.78B

LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. The company operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. It offers bumper covers, automotive body panels, and lights, as well as paint and paint related consumables for refinishing vehicles; mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; and lights and bumper assemblies. The company also provides scrap metal and other materials to metals recyclers; precious metals, such as catalytic converters; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, marine electronics, cargo management products, wheels, tires, and suspension products. It serves collision and mechanical repair shops, new and used car dealerships, and retail customers. The company operates in the United States, Canada, Germany, the United Kingdom, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Austria, Poland, Slovakia, France, and other European countries. LKQ Corporation was incorporated in 1998 and is headquartered in Antioch, Tennessee.

Moat Signals

Competitive analysis based on 64 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~7.6% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

ROE is positive at ~10.6% on average, adequate but below the threshold typically associated with wide moats.

Cash Generation

Moderate Moat

6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Weak Moat

Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.

Risk Signals

Data-driven red flags and warnings across 64 quarters

Some Concerns

Margin Pressure

Red Flag

Operating margins dropped 21.5% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Healthy

FCF covers net income by 1.2x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

D/E ratio is 0.5 — conservative capital structure with low financial risk.

Revenue Decline

Red Flag

Revenue declined in 5 of the last 7 quarters — persistent contraction signals a fundamental problem.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Share Dilution

Healthy

Shares decreased 3.7% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$13.66B
3.2%
Q. Revenue
$3.47B
TTM EBITDA
$1.28B
17.6%
TTM Op. Income
$923.00M
22.9%
Q. Op. Income
$217.00M
TTM Net Income
$518.00M
26.4%
Q. Net Income
$79.00M
EPS
$0.31
Shares Out.
$255.40M
1.4%
$13.66B in TTM revenue declined 3.2% YoY, reaching $3.47B last quarter. TTM EBITDA of $1.28B and TTM operating income of $923.00M shows growth is flowing through. Net income of $518.00M TTM confirms the company is converting revenue into profit. Revenue is contracting — assess whether this is cyclical or structural.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
38.4%
3.5%
EBITDA Margin
8.8%
Op. Margin
6.3%
24.5%
Net Margin
2.3%
53.3%
Op. margin of 6.3% is down 2.0% YoY — costs are rising relative to revenue. Net margin at 2.3% and gross margin of 38.4% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
13.1x
P/S Ratio
0.5x
P/B Ratio
1.0x
At 13.1x P/E, the stock trades below market averages — potentially undervalued. P/S of 0.5x and P/B of 1.0x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$15.14B
Cash
$335.00M
Long-Term Debt
$3.31B
Book Value
$6.47B
D/E Ratio
0.5
Debt/EBITDA
10.9
With $15.14B in assets and $3.31B in long-term debt, the D/E of 0.5and book value of $6.47B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$-56.00M
Free Cash Flow
$-96.00M
68.4%
FCF Margin
-0.7%
FCF / Net Income
-1.2
FCF of $-96.00M on $-56.00M in operating cash flow. The FCF / Net Income ratio of -0.2x shows cash consumption — the business is not yet self-funding.

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