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LKQ

DB:LKQ1
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LKQ1
DB
$6B
Market Cap
  1. Home
  2. DE
  3. Retail
Company description

LKQ Corporation, together with its subsidiaries, distributes replacement parts, components, and systems used in the repair and maintenance of vehicles. The last earnings update was 36 days ago. More info.


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  • LKQ has significant price volatility in the past 3 months.
LKQ1 Share Price and Events
7 Day Returns
-13.9%
DB:LKQ1
-1%
Europe Retail Distributors
-2.7%
DE Market
1 Year Returns
-33%
DB:LKQ1
-16.6%
Europe Retail Distributors
-20.4%
DE Market
LKQ1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LKQ (LKQ1) -13.9% -32.6% -44.9% -33% -33.9% -26.9%
Europe Retail Distributors -1% -23.4% -33.3% -16.6% -32.4% -21.3%
DE Market -2.7% -18.4% -26.7% -20.4% -25.9% -30.4%
1 Year Return vs Industry and Market
  • LKQ1 underperformed the Retail Distributors industry which returned -16.6% over the past year.
  • LKQ1 underperformed the Market in Germany which returned -20.4% over the past year.
Price Volatility
LKQ1
Industry
5yr Volatility vs Market

LKQ1 Value

 Is LKQ undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of LKQ to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LKQ.

DB:LKQ1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:LKQ1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Retail Distributors Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.724 (1 + (1- 21%) (95.26%))
1.181
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.181 * 5.44%)
6.03%

Discounted Cash Flow Calculation for DB:LKQ1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for LKQ is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:LKQ1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.03%)
2020 753.25 Analyst x5 710.39
2021 743.06 Analyst x4 660.92
2022 826.50 Analyst x2 693.30
2023 871.00 Analyst x2 689.06
2024 923.00 Analyst x2 688.65
2025 956.31 Est @ 3.61% 672.91
2026 979.34 Est @ 2.41% 649.91
2027 994.71 Est @ 1.57% 622.55
2028 1,004.47 Est @ 0.98% 592.89
2029 1,010.20 Est @ 0.57% 562.35
Present value of next 10 years cash flows $6,542.00
DB:LKQ1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,010.20 × (1 + -0.39%) ÷ (6.03% – -0.39%)
$15,667.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,667.03 ÷ (1 + 6.03%)10
$8,721.39
DB:LKQ1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,542.00 + $8,721.39
$15,263.39
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $15,263.39 / 307.69
$49.61
DB:LKQ1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:LKQ1 represents 0.94004x of NasdaqGS:LKQ
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.94004x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 49.61 x 0.94004
€46.63
Value per share (EUR) From above. €46.63
Current discount Discount to share price of €17.40
= -1 x (€17.40 - €46.63) / €46.63
62.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price LKQ is available for.
Intrinsic value
>50%
Share price is €17.4 vs Future cash flow value of €46.63
Current Discount Checks
For LKQ to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • LKQ's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • LKQ's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LKQ's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are LKQ's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LKQ1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $1.74
NasdaqGS:LKQ Share Price ** NasdaqGS (2020-04-02) in USD $18.51
Europe Retail Distributors Industry PE Ratio Median Figure of 18 Publicly-Listed Retail Distributors Companies 9.21x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LKQ.

DB:LKQ1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LKQ Share Price ÷ EPS (both in USD)

= 18.51 ÷ 1.74

10.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LKQ is overvalued based on earnings compared to the Europe Retail Distributors industry average.
  • LKQ is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does LKQ's expected growth come at a high price?
Raw Data
DB:LKQ1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
10%per year
Europe Retail Distributors Industry PEG Ratio Median Figure of 5 Publicly-Listed Retail Distributors Companies 0.78x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

DB:LKQ1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.62x ÷ 10%

1.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LKQ is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on LKQ's assets?
Raw Data
DB:LKQ1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $16.33
NasdaqGS:LKQ Share Price * NasdaqGS (2020-04-02) in USD $18.51
Europe Retail Distributors Industry PB Ratio Median Figure of 23 Publicly-Listed Retail Distributors Companies 1.04x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:LKQ1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LKQ Share Price ÷ Book Value per Share (both in USD)

= 18.51 ÷ 16.33

1.13x

* Primary Listing of LKQ.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LKQ is overvalued based on assets compared to the Europe Retail Distributors industry average.
X
Value checks
We assess LKQ's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Retail Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Retail Distributors industry average (and greater than 0)? (1 check)
  5. LKQ has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LKQ1 Future Performance

 How is LKQ expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is LKQ expected to grow at an attractive rate?
  • LKQ's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • LKQ's earnings growth is positive but not above the Germany market average.
  • LKQ's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LKQ1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LKQ1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 10%
DB:LKQ1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 1.8%
Europe Retail Distributors Industry Earnings Growth Rate Market Cap Weighted Average -4.9%
Europe Retail Distributors Industry Revenue Growth Rate Market Cap Weighted Average -0.2%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:LKQ1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LKQ1 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 13,765 1,180 900 2
2023-12-31 13,349 1,117 846 2
2022-12-31 12,989 1,076 795 2
2021-12-31 12,685 995 750 11
2020-12-31 12,272 1,018 666 11
2020-04-03
DB:LKQ1 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 12,506 1,064 541
2019-09-30 12,499 1,155 441
2019-06-30 12,474 1,020 423
2019-03-31 12,256 743 430
2018-12-31 11,877 711 485
2018-09-30 11,344 591 570
2018-06-30 10,687 485 559
2018-03-31 10,115 492 553
2017-12-31 9,737 519 540
2017-09-30 9,417 560 510
2017-06-30 9,159 635 498
2017-03-31 9,005 672 485

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LKQ's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
  • LKQ's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:LKQ1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from LKQ Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LKQ1 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 2.88 2.88 2.88 1.00
2023-12-31 2.72 2.72 2.72 1.00
2022-12-31 2.56 2.56 2.56 1.00
2021-12-31 2.36 2.60 2.03 5.00
2020-12-31 2.06 2.32 1.54 6.00
2020-04-03
DB:LKQ1 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 1.74
2019-09-30 1.41
2019-06-30 1.34
2019-03-31 1.36
2018-12-31 1.54
2018-09-30 1.83
2018-06-30 1.80
2018-03-31 1.79
2017-12-31 1.75
2017-09-30 1.66
2017-06-30 1.62
2017-03-31 1.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • LKQ is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess LKQ's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LKQ has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LKQ1 Past Performance

  How has LKQ performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare LKQ's growth in the last year to its industry (Retail Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • LKQ's year on year earnings growth rate has been positive over the past 5 years.
  • LKQ's 1-year earnings growth exceeds its 5-year average (11.6% vs 5%)
  • LKQ's earnings growth has not exceeded the Europe Retail Distributors industry average in the past year (11.6% vs 28.4%).
Earnings and Revenue History
LKQ's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from LKQ Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LKQ1 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 12,506.11 540.62 3,581.26
2019-09-30 12,499.03 440.71 3,569.29
2019-06-30 12,473.64 422.95 3,556.17
2019-03-31 12,256.21 429.60 3,483.42
2018-12-31 11,876.67 484.52 3,353.28
2018-09-30 11,343.75 570.46 3,182.32
2018-06-30 10,687.17 558.73 2,998.96
2018-03-31 10,114.83 552.64 2,837.11
2017-12-31 9,736.91 540.49 2,713.09
2017-09-30 9,417.46 510.40 2,610.09
2017-06-30 9,159.00 497.87 2,526.14
2017-03-31 9,005.40 484.76 2,473.66
2016-12-31 8,584.03 456.12 2,359.11
2016-09-30 8,182.54 454.89 2,259.07
2016-06-30 7,806.93 446.39 2,157.50
2016-03-31 7,340.20 428.30 2,037.93
2015-12-31 7,192.63 423.22 1,987.27
2015-09-30 7,127.85 408.63 1,963.14
2015-06-30 7,017.14 398.80 1,926.69
2015-03-31 6,888.20 383.96 1,896.11
2014-12-31 6,740.06 381.52 1,866.52
2014-09-30 6,372.62 378.91 1,769.74
2014-06-30 5,949.69 360.84 1,667.09
2014-03-31 5,492.31 331.68 1,560.94
2013-12-31 5,062.53 311.62 1,454.08
2013-09-30 4,813.75 295.95 1,391.58
2013-06-30 4,532.37 276.55 1,321.53

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • LKQ has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • LKQ used its assets less efficiently than the Europe Retail Distributors industry average last year based on Return on Assets.
  • LKQ's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess LKQ's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Retail Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LKQ has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LKQ1 Health

 How is LKQ's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LKQ's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • LKQ is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • LKQ's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of LKQ's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from LKQ Company Filings, last reported 3 months ago.

DB:LKQ1 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 5,072.66 4,025.24 523.02
2019-09-30 4,872.70 3,840.74 433.39
2019-06-30 4,909.75 4,043.79 375.97
2019-03-31 4,856.77 4,216.48 316.07
2018-12-31 4,838.75 4,311.53 331.76
2018-09-30 4,897.42 4,417.71 341.35
2018-06-30 4,776.98 4,490.76 345.20
2018-03-31 4,418.98 3,390.88 245.68
2017-12-31 4,206.65 3,465.47 279.77
2017-09-30 4,041.04 3,200.67 275.08
2017-06-30 3,856.69 3,021.62 303.54
2017-03-31 3,606.87 3,030.65 264.61
2016-12-31 3,442.95 3,344.90 227.40
2016-09-30 3,427.28 3,266.80 271.85
2016-06-30 3,307.64 3,341.89 273.20
2016-03-31 3,234.41 2,821.04 229.22
2015-12-31 3,114.68 1,586.05 87.40
2015-09-30 3,036.71 1,609.60 137.09
2015-06-30 2,954.09 1,694.82 143.42
2015-03-31 2,779.91 1,739.36 175.49
2014-12-31 2,720.66 1,851.37 114.61
2014-09-30 2,667.69 1,903.60 244.65
2014-06-30 2,602.52 1,958.26 109.56
2014-03-31 2,471.03 1,738.49 113.25
2013-12-31 2,350.75 1,314.25 150.49
2013-09-30 2,254.11 1,321.62 107.34
2013-06-30 2,137.65 1,386.27 161.59
  • LKQ's level of debt (79.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (68% vs 79.4% today).
  • Debt is well covered by operating cash flow (26.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.2x coverage).
X
Financial health checks
We assess LKQ's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. LKQ has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LKQ1 Dividends

 What is LKQ's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from LKQ dividends.
If you bought €2,000 of LKQ shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate LKQ's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate LKQ's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:LKQ1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Europe Retail Distributors Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 4.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 320 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:LKQ1 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2020-04-03

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as LKQ has not reported any payouts.
  • Unable to verify if LKQ's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of LKQ's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as LKQ has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess LKQ's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can LKQ afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. LKQ has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LKQ1 Management

 What is the CEO of LKQ's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nick Zarcone
COMPENSATION $6,429,072
AGE 61
TENURE AS CEO 2.9 years
CEO Bio

Mr. Dominick Paul Zarcone, also known as Nick, has been the Chief Executive Officer and President of LKQ Corporation since May 2017 and has been its Director since May 8, 2017. Mr. Zarcone served as Chief Financial Officer and Executive Vice President of LKQ Corp. since March 30, 2015 until May 2017. Prior to joining LKQ, Mr. Zarcone served as the Managing Director and the Chief Financial Officer of Baird Financial Group, a capital markets and wealth management company and certain of its affiliates from April 2011 to March 2015. Mr. Zarcone served as Treasurer of Baird Funds, Inc. - Baird Largecap Fund from April 2011 to March 2015. From February 1995 to April 2011, Mr. Zarcone served as a Managing Director of the Investment Banking department of Robert W. Baird & Co. Incorporated. From February 1986 to February 1995, he was with the investment banking company Kidder, Peabody & Co., Incorporated, as Senior Vice President of Investment Banking. He has over 25 years of expertise in investment banking and capital markets. He served as the Chief Financial Officer of Robert W. Baird & Co. Incorporated from 2011 to March 10, 2015 and its Managing Director until March 10, 2015. He spent 16 years in Robert W. Baird & Co.'s Investment Banking Department, where he served as the Chief Operating Officer. He was responsible for managing the Investment Banking activities in the Services and Technology sectors and his client activities were primarily focused on providing M&A advisory and financing services to growth-oriented companies in the Business Services industry. His extensive transaction experience includes approximately 100 financing and advisory assignments, including public offerings, private placements, mergers and acquisitions and strategic advisories. Prior to joining Baird in 1995, he spent nine years in the Investment Banking Group at Kidder, Peabody & Co., working with growth companies in service industries. Prior to joining Kidder, Peabody & Co., he spent five years with Beatrice Companies, Inc. in various financial capacities, the last of which was Manager-Treasurer for the International Food Segment. He has been Independent Director of Generac Holdings Inc. since January 1, 2017. Mr. Zarcone is a member of the Board of Directors of Generac Power Systems, Inc. He has been a Director of Coast Distribution System Inc. since August 19, 2015. Mr. Zarcone received an MBA from the University of Chicago Graduate School of Business and a BS in Finance with highest honors from the University of Illinois.

CEO Compensation
  • Nick's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Nick's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the LKQ management team in years:

3.8
Average Tenure
53
Average Age
  • The tenure for the LKQ management team is about average.
Management Team

Joe Holsten

TITLE
Executive Chairman
COMPENSATION
$1M
AGE
67

Nick Zarcone

TITLE
President
COMPENSATION
$6M
AGE
61
TENURE
2.9 yrs

Varun Laroyia

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
47
TENURE
2.5 yrs

Walter Hanley

TITLE
Senior Vice President of Development
COMPENSATION
$2M
AGE
52
TENURE
17.3 yrs

Justin Jude

TITLE
Senior Vice President of Operations - Wholesale Parts Division
COMPENSATION
$2M
AGE
42
TENURE
4.8 yrs

Arnd Franz

TITLE
Senior VP & CEO of LKQ Europe
COMPENSATION
$4M
AGE
54
TENURE
0.5 yrs

Michael Brooks

TITLE
Senior VP & Chief Information Officer
AGE
50
TENURE
0.2 yrs

Joe Boutross

TITLE
Vice President of Investor Relations
TENURE
9.1 yrs

Victor Casini

TITLE
Senior VP
COMPENSATION
$2M
AGE
56
TENURE
22.2 yrs

Guido Weber

TITLE
Director of Corporate Communications & Government Affairs
Board of Directors Tenure

Average tenure and age of the LKQ board of directors in years:

7.7
Average Tenure
62
Average Age
  • The tenure for the LKQ board of directors is about average.
Board of Directors

Nick Zarcone

TITLE
President
COMPENSATION
$6M
AGE
61
TENURE
2.9 yrs

John O'Brien

TITLE
Independent Director
COMPENSATION
$250K
AGE
75
TENURE
16.8 yrs

Joe Holsten

TITLE
Executive Chairman
COMPENSATION
$1M
AGE
67
TENURE
8.4 yrs

Blythe McGarvie

TITLE
Independent Director
COMPENSATION
$260K
AGE
63
TENURE
8.1 yrs

Guhan Subramanian

TITLE
Former Lead Independent Director
COMPENSATION
$250K
AGE
48
TENURE
7.3 yrs

A. Allen

TITLE
Independent Director
COMPENSATION
$265K
AGE
75
TENURE
16.9 yrs

Billy Webster

TITLE
Independent Director
COMPENSATION
$243K
AGE
61
TENURE
16.8 yrs

Robert Hanser

TITLE
Independent Director
COMPENSATION
$248K
AGE
65
TENURE
4.4 yrs

Meg Divitto

TITLE
Independent Director
COMPENSATION
$230K
AGE
47
TENURE
1.7 yrs

Jody Miller

TITLE
Independent Director
COMPENSATION
$237K
AGE
61
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • LKQ individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
18. Mar 20 Sell A. Allen Individual 16. Mar 20 16. Mar 20 -20,000 €18.60 €-371,914
09. Mar 20 Buy ValueAct Capital Management L.P. Company 27. Jan 20 09. Mar 20 5,015,028 €28.92 €117,048,065
06. Nov 19 Sell Blythe McGarvie Individual 05. Nov 19 05. Nov 19 -13,692 €32.18 €-440,544
X
Management checks
We assess LKQ's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. LKQ has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LKQ1 News

Simply Wall St News

LKQ1 Company Info

Description

LKQ Corporation, together with its subsidiaries, distributes replacement parts, components, and systems used in the repair and maintenance of vehicles. It operates in three segments: North America, Europe, and Specialty. The company distributes bumper covers, automotive body panels, and lights, as well as automotive glass products, such as windshields; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; lights and bumper assemblies; scrap metal and other materials to metals recyclers; 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. It also operates self-service retail operations under the LKQ Pick Your Part name; and designs, manufactures, and markets vehicle equipment and accessories. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, cargo management products, wheels, tires, and suspension products. It serves collision and mechanical repair shops, and new and used car dealerships, as well as retail customers. The company operates in the United States, Canada, the United Kingdom, Germany, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Poland, Slovakia, Austria, Taiwan, and various other European countries. LKQ Corporation was founded in 1998 and is headquartered in Chicago, Illinois.

Details
Name: LKQ Corporation
LKQ1
Exchange: DB
Founded: 1998
$5,235,743,514
307,690,923
Website: http://www.lkqcorp.com
Address: LKQ Corporation
500 West Madison Street,
Suite 2800,
Chicago,
Illinois, 60661,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LKQ Common Stock Nasdaq Global Select US USD 03. Oct 2003
DB LKQ1 Common Stock Deutsche Boerse AG DE EUR 03. Oct 2003
LSE 0JSJ Common Stock London Stock Exchange GB USD 03. Oct 2003
BOVESPA L1KQ34 BDR EACH 1 REPR 1 SHS UNSPON Bolsa de Valores de Sao Paulo BR BRL 27. Jan 2020
Number of employees
Current staff
Staff numbers
51,000
LKQ employees.
Industry
Distributors
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 02:21
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.