| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | 9.6x | 17.3x | Top tier | |
Growth | 17 | 4.3% | 7.1% | Bottom tier | |
Quality | 58 | 5.5% | 4.5% | Around median | |
Safety | 52 | 5.0x | 2.6x | Around median | |
Capital Return | 81 | 6.99% | 0.06% | Top tier | |
Momentum | 11 | -22.7% | -1.6% | Bottom tier | |
Sentiment | 75 | 7 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
45% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
LKQ Corporation operates a global automotive parts distribution network and generates revenue through three main operating segments: North America Parts & Services, Europe Parts & Services, and Specialty. In North America, the company relies on alternative collision parts, salvage parts, paint, and mechanical parts, while its European operations are built on an extensive distribution network spanning Germany, the United Kingdom, and the Benelux countries; Specialty serves a niche market that management describes as holding the number one position in its field. The network is supported by more than 42 thousand employees, while management aims to improve efficiency, pricing, fulfillment rates, and private-label penetration in Europe.
In quarter 2 of fiscal year 2026, revenue was approximately $3.4 billion, compared with $3.5 billion in the corresponding period, and gross profit was $1.3 billion, representing a gross margin of approximately 38.2%. Net income was $136 million, representing a net margin of approximately 4.0%, while diluted earnings per share according to the call were $0.52 and adjusted diluted earnings per share were $0.67, compared with adjusted earnings of $0.84 in the corresponding period. For the twelve months ended in fiscal year 2026, the company generated revenue of $13.7 billion, gross profit of $5.2 billion, and net income of $482 million.
Performance differed markedly across segments in quarter 2 of fiscal year 2026; North America Parts & Services organic revenue grew by 0.5%, and segment earnings before interest, taxes, depreciation, and amortization were $207 million at a margin of 14.1%. By contrast, Europe organic revenue declined 12.6%, and segment earnings before interest, taxes, depreciation, and amortization were $109 million at a margin of 7.5%, affected by disruption from the ERP system implementation in Germany. Specialty delivered organic growth of 4.5%, but its earnings before interest, taxes, depreciation, and amortization were only $33 million at a margin of 6.7%.
The average analyst price target is $31.3, within a wide range of $25 to $36.5, and the stock carries a consensus “Buy” rating; the average target is below the 52-week range high of $37.13, and even the highest targets remain below that high. No usable price-to-earnings ratio is available in the data, while the wide 52-week range of $21.17 to $37.13 and the lack of convergence among analyst targets reflect the risks from the fiscal year 2026 outlook reduction and uncertainty about the pace of Europe's recovery.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
The ERP system implementation in Germany was the largest factor, reducing Europe revenue by approximately $140 million and its earnings before interest, taxes, depreciation, and amortization by approximately $50 million. Europe organic revenue declined 12.6%, while the segment margin was 7.5%. Weak volumes in the United Kingdom and Benelux added an impact of approximately $30 million on earnings before interest, taxes, depreciation, and amortization. As a result, adjusted diluted earnings per share declined to $0.67 from $0.84 in the corresponding period.
Management said on the July 30, 2026 call that the system had become stable and that German operations ended a week at more than 85% of the normal revenue run rate. Stability, data, and software defect issues have been resolved, while the remaining actions focus on retraining teams at approximately a few dozen branches and restoring LKQ's share of customer spending. The new platform increased the proportion of European operations running on a common system from approximately 5% to more than 30%. Management aims to approach 100% of Germany's volume entering fiscal year 2027, without assuming an immediate recovery in its outlook.
Automated analysis for informational purposes only — not investment advice.
Parts & Services organic revenue grew 0.5% in quarter 2 of fiscal year 2026, recording the first growth in nine quarters. Alternative collision parts revenue increased by approximately 2%, alternative parts usage exceeded 40%, and the mechanical parts business in Canada grew at a mid-single-digit rate. The segment generated $207 million in earnings before interest, taxes, depreciation, and amortization at a margin of 14.1% despite a $10 million legal reserve. Nevertheless, net volumes remained slightly negative, and the paint business continued to be a source of pressure.
LKQ expects organic Parts & Services growth of between negative 1% and negative 3% in fiscal year 2026. It expects adjusted diluted earnings per share of between $2.60 and $2.90, compared with the previous outlook of $2.90–$3.20. It also reduced its free cash flow range to $625–$775 million from $700–$850 million. The outlook assumes a gradual recovery in Germany, with conditions in the United Kingdom and Benelux remaining weak and no significant recovery in the repair claims market.
Specialty organic revenue grew 4.5% in quarter 2 of fiscal year 2026, and its earnings before interest, taxes, depreciation, and amortization were $33 million at a margin of 6.7%. The margin was affected by an $8 million non-cash credit loss reserve, as well as product mix and freight and fuel costs. Management confirmed on July 30, 2026 that Specialty is included in the company's broader strategic review, which is being conducted with the participation of Bank of America and Goldman Sachs and includes outreach to several parties. The company did not announce an outcome from the review or a specific transaction in the provided data.