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/LKQ
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LKQ Corp

LKQ Corp

LKQ
$24.11USD↑+2.03%+0.48 today

MARKET CAP

6.1B

P/E (TTM)

8.5x

FWD P/E

8.1x

DAY RANGE

$24 – $24

52W RANGE

$21
$37

AI Summary

Stalk
Sell NowMedium

LKQ remains entrenched in a downtrend below all major EMAs with persistent lower highs and lower lows. Medium-term bias is Bearish, reinforced by bearish moving‐average alignment and a Lower Highs & Lower Lows pattern. Short-term momentum remains negative with no clear exhaustion or bullish divergence, suggesting selling strength. Execution is optimal on minor rallies into the 9/20/50 EMA resistance zone. A failure below the 24.0 support zone would accelerate the decline, while a close above the 20-day EMA and recent lower-high near 25.1 would invalidate the bearish stance.

  • ↑North America posted 0.5% organic revenue growth, first uptick in nine quarters
  • ↑Free cash flow of $847 M in 2025 underlines robust cash generation
  • ↓Europe organic revenue fell 12.6% due to ERP implementation challenges
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

LKQ Corporation (NASDAQ: LKQ) is a leading provider of alternative automotive parts and services in the aftermarket segment, operating extensively across North America and Europe. The company specializes in distributing and selling quality parts and is involved in the collision repair and salvage markets. LKQ is currently undergoing a transformative strategy to enhance operational efficiency, streamline costs, and capitalize on the shifting dynamics within the automotive aftermarket, amid ongoing macroeconomic pressures and increasing competitive challenges.

Bull says

  • ↑North America posted 0.5% organic revenue growth, first uptick in nine quarters
  • ↑Free cash flow of $847 M in 2025 underlines robust cash generation
  • ↑Achieved $35 M of targeted $75 M cost cuts for 2025 to improve margins
  • ↑Specialty segment revenue climbed 4.5%, indicating niche recovery
  • ↑Dividend yield ~0.7% and strong earnings yield suggest attractive valuation
  • ↑Moderate leverage supports investments; balance sheet stability underpins growth

Bear says

  • ↓Europe organic revenue fell 12.6% due to ERP implementation challenges
  • ↓Adjusted EPS cut to $0.67 reflecting Q2 ERP-related disruptions
  • ↓Weak profitability metrics signal margin pressure in competitive markets
  • ↓Total debt $4.2 B at 2.6× EBITDA elevates leverage risk
  • ↓Analyst estimates for growth and revisions have been downgraded
  • ↓Low institutional ownership and factor trends indicate investor caution

Investment themes with LKQ

High Dividend Yield↓ -0.51%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 08-18-2026neutral

Transcript signals

Bull points

  • We are seeing a turn in the market for strategic activity, with credit markets opening, momentum behind midsize transactions and private equity actively seeking to deploy capital.
  • our aftermarket collision parts business witnessed slight growth in the quarter.
  • We are still seeing consistent demand across our hard parts business in Canada and margin enhancement as we convert from three-step to two-step.

Bear points

  • We reported total revenues of $3.6 billion. Diluted earnings per share were 75 cents, a 5 cent increase compared to Q2 2024. On an adjusted diluted earnings per share basis, we reported 87 cents, a decrease of 11 cents per share versus prior year primarily due to lower operating results.
  • Given a confluence of macroeconomic factors in both North America and Europe, coupled with the results this quarter, we are lowering our full-year outlook. In North America, we are anticipating a delayed recovery in repairable claims, ongoing tariff disruptions, and competitive market dynamics.
  • We expect reported organic parts and services revenue in the range of negative 150 basis points to negative 350 basis points. As a result of the revenue headwinds, we expect adjusted diluted EPS to be in the range of $3 to $3.30, a decrease of 40 cents from the midpoint from the previous guidance.
Read full transcript analysis ›