Lumida
/LKQ
⌘K
LKQ Corp

LKQ Corp

LKQ
$25.38USD↓-2.42%-0.63 today

MARKET CAP

6.5B

P/E (TTM)

8.5x

FWD P/E

7.8x

DAY RANGE

$25 – $27

52W RANGE

$24
$39

AI Summary

Stalk
Buy NowMedium

LKQ remains in an early Stage 1 consolidation after a terminal flush low, with the Post-Capitulation pattern signalling selling exhaustion and an oversold context. Mean Reversion Eligibility grants tactical medium-term bullish permission, while the long-term downtrend remains intact. Price is holding around the repaired 9/20 EMA zone and base support cluster, offering a favorable short-term entry. Execution should focus on accumulation on pullbacks into the EMAs and base, with a break below that structure invalidating the setup.

  • ↑Q1 revenue $3.5B (+4.3% YoY) indicates resilience under headwinds
  • ↑€75M European cost-savings initiative to lift EBITDA margins
  • ↓Legal investigations into Uni-Select deal raise credibility risks
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

LKQ Corporation (NASDAQ: LKQ) operates as a leading provider of alternative vehicle parts and services in the automotive aftermarket industry, serving North America and Europe. The company specializes in recycled, aftermarket, and OEM parts, focusing on sustainable business practices. LKQ is well-positioned within a sector grappling with fluctuating economic conditions, particularly regarding used car pricing and insurance claims, while also capitalizing on growth opportunities related to evolving automotive technologies.

Bull says

  • ↑Q1 revenue $3.5B (+4.3% YoY) indicates resilience under headwinds
  • ↑€75M European cost-savings initiative to lift EBITDA margins
  • ↑Alternative parts utilization at 40% boosts potential margins
  • ↑Q1 dividend payout of $77M underlines strong cash returns
  • ↑EV battery repair acquisition opens new high-growth segment
  • ↑Attractive valuation via high earnings yield and dividend yield

Bear says

  • ↓Legal investigations into Uni-Select deal raise credibility risks
  • ↓Organic revenue growth at –0.5%, reliance on acquisitions growing
  • ↓North America EBITDA margin down 130bps YoY to 14.1%
  • ↓Negative free cash flow of $96M strains liquidity
  • ↓Profitability weak and leverage elevated amid margin pressures
  • ↓Competitive European pricing pressure limits margin recovery

Investment themes with LKQ

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-01-2026neutral

Transcript signals

Bull points

  • In North America, top-line performance remains solid despite year-over-year headwinds from repairable claims and tariffs, and we believe we continue to gain market share.
  • Other revenue grew due to higher metal prices and higher volumes.
  • SG&A in North America improved by 90 basis points as a percentage of revenue compared to the prior year, reflecting our focus on controlling what we can control, cost discipline, and that drove operating leverage on higher revenue.

Bear points

  • If you look at the overall EBITDA percentage decline year over year for our North America wholesale, almost entirely made up of inflationary pressures due to tariffs. So that decline is fully baked in and it was zero last year
  • but we do have a bit of an impact on the margin percentages.
  • We reported revenues of $3.5 billion, a 4.3% increase year over year, Diluted EPS was $0.30 and includes a $0.17 per share impairment related to our equity method investment in mecanomen, which is excluded from adjusted net income.
Read full transcript analysis ›