LKQ
Consumer CyclicalLKQ Corporation · Auto - Parts · $7B
What is LKQ Corporation?
LKQ Corporation is a leading distributor of replacement vehicle parts, components, and systems serving repair shops, dealerships, and retail customers across North America, Europe, and specialty markets. Headquartered in Chicago, Illinois, LKQ operates one of the largest alternative auto-parts networks in the world.
LKQ sources and distributes aftermarket, salvage, and remanufactured parts to collision and mechanical repair shops, car dealerships, and individual buyers. Revenue flows through three segments — North America, Europe, and Specialty — covering everything from body panels and windshields to engines, transmissions, and recreational vehicle accessories. The Specialty segment adds towing hitches, truck bed covers, and cargo management products, broadening LKQ's reach beyond traditional auto repair.
LKQ Corporation was incorporated in 1998 and is headquartered in Chicago, Illinois.
- Aftermarket collision and mechanical replacement parts
- Salvage and remanufactured engines and transmissions
- Automotive glass including windshields
- Specialty vehicle accessories and RV components
- Scrap metal and recycled materials
Is LKQ a Good Stock to Buy?
UQS Score rates LKQ as Below Average overall, reflecting meaningful headwinds across several key dimensions.
The most constructive signal in LKQ's profile is its Valuation pillar, which is rated Attractive — suggesting the market may already be pricing in the company's challenges. The Quality pillar lands at Neutral, indicating the business generates adequate but not standout financial results relative to sector peers.
The Moat, Growth, and Risk pillars are all rated Weak, pointing to limited competitive differentiation, subdued expansion prospects, and above-average risk factors that investors should weigh carefully.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does LKQ pay dividends?
Yes — LKQ Corporation pays a dividend.
LKQ pays a regular dividend, which is relatively uncommon among mid-cap distributors still navigating integration costs from acquisitions. The dividend signals management's confidence in generating consistent cash flow, though investors should weigh the payout against the company's Weak Risk and Growth pillar ratings before treating it as a primary income thesis.
When does LKQ report earnings?
LKQ Corporation reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
LKQ's recent results reflect the pressures visible in its UQS pillar profile — growth has been muted and risk factors remain elevated. The company's broad geographic footprint across North America and Europe introduces currency and macro sensitivity that can weigh on reported figures.
For the most current quarterly results and guidance, visit LKQ Corporation's investor relations page directly.
LKQ Price History
-31.1% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in LKQ Corporation?
Based on LKQ Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
LKQ Long-term Outlook
LKQ's fundamental outlook is shaped by a Weak Growth pillar and a Weak Risk pillar, suggesting the near-term path is more about stabilization than acceleration. The Attractive Valuation pillar indicates the stock may offer a margin of safety, but that cushion is only meaningful if the business can arrest the growth slowdown. European operations add complexity, and any macro softness in vehicle repair volumes could further pressure results.
Growth drivers
- Continued consolidation of fragmented aftermarket parts distribution in Europe
- Specialty segment expansion into recreational vehicle and truck accessories
- Steady demand from aging vehicle fleet requiring more frequent repairs
Key risks
- Weak competitive moat leaves LKQ exposed to pricing pressure from rivals
- Currency headwinds from multi-country European operations
- Elevated financial risk profile limits flexibility during economic downturns
LKQ vs Peers
LKQ operates in the broader automotive components and distribution space, where it competes indirectly with suppliers and technology-driven players.
Autoliv focuses on active safety systems like airbags and seatbelts, targeting OEM manufacturers rather than the aftermarket repair channel LKQ serves.
Mobileye develops advanced driver-assistance and autonomous driving technology, operating at the high-tech end of the automotive ecosystem far from LKQ's parts distribution model.
Lear supplies seating and electrical systems to vehicle manufacturers, competing in the OEM supply chain rather than the aftermarket replacement market where LKQ is concentrated.
Frequently Asked Questions
What does LKQ Corporation do?
LKQ Corporation distributes replacement parts and components used to repair and maintain vehicles. It supplies aftermarket, salvage, and remanufactured parts — from bumpers and windshields to engines and transmissions — to collision shops, mechanical repair facilities, dealerships, and retail customers across North America, Europe, and specialty markets.
Does LKQ pay dividends?
Yes, LKQ pays a regular dividend. For a mid-cap distributor, this reflects management's confidence in ongoing cash generation. However, the company's Weak Risk and Growth pillar ratings are worth considering alongside the dividend when evaluating LKQ as an income holding.
When does LKQ report earnings?
LKQ reports on a quarterly cadence, as is standard for US-listed companies. The exact dates shift each cycle, so check LKQ's investor relations page or a financial calendar for the most current schedule.
Is LKQ a good stock to buy?
UQS Score rates LKQ as Below Average, driven by Weak ratings across Moat, Growth, and Risk pillars. The Valuation pillar is Attractive, which may interest contrarian investors, but the underlying business challenges are real. Pro members can access the full pillar breakdown to make a more informed judgment.
Is LKQ overvalued?
Based on the UQS Valuation pillar, LKQ is rated Attractive — meaning the stock appears reasonably priced or potentially undervalued relative to its fundamentals. That said, an attractive price alone does not offset the Weak Growth and Risk signals visible elsewhere in the profile.
How does LKQ compare to its competitors?
LKQ's peers in the automotive components space — including Autoliv, Mobileye, and Lear — largely serve OEM manufacturers rather than the aftermarket repair channel. This makes direct comparison nuanced. LKQ's Below Average UQS Score can be benchmarked against sector peers using the full comparison tools available to Pro members.
What is LKQ's market cap bracket?
LKQ Corporation is classified as a mid-cap company. This places it in a range that typically offers more liquidity than small-caps while remaining more nimble than mega-cap peers, though mid-caps can be more sensitive to economic cycles.
Who founded LKQ Corporation?
LKQ Corporation was incorporated in 1998 and built its scale largely through acquisitions of regional auto parts distributors. Detailed founding history, including key executives involved in its early formation, is publicly available through the company's official filings and corporate history pages.
Is LKQ a long-term quality holding?
As a long-term quality indicator, LKQ's Below Average UQS Score raises caution. The Weak Moat pillar suggests limited durable competitive advantages, and the Weak Growth pillar points to subdued expansion potential. Long-term investors should weigh the Attractive Valuation against these structural concerns before committing capital.
What is the main competitive advantage of LKQ Corporation?
LKQ's scale and geographic reach — spanning the US, Canada, and much of Europe — create logistical density that smaller distributors struggle to replicate. However, the UQS Moat pillar rates this advantage as Weak, suggesting the network effect and switching costs are not yet strong enough to command a durable pricing premium.
What sector does LKQ belong to?
LKQ Corporation is classified under the Consumer Cyclical sector. This means its business performance tends to correlate with broader economic conditions — when consumers and businesses pull back on vehicle repair spending, LKQ can feel the impact across its distribution network.
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Pro Analysis
LKQ — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 45.4 | 47.8 | 36.0 | 27.0 | 31.0 | 96.0 | -0.1 |
| May 17, 2026 | 45.5 | 47.8 | 36.0 | 27.0 | 31.0 | 96.5 | -0.6 |
| May 7, 2026 | 46.1 | 49.9 | 36.0 | 27.1 | 32.9 | 95.4 | 0.0 |
| May 4, 2026 | 46.1 | 49.9 | 36.0 | 27.1 | 32.9 | 95.2 | +0.1 |
| Apr 26, 2026 | 46.0 | 49.9 | 36.0 | 26.6 | 32.9 | 95.2 | -0.1 |
| Apr 19, 2026 | 46.1 | 49.9 | 36.0 | 26.7 | 32.9 | 95.5 | +0.1 |
| Apr 18, 2026 | 46.0 | 49.9 | 36.0 | 26.7 | 32.9 | 95.3 | -0.7 |
| Apr 2, 2026 | 46.7 | 49.9 | 36.0 | 26.7 | 32.9 | 100.0 | — |
LKQ — Pillar Breakdown
Quality
— 47.8/100 (25%)LKQ Corporation has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 27.0/100 (20%)LKQ Corporation faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 31.0/100 (15%)LKQ Corporation presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 96.1/100 (15%)LKQ Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 36/100 (25%)LKQ Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for LKQ.
Score Composition
Financial Data
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How is the LKQ UQS Score Calculated?
The UQS (Unified Quality Score) for LKQ Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses LKQ Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether LKQ Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.