LKQ Operating Margin vs. Price To Earning

LKQ Stock  USD 36.88  0.88  2.44%   
Considering LKQ's profitability and operating efficiency indicators, LKQ Corporation may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess LKQ's ability to earn profits and add value for shareholders.

LKQ Operating Profit Margin

0.0694

At this time, LKQ's Price To Sales Ratio is relatively stable compared to the past year. As of 12/22/2024, Sales General And Administrative To Revenue is likely to grow to 0.29, while Operating Cash Flow Sales Ratio is likely to drop 0.05. At this time, LKQ's Income Quality is relatively stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.470.4021
Fairly Up
Pretty Stable
Net Profit Margin0.03590.0675
Way Down
Slightly volatile
Operating Profit Margin0.06940.0979
Way Down
Pretty Stable
Pretax Profit Margin0.06220.0891
Way Down
Pretty Stable
For LKQ profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LKQ to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LKQ Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LKQ's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LKQ Corporation over time as well as its relative position and ranking within its peers.
  

LKQ's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
Is Distributors space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LKQ. If investors know LKQ will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LKQ listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.06)
Dividend Share
1.2
Earnings Share
2.71
Revenue Per Share
54.595
Quarterly Revenue Growth
0.004
The market value of LKQ Corporation is measured differently than its book value, which is the value of LKQ that is recorded on the company's balance sheet. Investors also form their own opinion of LKQ's value that differs from its market value or its book value, called intrinsic value, which is LKQ's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LKQ's market value can be influenced by many factors that don't directly affect LKQ's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LKQ's value and its price as these two are different measures arrived at by different means. Investors typically determine if LKQ is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LKQ's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

LKQ Corporation Price To Earning vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining LKQ's current stock value. Our valuation model uses many indicators to compare LKQ value to that of its competitors to determine the firm's financial worth.
LKQ Corporation is rated below average in operating margin category among its peers. It is rated below average in price to earning category among its peers reporting about  137.12  of Price To Earning per Operating Margin. At this time, LKQ's Operating Profit Margin is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value LKQ by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

LKQ Price To Earning vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

LKQ

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.09 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

LKQ

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
12.67 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

LKQ Price To Earning Comparison

LKQ is currently under evaluation in price to earning category among its peers.

LKQ Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in LKQ, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LKQ will eventually generate negative long term returns. The profitability progress is the general direction of LKQ's change in net profit over the period of time. It can combine multiple indicators of LKQ, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-240 M-228 M
Operating Income1.4 B1.4 B
Income Before Tax1.2 B1.3 B
Income Tax Expense306 M321.3 M
Total Other Income Expense Net-122 M-115.9 M
Net Income938 M984.9 M
Net Income Applicable To Common Shares1.3 B1.4 B
Net Income From Continuing Ops944 M655.7 M
Non Operating Income Net Other29.9 M31.4 M
Interest Income44 M25.7 M
Net Interest Income-170 M-161.5 M
Change To Netincome-148.3 M-140.9 M
Net Income Per Share 3.50  3.67 
Income Quality 1.45  1.51 
Net Income Per E B T 0.76  0.52 

LKQ Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on LKQ. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of LKQ position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the LKQ's important profitability drivers and their relationship over time.

Use LKQ in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if LKQ position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LKQ will appreciate offsetting losses from the drop in the long position's value.

LKQ Pair Trading

LKQ Corporation Pair Trading Analysis

The ability to find closely correlated positions to LKQ could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LKQ when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back LKQ - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling LKQ Corporation to buy it.
The correlation of LKQ is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as LKQ moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LKQ Corporation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for LKQ can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your LKQ position

In addition to having LKQ in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Long Short Funds Thematic Idea Now

Long Short Funds
Long Short Funds Theme
Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Long Short Funds Theme or any other thematic opportunities.
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Additional Tools for LKQ Stock Analysis

When running LKQ's price analysis, check to measure LKQ's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy LKQ is operating at the current time. Most of LKQ's value examination focuses on studying past and present price action to predict the probability of LKQ's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LKQ's price. Additionally, you may evaluate how the addition of LKQ to your portfolios can decrease your overall portfolio volatility.