LKQ (0JSJ) AI Stock Analysis

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LKQ

(LSE:0JSJ)

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Positive Factors

Scale and Market PositionLKQ’s broad scale, leading positions, and global distribution network support part availability, customer reach, and purchasing leverage. These capabilities can reinforce repeat business with repair customers and create a durable platform for operational improvements across regions.

Negative Factors

European Profitability DeteriorationEurope is experiencing a substantial and potentially persistent earnings setback, with lower revenue, gross-margin compression, and higher SG&A intensity. The scale of EBITDA decline reduces consolidated profitability and makes successful operational repair essential to restoring prior earnings power.

LKQ (0JSJ) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: $4.97B
Dividend Yield: 6.07%
Average Volume (3M): 4,511
Price to Earnings (P/E): 19.8
Beta (1Y): 0.74
Revenue Growth: -3.24%
EPS Growth: -62.39%
Country: UK
Employees: 44,000
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

LKQ Business Overview & Revenue Model

Company Description

LKQ Corporation, established in 1998 and headquartered in Chicago, Illinois, specializes in distributing replacement parts and systems essential for vehicle repair and maintenance. Its operations are structured across three primary segments: North Am...

LKQ Earnings Call Summary

Earnings Call Date:Oct 29, 2026(Q3-2026)|% Change Since:16.98%|Next Earnings Date:Feb 25, 2027

Earnings Call SentimentNegative

The call included meaningful strengths in North American margins, alternative-part utilization, specialty revenue growth, cash flow, liquidity, and the stated recovery of German operational metrics. However, these positives were outweighed by the consolidated revenue and earnings declines, substantial European revenue and EBITDA deterioration, customer and market-share losses, impairment charges, leadership changes, and the suspension of full-year guidance. Management acknowledged the issues and outlined corrective actions, but the overall tone was focused on stabilization and recovery from significant current challenges.

Positive Updates

North America Margin Expansion

North America parts and services organic revenue declined 2.4%, but segment EBITDA was $203 million and EBITDA margin increased 40 basis points year over year to 14.4%. Gross margin improved to 42.3%, supported by the expanded deployment of the strategic pricing model, while SG&A was reduced despite higher freight and fuel expenses.

Negative Updates

Consolidated Revenue Decline

Third-quarter revenue was approximately $3.3 billion, down 5.1% from $3.5 billion in the prior-year period. Parts and services organic revenue declined 5.4%, while foreign exchange reduced revenue by 0.7%.

Company Guidance

LKQ suspended its full year 2026 guidance, and its previous guidance should no longer be relied upon. Rick Galloway said there was “no catalyst” that would negate “normal seasonality from Q3 to Q4,” and he would expect “that trajectory from Q3 to Q4 and really all the businesses to continue”; Germany revenue was “around that 85%” and had “sort of stagnated,” while OTIF was “about 95%” versus “less than 80%” in Q2, with 75% of locations in “the upper 90s.”

LKQ Risk Analysis

LKQ disclosed 38 risk factors in its most recent earnings report. LKQ reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

LKQ Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:0JSJ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DORM	72Outperform	$3.97B	19.66	13.42%	―	2.20%	-16.49%
SMP	67Neutral	$989.97M	14.07	9.86%	2.96%	5.50%	119.37%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MNRO	49Neutral	$361.20M	-6940.00	0.14%	10.82%	-4.43%	99.33%
MPAA	46Neutral	$144.53M	-201.43	-0.22%	―	-9.11%	-129.06%
QS	44Neutral	$2.62B	-6.12	-35.50%	―	―	22.80%

* Consumer Cyclical Sector Average

Performance Comparison

GB:0JSJ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0JSJ	LKQ Corporation	19.77	-9.22	-31.80%
DORM	Dorman Products	132.00	3.40	2.64%
MNRO	Monro Muffler Brake	10.36	-5.21	-33.47%
MPAA	Motorcar Parts Of America	7.71	-4.87	-38.71%
SMP	Standard Motor Products	43.95	8.17	22.83%
QS	Quantumscape Corporation	3.88	-9.07	-70.04%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

LKQ AI Stock Analysis