Is the business good?
How good a business is LKQ?
LKQ Corporation earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
12%
Return on invested capital · cost of capital 9.0% · 3.3 points above what the capital costs: growth creates value
- Operating margin
- 6.9%
Operating margin · Auto Parts median 8.5% · 12 months to Q1 2026
- Cash conversion
- 1.56×
Cash conversion · 0.80× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.4%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 8.5% |
| FY2021 | 11% |
| FY2022 | 12% |
| FY2023 | 10.0% |
| FY2024 | 8.3% |
| FY2025 | 7.3% |
Details›
- Gross margin12 months to Q1 2026
- 38%
- Operating margin12 months to Q1 2026
- 6.9%
- Net margin12 months to Q1 2026
- 3.7%
- Free cash flow margin
- 5.8%
- Revenue, trailing twelve months
- $13.9B
- Free cash flow, trailing twelve months
- $808M
- Net income, trailing twelve months
- $518M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.