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Added to YB: 2026-05-07

Pitch date: 2026-05-05

LKQ [bullish]

LKQ Corporation

+0.52%

current return

Author Info

Value with a Catalyst covers long value oriented small and mid- cap investment ideas with a catalyst. Sign up for the newsletter.

Company Info

LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories.

Market Cap

$7.3B

Pitch Price

$28.62

Price Target

N/A

Dividend

4.21%

EV/EBITDA

6.35

P/E

14.25

EV/Sales

0.88

Sector

Distributors

Category

special_situation

Show full summary:
LKQ - Sound Business, Strategic Review Pending

LKQ: Aftermarket auto parts supplier w/ 40% gross margin, 10-15% EBITDA margin. US biz (~35% share) strong, Europe (~15% share) weaker. Currently 12x fwd P/E, 9.1x P/FCF on $700-850M FCF guide vs $7.3B mkt cap. Strategic review launched Apr 2026 w/ Goldman—PE active in space. Risks: ERP issues, EV adoption, self-driving tech. Catalyst: asset sale (ideally divest Europe, keep US).

Read full article (4 min)