LKQ CORP LKQ
ASignal's systematic analysis rates LKQ as Bearish.
Reflects the latest available analysis · analyzed Nov 5, 2026
The case on LKQ
Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.
- Free cash flow is strong at $1.06B, indicating solid cash generation
- Forward P/E of 8.94x suggests valuation discount relative to growth (PEG 0.92x)
- EV/EBITDA of 7.41x is low for the sector, indicating potential undervaluation
- Debt-to-equity ratio of 0.80x is moderate and manageable
- Current ratio of 1.75x indicates sufficient short-term liquidity
- Negative price momentum (-0.068) and price below SMA20 and SMA50 indicate downtrend
- MACD below signal line with negative histogram suggests bearish momentum
- Revenue growth YoY at -5.10% shows contraction in top line
- Net profit margin of 1.89% is low, indicating weak profitability
- ROE of 4.05% reflects poor capital efficiency
- Dividend payout ratio of 117.65% is unsustainable, raising concerns about yield quality
See the full verdict on LKQ
ASignal Rank (1-4), confidence score, Value / Activist / Macro grades, price targets, and the full reasoning behind the call.
How ASignal analyzes LKQ
Most investors never get a second opinion, let alone several. ASignal runs LKQ past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: value discipline, activist catalysts, and macro analysis. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.
The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.