LKQ

LKQ Corp

Consumer, Industrial/Transportation


Presented:06/27/2018
Price:$31.69
Cap:$9.81B
Current Price:$39.00
Cap:$10.27B

Presented

Date06/27/2018
Price$31.69
Market Cap$9.81B
Ent Value$14.90B
P/E Ratio17.84x
Book Value$14.23
Div Yield0%
Shares O/S309.71M
Ave Daily Vol2,620,161
Short Int1.66%

Current

Price$39.00
Market Cap$10.27B
LKQ Corp. engages in providing alternative parts to repair and accessorize automobiles and other vehicles. It operates through the following segments: Wholesale-North America, Europe, and Specialty. The Wholesale-North America segment includes Glass and Self Service segments. The company was founded by Donald F. Flynn in February 1998 and is headquartered in Chicago, IL.

Publicly traded companies mentioned herein: Genuine Parts Company (GPC), LKQ Corp (LKQ), O’Reilly Automotive Inc (ORLY)

Highlights

The presenter is long shares of LKQ Corp (LKQ), viewing the recent sell-off as an overreaction to temporary and fading issues (not structural or competitive forces), including commodity inflation, freight costs, and a hiccup at a new distribution center (DC), and feels the fundamental strength of LKQ remains unchanged. He sees sentiment recovering over the next 2 – 3 quarters as performance improves, and sees longer-term tailwinds from a “transformative” acquisition in Europe leading to margin expansion. There could be over 50% upside in LKQ shares, as he is modelling $3.00 in 2020 EPS and a high-teens P/E multiple.

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Idea Discussion

Commentor 1 - 2 weeks ago

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