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LKQ (LKQ) Piotroski F-Score : 6 (As of Oct. 31, 2024)


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What is LKQ Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

LKQ has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for LKQ's Piotroski F-Score or its related term are showing as below:

LKQ' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of LKQ was 8. The lowest was 3. And the median was 6.


LKQ Piotroski F-Score Historical Data

The historical data trend for LKQ's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LKQ Piotroski F-Score Chart

LKQ Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 7.00 8.00 7.00 5.00

LKQ Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 5.00 5.00 6.00

Competitive Comparison of LKQ's Piotroski F-Score

For the Auto Parts subindustry, LKQ's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LKQ's Piotroski F-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, LKQ's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where LKQ's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 177 + 158 + 185 + 191 = $711 Mil.
Cash Flow from Operations was 212 + 253 + 213 + 420 = $1,098 Mil.
Revenue was 3501 + 3703 + 3711 + 3584 = $14,499 Mil.
Gross Profit was 1399 + 1452 + 1441 + 1393 = $5,685 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(15168 + 15079 + 15270 + 15211 + 15466) / 5 = $15238.8 Mil.
Total Assets at the begining of this year (Sep23) was $15,168 Mil.
Long-Term Debt & Capital Lease Obligation was $5,480 Mil.
Total Current Assets was $5,145 Mil.
Total Current Liabilities was $2,990 Mil.
Net Income was 194 + 270 + 281 + 208 = $953 Mil.

Revenue was 3001 + 3349 + 3448 + 3568 = $13,366 Mil.
Gross Profit was 1223 + 1372 + 1414 + 1390 = $5,399 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(11666 + 12038 + 12508 + 14155 + 15168) / 5 = $13107 Mil.
Total Assets at the begining of last year (Sep22) was $11,666 Mil.
Long-Term Debt & Capital Lease Obligation was $4,907 Mil.
Total Current Assets was $5,286 Mil.
Total Current Liabilities was $3,559 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

LKQ's current Net Income (TTM) was 711. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

LKQ's current Cash Flow from Operations (TTM) was 1,098. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=711/15168
=0.046875

ROA (Last Year)=Net Income/Total Assets (Sep22)
=953/11666
=0.08169038

LKQ's return on assets of this year was 0.046875. LKQ's return on assets of last year was 0.08169038. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

LKQ's current Net Income (TTM) was 711. LKQ's current Cash Flow from Operations (TTM) was 1,098. ==> 1,098 > 711 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=5480/15238.8
=0.35960837

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=4907/13107
=0.3743801

LKQ's gearing of this year was 0.35960837. LKQ's gearing of last year was 0.3743801. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=5145/2990
=1.72073579

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=5286/3559
=1.48524867

LKQ's current ratio of this year was 1.72073579. LKQ's current ratio of last year was 1.48524867. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

LKQ's number of shares in issue this year was 262.6. LKQ's number of shares in issue last year was 268.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5685/14499
=0.39209601

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5399/13366
=0.40393536

LKQ's gross margin of this year was 0.39209601. LKQ's gross margin of last year was 0.40393536. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=14499/15168
=0.95589399

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=13366/11666
=1.14572261

LKQ's asset turnover of this year was 0.95589399. LKQ's asset turnover of last year was 1.14572261. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+0+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

LKQ has an F-score of 6 indicating the company's financial situation is typical for a stable company.

LKQ  (NAS:LKQ) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


LKQ Piotroski F-Score Related Terms

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LKQ Business Description

Traded in Other Exchanges
Address
500 West Madison Street, Suite 2800, Chicago, IL, USA, 60661
Since forming in 1998 to consolidate the auto salvage business in the United States, LKQ has developed into a leading distributor of aftermarket and recycled auto parts with around 1,700 facilities across North America and Europe. The company primarily sells into the professional, or do-it-for-me, channel and offers an assortment of collision and mechanical parts to both body shops and mechanical repair shops. It also continues to operate more than 70 LKQ pick-your-part junkyards. Separate from the self-service business, LKQ typically purchases around 250,000 salvage vehicles annually that are used to extract vehicle parts for resale.
Executives
Rick Galloway officer: SVP and CFO 500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661
Matthew J Mckay officer: SVP of Human Resources 500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661
Justin L Jude officer: SVP Ops -- Wholesale Parts C/O LKQ CORPORATION, 500 W. MADISON STREET, SUITE 2800, CHICAGO IL 60661
Walter P Hanley officer: Senior VP of Development C/O LKQ CORPORATION, 120 NORTH LASALLE STREET, SUITE 3300, CHICAGO IL 60602
Patrick Berard director 500 W. MADISON STREET, SUITE 2800, CHICAGO IL 60661
Xavier Urbain director 500 W. MADISON STREET, SUITE 2800, CHICAGO IL 60661
Dominick P Zarcone director, officer: President and CEO C/O LKQ CORPORATION, 500 W. MADISON STREET, SUITE 2800, CHICAGO IL 60661
Blythe J Mcgarvie director HANNAFORD BROS CO, 145 PLEASANT HILL RD, SCARBOROUGH ME 04074
Varun Laroyia officer: Executive VP and CFO 500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661
Meg Divitto director 500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661
Robert M. Hanser director 500 W. MADISON STREET, SUITE 2800, CHICAGO IL 60661
John W Mendel director C/O TRUECAR, INC., 120 BROADWAY, SUITE 200, SANTA MONICA CA 90401
Valueact Capital Master Fund, L.p. director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Joseph M Holsten director, officer: President and CEO
Genevieve L Dombrowski officer: SVP -- Human Resources 500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661

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