Definitive Analysis
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Definitive Analysis

Financial Statements

Periods / Units / Analysis

Ticker

Industry

Sector

LKQ Corporation (LKQ)

Company Dividend Discount ModelIndustry: Auto - PartsSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$27.44 - $43.30$34.69
Multi-Stage$38.41 - $42.07$40.21
Blended Fair Value$37.45
Current Price$30.54
Upside22.62%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%1.231.171.100.000.000.000.000.000.000.00
YoY Growth--5.30%6.34%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--2.89%2.19%1.93%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)697.00
(-) Cash Dividends Paid (M)312.00
(=) Cash Retained (M)385.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)139.4087.1352.28
Cash Retained (M)385.00385.00385.00
(-) Cash Required (M)-139.40-87.13-52.28
(=) Excess Retained (M)245.60297.88332.73
(/) Shares Outstanding (M)258.93258.93258.93
(=) Excess Retained per Share0.951.151.29
LTM Dividend per Share1.201.201.20
(+) Excess Retained per Share0.951.151.29
(=) Adjusted Dividend2.152.362.49
WACC / Discount Rate8.71%8.71%8.71%
Growth Rate0.80%1.80%2.80%
Fair Value$27.44$34.69$43.30
Upside / Downside-10.16%13.59%41.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)697.00709.52722.26735.23748.44761.88784.74
Payout Ratio44.76%53.81%62.86%71.91%80.95%90.00%92.50%
Projected Dividends (M)312.00381.80454.00528.67605.88685.69725.88

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.71%8.71%8.71%
Growth Rate0.80%1.80%2.80%
Year 1 PV (M)347.76351.21354.66
Year 2 PV (M)376.67384.18391.77
Year 3 PV (M)399.53411.54423.78
Year 4 PV (M)417.06433.86451.16
Year 5 PV (M)429.93451.68474.31
PV of Terminal Value (M)7,974.228,377.718,797.37
Equity Value (M)9,945.1710,410.1910,893.06
Shares Outstanding (M)258.93258.93258.93
Fair Value$38.41$40.21$42.07
Upside / Downside25.77%31.65%37.75%

High-Yield Dividend Screener

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