+ Watch LKQ
on My Watchlist
The Company provides replacement systems, components, and parts needed to repair light vehicles.
Return forecast of 14-16% and excellent quality ranking: http://expectingalpha.com/2015/03/18/a-stroll-thru-the-junkyard-lkq/
22% predicted growth rate combined with strong past growth and moat makes this stock a potential long term winner.
Anticipate eps to range between $2.20 & 2.60 in three years time
Fair price for above average growth
Well run and expanding. taking over smaller companies and moving into Europe
Love it, love it, love it.....did I say I love it? Click on the Revenue/Growth rate and you will see it has consistently gained 25% over 1 year, 3 year and 5 year periods. This is a killer stock ready to soar!
As long as we have a depressed economy(maybe you haven't noticed) car parts to extend useable life will do well. And, the econ will take more than several years to improve.
When I think about LKQ, I picture someone sitting at a wrecked-car auction, frantically typing makes and models into a state-of-the-art tablet computer, which in turn spits back a maximum bid number based on everything from current inventory levels to historical sales numbers for that particular model. In other words: I think about a company that's bringing a lot of forward-looking strategy to an otherwise rust-caked industry. LKQ's technological bent, coupled with its prescient push towards industry-wide consolidation, gets me all revved up.
hey this hasn't been adjusted for the reverse split
LKQ has shown strong consistent growth for a number of years. Additionally, the company has been an industry leader and continues to own the market in the after-market auto part sector. LKQ has great management and should be able to maintain stability through depressed markets. LKQ is definitely a company for the long haul.
Recycle used parts, everyone needs to save money.
A well run company. They are much more customer friendly than the traditional salvage yard, and I think they are going to gain a huge amount of market share from local competitors as a result. Most salvage yards employees are dirty, rude, and act like they could care less if you purchased from them or not. And LKQ seems to be far more upfront and honest. Their self service parts prices are extremely competitive, about half of typical local prices, but I believe that they turn their inventory much faster and are able to sell more parts off each car before "crushing" them. They also operate wholesale yards which provide a great service to the professional automotive shops, body shops, etc. When GM wants $800 for a new fuel pump for a pickup, and LKQ has them for $20 (you have to remove it at that price), I would take a chance on a used part every time.
everything looks good
LKQ is the perfect option for the consumer in a down economy. Used and after market parts save people $$$$$$
I recently toured an LKQ yard and Keystone plant. They are doing great things. The Keystone plant was as busy as could be, running at full capacity refinishing bumpers and wheels. The LKQ yard was full of cars, and when the price of scrap rises, they will be even better. They make the most out of everything, from selling small parts and radios on eBay (seriously) to doing full fronts and rears. They have started a barcoding system to better inventory parts and all and all seam to be on the rise. LKQ recently (year or so) bought Keystone, making a really solid company that has become a favorite of many shops and insurance companies. I see LKQ benefiting from the troubled auto market, but also staying on top when the auto industry begins to pickup, after all, more cars on the road does mean more accidents and hence more business.
They are in the right business at the right time, a growing company that is going into the peak winter months.
Parts are cheaper than new cars.
This is one that has a consistent record of growth, particularlyy when times are tough.
First, a little about me. I was brought up in the auto repair business. My Grandfather, Father, myself, and my Uncle were auto repair mechanics. In 1987 after working for my dad and dealerships as a mechanic, tired of being greasy and sweaty, endlessly spending money on tools, I turned to being a partsman. I now work for a dealership with one of the the nation's largest collision centers and deal with LKQ on a daily basis. With over a million dollars in inventory at my dealership, I prefer to sell my own parts but, because of price, I have to call LKQ.In all my life, I have never known an auto recycler with any business sense that didn’t live a prosperous life. The used auto parts market is HUGE and always has been. Auto recyclers buy totaled, wrecked cars from insurance companies for pennies on the dollar. They then dismantle these cars and sell the parts for huge profits. Right now with economy the way it is, insurance companies are seeking less expensive ways to repair their customer's cars involved in accidents. For instance, a car is brought to our shop after an accident. The insurance company writes an estimate. They compare the cost of a new part to the cost of a part to that to a part from a company such as LKQ. The part from LKQ is always less expensive and I have to buy the part from them. Auto owners and mechanical repair shops are also seeking less expensive ways to repair cars when mechanical repairs are needed such as engines, transmissions, axles, rims, trim, radios, almost everything you can think of can be sold from these salvage vehicles. After all usable parts have been sold, the rest can be recycled, like steel, platinum, etc...(all U.S. cars have all types of metals such as catalytic converters that contain platinum). Have you ever thought of how much copper wire is in an automobile? In LKQ's description on MSN it reads LKQ is a provider of "light" vehicle parts. That does not mean "small" cars such as the the Mini Cooper. "Light vehicle" refers to all cars, trucks, and SUV's. However, LKQ is now venturing into the "heavy" market which is semi trucks that carry all of America's needs. As far as new cars that are being designed to be more fuel efficient coming out now and in the future, there will always be wrecked/totaled vechicles no matter how old or how new the car is. This company has approximately 300 locations across the US and Canada. Therefore, if they don’t have a particular part you need, it can be transferred from another location to you. If that is not available, they have also acquired aftermarket parts company Keystone, which is a preffered company by most insurance companies that can supply parts you need. All in one phone call. I play LKQX both long and short but truly believe LKQX is a good investment and will be around for a long time. Analysts always seem to talk BWA and TRW when it comes to automotive stocks but I believe they need to take a harder look at LKQX as I believe is far more worth looking at.If you would like to email me with questions, please do.
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