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Is this Large Market Cap Stock target price reasonable for LKQ Corp. (NASDAQ:LKQ)?

The company in question is, LKQ Corp. (NASDAQ:LKQ) currently with a stock price of 34.88 (-0.88% today). The market cap for LKQ Corp. is 10742.8, and is in the sector Consumer Goods, and Auto Parts industry. The target price for LKQ Corp. is 38.11. Currently LKQ Corp. is trading with a P/E of 24.39, and a forward P/E of 16.95. Average volume for LKQ Corp. is 3022.54 and so far today it is 547571.

Performance in the last year for LKQ Corp. has been 11.75%. For EPS growth, LKQ Corp. has seen a growth of 10.40%, and is looking to grow in the next year to 13.13%. More long term stats show that EPS growth has been 19.10% over the last five years and could be 26.75% for the next five years. LKQ Corp. has seen sales growth quarter over quarter at 33.30%, with EPS growth quarter over quarter at 16.80%. The 20-day simple moving average is 6.04%, with the 200-day simple moving average coming to 14.81%.

Since the IPO date for LKQ Corp. on the 10/6/2003, LKQ Corp. has seen performance year to date to be 18.76%. With LKQ Corp. trading at 34.88, the dividend yield is *TBA, and the EPS is 1.44.

So could LKQ Corp., be undervalued? Well as said before P/E is 24.39. The PEG is 0.91, P/S is 1.35 and the P/B is at 3.26. The P/cash is 39.32, with P/free cash flow at 27.1.

LKQ Corp. ability to deal with debt shows that the current ratio is 2.8, and the quick ratio is 1.2. This is with long term debt/equity at 0.99, and total debt/equity at 1.01.

In terms of margins, LKQ Corp. has a gross margin of 38.90%, an operating margin of 9.10% and a profit margin of 5.60%.Payout ratio for LKQ Corp. is 0.00%. Return on assets come to 6.60% with return on investment coming to 10.30%.

Insider ownership for LKQ Corp., is at 0.90% and institutional ownership comes to 93.60%. Outstanding shares are at 305.28. While shares float is 304.05. The float short is currently 1.94%, and short ratio is 1.95.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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