LKQ Corporation (LKQ): a likely value trap?

Avoid — this is the second guidance cut in a row this year, revenue is shrinking, and free cash flow has collapsed toward zero.

⚠ TRAP Fundamentals59/100

Fell 14% in 1 trading day(s) — now $22.60

$59.4$21.2 peak $59 20222023202420252026

Why LKQ dropped

LKQ's stock crashed after Q2 2026 earnings missed on both revenue and profit, and management cut full-year adjusted EPS guidance to $2.60-$2.90 (from $2.90-$3.20, itself already cut once this year), citing a botched ERP software rollout in Germany that disrupted about $140 million of quarterly revenue and $50 million of European profit, plus ongoing weakness in the UK and Benelux.

Fwd P/E 6.8Op margin 7.0%Rev growth —Debt/equity 82.1%Analyst upside 74.8%
How this scored 59/100
✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.
✅ Makes money Net profit margin 3.4%
✅ Generates cash Free cash flow $717M
✅ Not drowning in debt Debt/equity 82.1% (limit 200%)
✅ Can pay its bills Current ratio 1.6 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 5/25
Operating margin 7.0% 3/9
Net profit margin 3.4% 1/8
Return on equity 7.1% 1/8
Growth Is it getting bigger, or dying? 13/25
Revenue growth unknown 3/9
Earnings growth unknown 2/8
Expected profit change 94.4% 8/8
Value Is it cheap right now? 24/25
Forward P/E 6.8 10/10
PEG ratio 0.9 7/8
Analyst target upside 74.8% 7/7
Balance sheet Will it survive? 17/25
Debt / equity 82.1% 7/10
Current ratio 1.6 3/8
Free cash flow $717M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-31. Research only — not financial advice.