LKQ (LKQ) Stock Still Looks Cheap After a 65% Five Year Fall

LKQ Corporation has seen its share price fall sharply over the past few years, and the drop has accelerated in recent weeks. With the stock now at US$17.19, the key issue for anyone looking at LKQ is whether that price still lines up with what the business earns.

• Over the past 5 years, LKQ shares have declined 65.1%, which puts the focus squarely on whether the current market value is still anchored to its underlying earnings power.

• Recent leadership changes and operational problems in Europe, including impairment charges tied to that region, can reshape expectations for future profitability and the timing of cash generation from those operations.

• Your read on LKQ is one view; the desks covering it have another. See what analysts think LKQ’s shares could be worth.

For investors, the debate is whether LKQ’s current share price is justified by its earnings when set against a Fair Ratio benchmark.

If you want more context around LKQ and this kind of earnings pressure, it can help to compare it with other companies screened for 26 high quality undervalued stocks

Is LKQ a Bargain on Earnings?

The P/E ratio fits LKQ because earnings remain the main lens investors are using to judge the business. LKQ trades on a P/E of 9.4x, which is well below the Retail Distributors industry average of 15.7x and also below peers around 14.9x. On a simple earnings basis, the market is paying much less for each dollar of LKQ profit than it is for similar firms.

Because the Fair Ratio framework looks at LKQ’s own mix of growth assumptions, profitability and risk, it points to a higher earnings multiple than the one implied by the current share price. That places the stock in undervalued territory on this specific metric. Because management has withdrawn 2026 guidance after European operational issues and leadership changes, the low P/E suggests investors are building in a margin of safety around those challenges rather than paying up for a quick recovery. Explore the numbers behind LKQ’s P/E valuation.

The LKQ Narrative: What Would Justify Today’s Price?

Narratives on LKQ pick up where the P/E debate leaves off by spelling out which combinations of future growth, profitability and earnings paths would need to hold for the current price to look high or low. Each one treats LKQ’s fair value as a thesis about the business that can be tracked over time, rather than a single static estimate, and they sit on Simply Wall St’s Community page for you to explore.

One of the top community narratives on LKQ: 53% undervalued