LKQ Corporation
LKQ Consumer Cyclical Auto Parts
In the quarter to June 2026, revenue fell 2.99%, EPS fell 29.3%, free cash flow fell 75.3% and total debt rose 209.4%, each against the same quarter a year earlier. Dividend growth for five consecutive years.
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LKQ Corporation (LKQ) Altman Z-score
LKQ Corporation's Altman Z-score for fiscal 2025 is 2.57, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.57 | (0.14) |
| FY2024 | 2.71 | (0.12) |
| FY2023 | 2.83 | (0.99) |
| FY2022 | 3.82 | (0.01) |
| FY2021 | 3.83 | 0.93 |
| FY2020 | 2.91 | 0.15 |
| FY2019 | 2.76 | 0.04 |
| FY2018 | 2.72 | (0.86) |
| FY2017 | 3.58 | 0.31 |
| FY2016 | 3.28 | (1.41) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.14 | — | 0.17 | |
| Retained earnings / total assets | 0.53 | — | 0.74 | |
| EBIT / total assets | 0.07 | — | 0.22 | |
| Market value of equity / total liabilities | 0.91 | — | 0.54 | |
| Sales / total assets | 0.90 | — | 0.90 | |
| Altman Z-score | Grey zone | 2.57 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.87 | ||
Z and Z″ put LKQ Corporation in different zones: grey zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| GNTX Gentex Corporation compare | 9.3× |
| MBLY Mobileye Global Inc. compare | 8.2× |
| MOD Modine Manufacturing Company compare | 7.1× |
| ATMU Atmus Filtration Technologies Inc. compare | 5.6× |
| DORM Dorman Products, Inc. compare | 4.7× |
| ALV Autoliv, Inc. compare | 3.0× |
| LEA Lear Corporation compare | 2.9× |
| LKQ LKQ Corporation | 2.6× |
| GTX Garrett Motion Inc. compare | 2.0× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets