LKQ FCF Yield Analysis
Updated 9h ago·SEC filings & market data
Key Takeaway
FCF yield of 13.6% means the company generates free cash flow equal to 13.6% of its stock price per year, a measure of cash return available to investors.
Sector Performance
92th percentileLKQ
13.5%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
13.0%(Aug 2026)
Deep Analysis
FCF yield of 13.6% means the company generates free cash flow equal to 13.6% of its stock price per year, a measure of cash return available to investors.
This is well above the sector median of 4.2%, placing LKQ in the 92nd percentile among peers. The metric is stable, with a year-over-year increase of 3.0% and a quarter-over-quarter increase of 0.7%, supported by recent values ranging from 13.2% to 14.9%. A high and stable FCF yield suggests LKQ consistently converts earnings into cash without major swings, reducing cash-flow risk. The combination of a level far above peers and a stable trend points to a defensive cash profile, but also signals limited upside from improving cash generation. This metric supports the NEUTRAL verdict, as it confirms solid cash fundamentals that are already reflected in valuation rather than presenting a clear buy or sell trigger.
Frequently Asked Questions
What does the FCF Yield tell investors about LKQ?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are LKQ's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master LKQ's Valuation
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13.5%
Sector Median
4.2%
Sector Avg
9.2%
How LKQ's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.