Gross Margin

Gross margin represents the percentage of revenue a company keeps after paying the direct costs of producing its goods — a higher margin typically indicates stronger pricing power or cost efficiency.

LKQ’s current gross margin of 38.4% falls below the sector median of 43.9%, placing the company in the 41st percentile among its peers, meaning 59% of comparable firms have higher margins. There is no data available for either the year-over-year change or the quarter-over-quarter change, and the trend direction over the last eight quarters is also not reported, so no recent trajectory can be assessed. Because the margin is below the sector median and there is no trend information, investors cannot determine whether this weakness is improving or worsening, adding uncertainty to the risk profile. The combination of a below-median level and unknown trend neither creates a clear opportunity nor flags an immediate risk, but it does suggest the company may face structural cost or pricing challenges relative to its peers. This metric supports the overall NEUTRAL verdict: it does not provide enough negative or positive momentum to shift the rating, but it does highlight a relative disadvantage that warrants monitoring.

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