LKQNEUTRAL

LKQ Gross Margin Analysis

38.8%

Updated 9h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying the direct costs of producing goods, and LKQ's current 38.8% means it retains that much from each sales dollar before other expenses.

Sector Performance

37th percentile

LKQ

38.8%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

38.4%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after paying the direct costs of producing goods, and LKQ's current 38.8% means it retains that much from each sales dollar before other expenses.

This sits below the sector median of 44.3%, placing LKQ at the 42nd percentile among peers, so its core profitability trails the typical competitor. The year-over-year change is not available, but the quarter-over-quarter change is +1.0%, with historical values rising from 38.4% to 38.8% (most recent first). Because the level is below the sector norm yet improving on a quarterly basis, the risk is tied to whether this short-term gain can continue, while the opportunity lies in LKQ closing the gap with its peers. This metric supports the overall NEUTRAL verdict: the below-median gross margin tempers upside, but the recent uptick prevents a more bearish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about LKQ?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are LKQ's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.