LKQNEUTRAL

LKQ Return on Equity (ROE) Analysis

7.1%

Updated 9h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures the profit a company generates from every dollar of shareholder investment; LKQ's 7.1% means it earns $0.071 per $1 of equity.

Sector Performance

27th percentile

LKQ

7.1%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

8.1%(Jul 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures the profit a company generates from every dollar of shareholder investment; LKQ's 7.1% means it earns $0.071 per $1 of equity.

That return sits below the sector median of 13.8%, placing LKQ in the 26th percentile among sector peers. The trend data are limited: the year-over-year change is N/A, while the quarter-over-quarter change is -12.3%. The combination of a below-median return and a recent quarterly decline signals weaker profitability momentum relative to the rest of the sector. Because the low level and negative quarter create added risk rather than an opportunity, this metric does not indicate a reason to upgrade the stock. It therefore supports the overall NEUTRAL verdict, as the ROE offers neither a clear bullish nor bearish edge beyond confirming average-to-weak performance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about LKQ?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are LKQ's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.