Value Investing with Sven Carlin, Ph.D.Published 2026-10-15
“GPC (Best Value), AZO, ORLY, AAP, LKQ, AIT, GWW, FAST, MSM - Sector Analysis”
$LKQNo side taken
LKQ is the cheapest in its group at a P/E of 12, but has not grown for years, faces Europe ERP problems that usually take a few quarters, and has a free cash flow risk. LKQ could be repriced if the ERP situation and these numbers improve, but this is only a possibility and he has no insight whether it will happen.
LKQ is the cheapest company in this group. They have been facing some problems in Europe with regard to the implementation of the new Enterprise Resource Planning (ERP) system .
It usually takes the company a few quarters . So, if the situation improves, it could be interesting. The price-to-earnings ratio is 12, and the dividend payout is 5%. They haven't grown in a few years, which also creates a problem .
This could also become a problem if the current free cash flow situation is not resolved. It's a cheap makeover process. If you want to check the workflow of the ERP system, if they can improve these numbers, the stock will be repriced.
However, it remains just a possibility, and I have no insight into whether that will happen.