LKQ Corporation LKQ

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
65/100
Moderate

About LKQ Corporation

LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. The company operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. It offers bumper covers, automotive body panels, and lights, as well as paint and paint related consumables for refinishing vehicles; … Full LKQ analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 38.6% (top 16%) and operating margin at 7.3% (top 25%) indicate strong pricing power.
  • ROIC Sustainably Above Peers ROIC at 67.3th percentile exceeds peers and WACC, demonstrating superior capital allocation.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
76

Where LKQ ranks in Auto Parts

LKQ Corporation ranks #14 of 60 scored companies in Auto Parts by moat score — the top 23%. The widest moat in the group is Allison Transmission Holdings, (ALSN) at 83/100.

Moat scores for companies ranked near LKQ in Auto Parts
# Company Moat score Rating
10 Visteon Corporation VC 69/100 Moderate
11 STRATTEC SECURITY CORPORATION STRT 68/100 Moderate
12 Magna International, Inc. MGA 68/100 Moderate
13 Greenland Technologies Holding GTEC 66/100 Moderate
14 LKQ Corporation LKQ 65/100 Moderate
15 Motorcar Parts of America, Inc. MPAA 62/100 Moderate
16 Lear Corporation LEA 62/100 Moderate
17 PHINIA Inc. PHIN 62/100 Moderate
18 Miller Industries, Inc. MLR 62/100 Moderate

See every General Corporate company ranked by moat score →

How LKQ scores on the Corporate Default defenses

Pricing Power

Score 76 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 52 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 77 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 73 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 52 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 59 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding LKQ's moat

What is LKQ Corporation's moat score?

LKQ Corporation (LKQ) scores 65 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #14 of 60 scored companies in Auto Parts, the top 23%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 59 companies in Auto Parts. Its strongest defense is Customer Stickiness (77/100) and its weakest is Resilience (52/100).

How does LKQ Corporation compare with other Auto Parts companies?

LKQ Corporation ranks #14 of 60 scored companies in Auto Parts by moat score. The widest moat in Auto Parts is Allison Transmission Holdings, (ALSN) at 83/100. The companies ranked closest are Greenland Technologies Holding (GTEC) at 66 just above it and Motorcar Parts of America, Inc. (MPAA) at 62 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 59 companies in Auto Parts. The defenses are then weighted to produce the overall score out of 100.

Why is LKQ Corporation scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for LKQ Corporation?

The Corporate Default template measures 6 defenses, and LKQ scores: Pricing Power (76), Cost Advantage (52), Customer Stickiness (77), Capital Efficiency (73), Resilience (52), Scale & Market Position (59). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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