LKQ Corporation (LKQ) exhibits 38.6% gross margins and 8.5% return on invested capital within Consumer Discretionary (Motor Vehicles), balanced against a 4.8x enterprise multiple and 7.1% implied options volatility.
Sustained 38.6% gross profitability converts into 7.3% operating margin and 8.5% ROIC, outpacing sector cost of capital.
ROIC: 8.5% // GM: 38.6%YoY revenue trajectory of -1.2% paired with 9.80% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -1.2% // FCF YLD: 9.80%Altman Z-Score of 2.40 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 2.40 // F-SCORE: 7/9Trading at 7.5x trailing P/E (7.0x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 7.5x // EV/EBITDA: 4.8xOptions market prices a ±7.1% implied move with a 0.62 put/call ratio around $18.00 max pain.
IMPL MOVE: ±7.1% // P/C: 0.62Elevated industry capital intensity and customer concentration in Motor Vehicles require continuous execution to defend 4.5% net margins.
NET MARGIN: 4.5% // D/E: 0.47x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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