Is LKQ CORP (LKQ) Halal?

NASDAQ Consumer Cyclical United States $7.4B
✗ NOT HALAL
Confidence: 90/100
LKQ CORP (LKQ) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 62.8% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. LKQ CORP operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 62.8%
/ 30%
4.0%
/ 30%
14.9%
/ 30%
0.23%
/ 5%
✗ NOT HALAL
DJIM 62.8%
/ 33%
4.0%
/ 33%
14.9%
/ 33%
0.23%
/ 5%
✗ NOT HALAL
MSCI 33.4%
/ 33%
2.1%
/ 33%
8.0%
/ 33%
0.23%
/ 5%
✗ NOT HALAL
S&P 62.8%
/ 33%
4.0%
/ 33%
14.9%
/ 33%
0.23%
/ 5%
✗ NOT HALAL
FTSE 33.4%
/ 33%
2.1%
/ 33%
8.0%
/ 50%
0.23%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
12.6
Forward: 8.8
EPS
$2.31
Dividend Yield
411.0%
Payout: 51.9%
P/B Ratio
1.1
EV/EBITDA
8.2
EV: $12.2B
Revenue
$13.7B
Growth: 2.7%
Beta
0.9
Average volatility
Current Ratio
1.7

Profitability

Gross Margin 38.6%
Operating Margin 6.4%
Net Margin 4.4%
Return on Equity (ROE) 9.5%
Return on Assets (ROA) 4.5%

Cash Flow & Balance Sheet

Operating Cash Flow$1.1B
Free Cash Flow$847M
Total Debt$5.1B
Debt-to-Equity77.1
Current Ratio1.7
Total Assets$15.1B

Price & Trading

Last Close$29.65
50-Day MA$32.16
200-Day MA$32.10
Avg Volume2.8M
Beta0.9
52-Week Range
$27.64
$43.47

About LKQ CORP (LKQ)

CEO
Mr. Justin L. Jude
Employees
44,000
Sector
Consumer Cyclical
Industry
Auto Parts
Country
United States
Exchange
NASDAQ
Market Cap
$7.4B
Currency
USD

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; mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; and lights and bumper assemblies. The company also provides scrap metal and other materials to metals recyclers; precious metals, such as catalytic converters; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, marine electronics, cargo management products, wheels, tires, and suspension products. It serves collision and mechanical repair shops, new and used car dealerships, and retail customers. The company operates in the United States, Canada, Germany, the United Kingdom, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Austria, Poland, Slovakia, France, and other European countries. LKQ Corporation was incorporated in 1998 and is headquartered in Antioch, Tennessee.

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Frequently Asked Questions

Is LKQ CORP (LKQ) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), LKQ CORP is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is LKQ CORP's debt ratio?

LKQ CORP's debt ratio is 62.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 33.4%.

What are LKQ CORP's key financial metrics?

LKQ CORP has a market capitalization of $7.4B, trailing P/E ratio of 12.6, and revenue of $13.7B. The company maintains a gross margin of 38.6% and a net margin of 4.4%. Return on equity stands at 9.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.