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LKQ vs NCLH

LKQ
LKQ Corporation
NEUTRAL
Price
$30.66
Market Cap
$7.82B
Sector
Consumer Cyclical
AI Confidence
80%
NCLH
Norwegian Cruise Line Holdings Ltd.
BEARISH
Price
$18.18
Market Cap
$8.28B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
LKQ
13.27
NCLH
19.76
Forward P/E
LKQ
9.27
NCLH
7.36
P/B Ratio
LKQ
1.2
NCLH
3.75
P/S Ratio
LKQ
0.57
NCLH
0.84
EV/EBITDA
LKQ
8.42
NCLH
9.27

Profitability

Gross Margin
LKQ
38.57%
NCLH
42.62%
Operating Margin
LKQ
6.43%
NCLH
8.31%
Profit Margin
LKQ
4.45%
NCLH
4.31%
ROE
LKQ
9.48%
NCLH
23.29%
ROA
LKQ
4.51%
NCLH
4.59%

Growth

Revenue Growth
LKQ
2.7%
NCLH
6.4%
Earnings Growth
LKQ
-57.7%
NCLH
--

Financial Health

Debt/Equity
LKQ
0.77
NCLH
7.03
Current Ratio
LKQ
1.67
NCLH
0.21
Quick Ratio
LKQ
0.48
NCLH
0.09

Dividends

Dividend Yield
LKQ
3.86%
NCLH
--
Payout Ratio
LKQ
51.95%
NCLH
0.0%

AI Verdict

LKQ NEUTRAL

LKQ presents a classic value trap profile: fundamentally cheap but suffering from severe earnings deterioration. While the Piotroski F-Score of 4/9 indicates stable financial health and the current price ($30.66) sits below the Graham Number ($36.5), the company is grappling with a catastrophic -57.7% YoY earnings collapse. The disconnect between the low P/E (13.27) and the bearish technical trend (0/100) suggests the market is pricing in continued fundamental decay despite analyst optimism.

Strengths
Attractive valuation multiples (P/E 13.27, P/S 0.57)
Trading below the Graham Number defensive fair value of $36.5
Sustainable dividend yield of 3.86% with a reasonable 51.95% payout ratio
Risks
Severe earnings contraction (-57.7% YoY growth)
Strongly bearish technical trend (0/100 score)
Poor long-term price performance (-26.2% over 5 years)
NCLH BEARISH

NCLH presents a high-risk profile characterized by a stable but mediocre Piotroski F-Score of 4/9 and a severe liquidity crisis. While analysts maintain a 'buy' rating based on a low forward P/E of 7.36 and a PEG of 0.43, the current price of $18.18 trades at a significant premium to both the Graham Number ($10.02) and the Intrinsic Value ($6.44). The company's balance sheet is critically leveraged with a Debt/Equity ratio of 7.03 and a Current Ratio of 0.21, indicating extreme difficulty in meeting short-term obligations.

Strengths
Low Forward P/E (7.36) suggesting potential valuation recovery
Attractive PEG Ratio (0.43) indicating growth is undervalued
Positive year-over-year revenue growth of 6.40%
Risks
Extreme leverage with a Debt/Equity ratio of 7.03
Critical liquidity risk evidenced by a Current Ratio of 0.21 and Quick Ratio of 0.09
Severe Q/Q earnings collapse (-94.40%)

Compare Another Pair

LKQ vs NCLH: Head-to-Head Comparison

This page compares LKQ Corporation (LKQ) and Norwegian Cruise Line Holdings Ltd. (NCLH) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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