Is LKQ Corp. LKQ stock halal to invest in?

No, as of August 2026, LKQ Corp. stock (LKQ) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. LKQ Corp. currently does not meet the threshold for the interest-bearing debt screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of LKQ Corp. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is LKQ Corp. LKQ reviewed for Shariah compliance?

Tabadulat reviews LKQ Corp. LKQ for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for LKQ Corp. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does LKQ Corp. LKQ pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, LKQ Corp. stock (LKQ) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. LKQ Corp.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does LKQ Corp. LKQ pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, LKQ Corp. stock (LKQ) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). LKQ Corp.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does LKQ Corp. LKQ pass the AAOIFI Interest Bearing Debt criteria?

No, as of August 2026, LKQ Corp. stock (LKQ) does not pass the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. LKQ Corp.'s interest-bearing debt currently exceeds this 30% limit, meaning the company relies on riba-based financing beyond the level AAOIFI permits for a halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for LKQ Corp. LKQ stock?

LKQ Corp. (LKQ) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If LKQ Corp. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does LKQ Corp. LKQ pass the AAOIFI Preference Share screen?

Yes, as of August 2026, LKQ Corp. stock (LKQ) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. LKQ Corp. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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العربية

LKQ Corp.

NASDAQ

Shariah-Compliant

Not Shariah

LKQ

About

LKQ Corp.

LKQ

LKQ Corporation is a leading global distributor of automotive replacement parts, specializing in both aftermarket and recycled components for cars, commercial vans, and industrial vehicles. Founded in 1998, the company has grown through a strategic combination of organic development and over 270 acquisitions, expanding its presence across North America, Europe, and other regions. LKQ offers a comprehensive product portfolio, including mechanical parts, collision parts, refurbished products like wheels and bumper covers, remanufactured engines and transmissions, and specialty aftermarket accessories. Its customer base spans collision and mechanical repair shops, dealerships, and retail consumers. Within Europe, LKQ operates subsidiaries such as Euro Car Parts and RHIAG Group, serving more than 100,000 independent workshops in over 20 countries. The company plays a critical role in the automotive supply chain by enabling cost-effective, sustainable vehicle repairs and supporting an efficient market for both new and recycled auto parts. Headquartered in Chicago, LKQ continues to be a significant force in the global automotive parts industry, emphasizing quality, scale, and market reach.

Sector:

Consumer Cyclical

Industry:

Auto Parts

Employees:

47000

Website:

https://www.lkqcorp.com

LKQ

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LKQ Corp.

About

LKQ Corp.

LKQ

Frequently asked questions

Is LKQ Corp. LKQ stock halal to invest in?

How often is LKQ Corp. LKQ reviewed for Shariah compliance?

Does LKQ Corp. LKQ pass the AAOIFI Non Permissible Income criteria?

Does LKQ Corp. LKQ pass the AAOIFI Interest Bearing Investments criteria?

Does LKQ Corp. LKQ pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for LKQ Corp. LKQ stock?

Does LKQ Corp. LKQ pass the AAOIFI Preference Share screen?

Can I buy LKQ stock on Tabadulat?

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