LIQUIDITY SERVICES INC (LQDT) Stock Fundamental Analysis
NASDAQ:LQDT - Nasdaq - US53635B1070 - Common Stock - Currency: USD
LQDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. LQDT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. LQDT is not overvalued while it is showing excellent growth. This is an interesting combination. This makes LQDT very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year LQDT was profitable.
LQDT had a positive operating cash flow in the past year.
Of the past 5 years LQDT 4 years were profitable.
In the past 5 years LQDT always reported a positive cash flow from operatings.
1.2 Ratios
LQDT has a Return On Assets of 7.03%. This is in the better half of the industry: LQDT outperforms 75.00% of its industry peers.
LQDT has a Return On Equity of 12.85%. This is in the better half of the industry: LQDT outperforms 72.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.90%, LQDT is in the better half of the industry, outperforming 77.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LQDT is in line with the industry average of 11.60%.
The last Return On Invested Capital (10.90%) for LQDT is above the 3 year average (10.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 12.85% | ||
| ROIC | 10.9% |
ROA(3y)9%
ROA(5y)9%
ROE(3y)16.67%
ROE(5y)16.87%
ROIC(3y)10.51%
ROIC(5y)N/A
1.3 Margins
LQDT has a better Profit Margin (5.75%) than 70.24% of its industry peers.
In the last couple of years the Profit Margin of LQDT has declined.
LQDT has a Operating Margin (7.05%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LQDT has declined.
With a decent Gross Margin value of 44.56%, LQDT is doing good in the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Gross Margin of LQDT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.05% | ||
| PM (TTM) | 5.75% | ||
| GM | 44.56% |
OM growth 3Y-14.3%
OM growth 5YN/A
PM growth 3Y-34.71%
PM growth 5YN/A
GM growth 3Y-4.34%
GM growth 5Y-1.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LQDT is still creating some value.
LQDT has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LQDT has been reduced compared to 5 years ago.
LQDT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
LQDT has an Altman-Z score of 4.48. This indicates that LQDT is financially healthy and has little risk of bankruptcy at the moment.
LQDT has a Altman-Z score of 4.48. This is in the better half of the industry: LQDT outperforms 77.38% of its industry peers.
There is no outstanding debt for LQDT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.23
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.35 indicates that LQDT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.35, LQDT is not doing good in the industry: 65.48% of the companies in the same industry are doing better.
A Quick Ratio of 1.22 indicates that LQDT should not have too much problems paying its short term obligations.
The Quick ratio of LQDT (1.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.37% over the past year.
Measured over the past 5 years, LQDT shows a small growth in Earnings Per Share. The EPS has been growing by 3.46% on average per year.
Looking at the last year, LQDT shows a very strong growth in Revenue. The Revenue has grown by 35.76%.
Measured over the past years, LQDT shows a quite strong growth in Revenue. The Revenue has been growing by 9.91% on average per year.
EPS 1Y (TTM)27.37%
EPS 3Y3.46%
EPS 5YN/A
EPS Q2Q%14.81%
Revenue 1Y (TTM)35.76%
Revenue growth 3Y12.16%
Revenue growth 5Y9.91%
Sales Q2Q%27.25%
3.2 Future
LQDT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.90% yearly.
The Revenue is expected to grow by 22.99% on average over the next years. This is a very strong growth
EPS Next Y29.73%
EPS Next 2Y16.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year37.63%
Revenue Next 2Y22.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
LQDT is valuated rather expensively with a Price/Earnings ratio of 20.06.
Based on the Price/Earnings ratio, LQDT is valued a bit cheaper than the industry average as 65.48% of the companies are valued more expensively.
LQDT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
LQDT is valuated rather expensively with a Price/Forward Earnings ratio of 17.24.
Based on the Price/Forward Earnings ratio, LQDT is valued a bit cheaper than the industry average as 69.05% of the companies are valued more expensively.
LQDT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 17.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LQDT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LQDT indicates a somewhat cheap valuation: LQDT is cheaper than 72.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.74 | ||
| EV/EBITDA | 13.64 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LQDT may justify a higher PE ratio.
LQDT's earnings are expected to grow with 16.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y16.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LQDT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.27
+0.79 (+3.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners78.24%
Inst Owner Change-1.34%
Ins Owners25.41%
Ins Owner Change-0.97%
Market Cap757.71M
Analysts85
Price Target41.82 (72.31%)
Short Float %5.61%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.04%
Min EPS beat(2)1.31%
Max EPS beat(2)24.78%
EPS beat(4)4
Avg EPS beat(4)12.81%
Min EPS beat(4)1.31%
Max EPS beat(4)24.78%
EPS beat(8)7
Avg EPS beat(8)10.6%
EPS beat(12)9
Avg EPS beat(12)8.87%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)3.92%
Min Revenue beat(2)-5.99%
Max Revenue beat(2)13.84%
Revenue beat(4)3
Avg Revenue beat(4)5.96%
Min Revenue beat(4)-5.99%
Max Revenue beat(4)13.84%
Revenue beat(8)5
Avg Revenue beat(8)3.12%
Revenue beat(12)8
Avg Revenue beat(12)3%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.09%
EPS NY rev (1m)6.5%
EPS NY rev (3m)6.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 17.24 | ||
| P/S | 1.73 | ||
| P/FCF | 16.74 | ||
| P/OCF | 14.1 | ||
| P/B | 3.86 | ||
| P/tB | 9.62 | ||
| EV/EBITDA | 13.64 |
EPS(TTM)1.21
EY4.99%
EPS(NY)1.41
Fwd EY5.8%
FCF(TTM)1.45
FCFY5.97%
OCF(TTM)1.72
OCFY7.09%
SpS14.07
BVpS6.29
TBVpS2.52
PEG (NY)0.67
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 12.85% | ||
| ROCE | 14.97% | ||
| ROIC | 10.9% | ||
| ROICexc | 39.06% | ||
| ROICexgc | N/A | ||
| OM | 7.05% | ||
| PM (TTM) | 5.75% | ||
| GM | 44.56% | ||
| FCFM | 10.31% |
ROA(3y)9%
ROA(5y)9%
ROE(3y)16.67%
ROE(5y)16.87%
ROIC(3y)10.51%
ROIC(5y)N/A
ROICexc(3y)38.45%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)14.43%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-0.55%
ROICexc growth 5YN/A
OM growth 3Y-14.3%
OM growth 5YN/A
PM growth 3Y-34.71%
PM growth 5YN/A
GM growth 3Y-4.34%
GM growth 5Y-1.44%
F-Score7
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 76.37% | ||
| Cap/Sales | 1.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 127.81% | ||
| Profit Quality | 179.39% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 4.48 |
F-Score7
WACC8.87%
ROIC/WACC1.23
Cap/Depr(3y)66.68%
Cap/Depr(5y)69.16%
Cap/Sales(3y)2.35%
Cap/Sales(5y)2.25%
Profit Quality(3y)198.75%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.37%
EPS 3Y3.46%
EPS 5YN/A
EPS Q2Q%14.81%
EPS Next Y29.73%
EPS Next 2Y16.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)35.76%
Revenue growth 3Y12.16%
Revenue growth 5Y9.91%
Sales Q2Q%27.25%
Revenue Next Year37.63%
Revenue Next 2Y22.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.47%
EBIT growth 3Y-3.88%
EBIT growth 5YN/A
EBIT Next Year82.65%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.04%
FCF growth 3Y0.74%
FCF growth 5YN/A
OCF growth 1Y2.31%
OCF growth 3Y2.39%
OCF growth 5YN/A