LIQUIDITY SERVICES INC (LQDT) Stock Fundamental Analysis
NASDAQ:LQDT - Nasdaq - US53635B1070 - Common Stock - Currency: USD
Overall LQDT gets a fundamental rating of 6 out of 10. We evaluated LQDT against 83 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.
In the past year LQDT had a positive cash flow from operations.
Of the past 5 years LQDT 4 years were profitable.
LQDT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LQDT (7.17%) is better than 74.70% of its industry peers.
LQDT's Return On Equity of 12.63% is fine compared to the rest of the industry. LQDT outperforms 72.29% of its industry peers.
LQDT has a Return On Invested Capital of 11.27%. This is in the better half of the industry: LQDT outperforms 78.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LQDT is in line with the industry average of 10.57%.
The last Return On Invested Capital (11.27%) for LQDT is above the 3 year average (10.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 12.63% | ||
| ROIC | 11.27% |
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's Profit Margin of 5.77% is fine compared to the rest of the industry. LQDT outperforms 72.29% of its industry peers.
LQDT's Profit Margin has declined in the last couple of years.
LQDT's Operating Margin of 7.38% is in line compared to the rest of the industry. LQDT outperforms 59.04% of its industry peers.
In the last couple of years the Operating Margin of LQDT has declined.
With an excellent Gross Margin value of 47.19%, LQDT belongs to the best of the industry, outperforming 81.93% 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 | 7.38% | ||
| PM (TTM) | 5.77% | ||
| GM | 47.19% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LQDT is creating some value.
LQDT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LQDT has less shares outstanding
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
An Altman-Z score of 5.95 indicates that LQDT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.95, LQDT belongs to the best of the industry, outperforming 87.95% of the companies in the same industry.
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 | 5.95 |
ROIC/WACC1.26
WACC8.97%
2.3 Liquidity
A Current Ratio of 1.39 indicates that LQDT should not have too much problems paying its short term obligations.
LQDT has a Current ratio of 1.39. This is in the lower half of the industry: LQDT underperforms 63.86% of its industry peers.
A Quick Ratio of 1.29 indicates that LQDT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.29, LQDT perfoms like the industry average, outperforming 44.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
LQDT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.95%, which is quite impressive.
LQDT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.46% yearly.
The Revenue has grown by 32.13% in the past year. This is a very strong growth!
LQDT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.91% yearly.
EPS 1Y (TTM)32.95%
EPS 3Y3.46%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)32.13%
Revenue growth 3Y12.16%
Revenue growth 5Y9.91%
Sales Q2Q%71.51%
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 18.58% yearly.
LQDT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.44% yearly.
EPS Next Y21.81%
EPS Next 2Y18.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year39.17%
Revenue Next 2Y23.44%
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
The Price/Earnings ratio is 27.03, which means the current valuation is very expensive for LQDT.
Compared to the rest of the industry, the Price/Earnings ratio of LQDT is on the same level as its industry peers.
LQDT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.10.
Based on the Price/Forward Earnings ratio of 21.84, the valuation of LQDT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, LQDT is valued a bit cheaper than 66.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LQDT to the average of the S&P500 Index (20.74), we can say LQDT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.03 | ||
| Fwd PE | 21.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LQDT is on the same level as its industry peers.
LQDT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LQDT is cheaper than 71.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.94 | ||
| EV/EBITDA | 19.98 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
LQDT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LQDT's earnings are expected to grow with 18.58% in the coming years.
PEG (NY)1.24
PEG (5Y)N/A
EPS Next 2Y18.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LQDT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.63
-0.44 (-1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners73.41%
Inst Owner Change0.35%
Ins Owners26.2%
Ins Owner Change-27.05%
Market Cap981.80M
Analysts85
Price Target41.82 (32.22%)
Short Float %6.9%
Short Ratio4.74
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)18.41%
Min EPS beat(2)12.04%
Max EPS beat(2)24.78%
EPS beat(4)4
Avg EPS beat(4)19%
Min EPS beat(4)12.04%
Max EPS beat(4)26.05%
EPS beat(8)7
Avg EPS beat(8)14.28%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)13.25%
Min Revenue beat(2)12.66%
Max Revenue beat(2)13.84%
Revenue beat(4)4
Avg Revenue beat(4)10.76%
Min Revenue beat(4)3.33%
Max Revenue beat(4)13.84%
Revenue beat(8)6
Avg Revenue beat(8)4.79%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)13.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.03 | ||
| Fwd PE | 21.84 | ||
| P/S | 2.37 | ||
| P/FCF | 16.94 | ||
| P/OCF | 14.66 | ||
| P/B | 5.19 | ||
| P/tB | 12.48 | ||
| EV/EBITDA | 19.98 |
EPS(TTM)1.17
EY3.7%
EPS(NY)1.45
Fwd EY4.58%
FCF(TTM)1.87
FCFY5.9%
OCF(TTM)2.16
OCFY6.82%
SpS13.35
BVpS6.09
TBVpS2.53
PEG (NY)1.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 12.63% | ||
| ROCE | 15.48% | ||
| ROIC | 11.27% | ||
| ROICexc | 38.04% | ||
| ROICexgc | N/A | ||
| OM | 7.38% | ||
| PM (TTM) | 5.77% | ||
| GM | 47.19% | ||
| FCFM | 13.99% |
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-Score8
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 76.66% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 158.18% | ||
| Profit Quality | 242.57% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 5.95 |
F-Score8
WACC8.97%
ROIC/WACC1.26
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)32.95%
EPS 3Y3.46%
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y21.81%
EPS Next 2Y18.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)32.13%
Revenue growth 3Y12.16%
Revenue growth 5Y9.91%
Sales Q2Q%71.51%
Revenue Next Year39.17%
Revenue Next 2Y23.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y29.94%
EBIT growth 3Y-3.88%
EBIT growth 5YN/A
EBIT Next Year91.72%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y132.4%
FCF growth 3Y0.74%
FCF growth 5YN/A
OCF growth 1Y107.29%
OCF growth 3Y2.39%
OCF growth 5YN/A