LIQUIDITY SERVICES INC (LQDT)
US53635B1070 - Common Stock
LQDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Commercial Services & Supplies industry. LQDT has an excellent financial health rating, but there are some minor concerns on its profitability. LQDT has a decent growth rate and is not valued too expensively.
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.
The reported net income has been mixed in the past 5 years: LQDT reported negative net income in multiple years.
Of the past 5 years LQDT 4 years had a positive operating cash flow.
1.2 Ratios
LQDT has a better Return On Assets (6.78%) than 84.34% of its industry peers.
LQDT has a Return On Equity of 11.42%. This is in the better half of the industry: LQDT outperforms 75.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.79%, LQDT belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LQDT is above the industry average of 10.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 11.42% | ||
| ROIC | 10.79% |
ROA(3y)13.72%
ROA(5y)5.78%
ROE(3y)25.59%
ROE(5y)11.35%
ROIC(3y)12.98%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of LQDT (6.02%) is better than 79.52% of its industry peers.
LQDT's Operating Margin of 7.51% is fine compared to the rest of the industry. LQDT outperforms 61.45% of its industry peers.
With an excellent Gross Margin value of 54.68%, LQDT belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
LQDT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.51% | ||
| PM (TTM) | 6.02% | ||
| GM | 54.68% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.85%
GM growth 5Y-0.24%
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.
The number of shares outstanding for LQDT has been reduced compared to 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
LQDT has an Altman-Z score of 4.39. This indicates that LQDT is financially healthy and has little risk of bankruptcy at the moment.
LQDT has a better Altman-Z score (4.39) than 78.31% of its industry peers.
LQDT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.39 |
ROIC/WACC1.17
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.29 indicates that LQDT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.29, LQDT is not doing good in the industry: 62.65% of the companies in the same industry are doing better.
A Quick Ratio of 1.15 indicates that LQDT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, LQDT perfoms like the industry average, outperforming 45.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.79% over the past year.
The Earnings Per Share has been growing by 149.33% on average over the past years. This is a very strong growth
Looking at the last year, LQDT shows a quite strong growth in Revenue. The Revenue has grown by 9.76% in the last year.
LQDT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.97% yearly.
EPS 1Y (TTM)15.79%
EPS 3Y149.33%
EPS 5YN/A
EPS growth Q2Q-26.32%
Revenue 1Y (TTM)9.76%
Revenue growth 3Y15.16%
Revenue growth 5Y6.97%
Revenue growth Q2Q-1.35%
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 13.28% yearly.
Based on estimates for the next years, LQDT will show a small growth in Revenue. The Revenue will grow by 4.49% on average per year.
EPS Next Y3.1%
EPS Next 2Y13.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.61%
Revenue Next 2Y4.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.40, LQDT is valued on the expensive side.
Based on the Price/Earnings ratio, LQDT is valued a bit cheaper than 71.08% of the companies in the same industry.
LQDT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.04, the valuation of LQDT can be described as correct.
77.11% of the companies in the same industry are more expensive than LQDT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LQDT to the average of the S&P500 Index (20.88), we can say LQDT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 15.04 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LQDT.
LQDT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LQDT is cheaper than 74.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.85 | ||
| EV/EBITDA | 12.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LQDT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LQDT may justify a higher PE ratio.
LQDT's earnings are expected to grow with 13.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.59
PEG (5Y)N/A
EPS Next 2Y13.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LQDT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LIQUIDITY SERVICES INC
NASDAQ:LQDT (5/3/2024, 7:04:06 PM)
After market: 18.35 +0.4 (+2.23%)17.95
+0.2 (+1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap551.42M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 15.04 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 11.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.51% | ||
| PM (TTM) | 6.02% | ||
| GM | 54.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.79%
EPS 3Y149.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.76%
Revenue growth 3Y15.16%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y