LIQUIDITY SERVICES INC (LQDT) Stock Fundamental Analysis
USA - NASDAQ:LQDT - US53635B1070 - Common Stock
23.62 USD
-0.44 (-1.83%)
23.62 USD
0 (0%)
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 has an excellent financial health rating, but there are some minor concerns on its profitability. LQDT is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, LQDT could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
LQDT had positive earnings in the past year.
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 (7.15%) is better than 80.95% of its industry peers.
The Return On Equity of LQDT (12.77%) is better than 75.00% of its industry peers.
With an excellent Return On Invested Capital value of 10.95%, LQDT belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
LQDT had an Average Return On Invested Capital over the past 3 years of 10.51%. This is in line with the industry average of 10.17%.
The last Return On Invested Capital (10.95%) for LQDT is above the 3 year average (10.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 12.77% | ||
| ROIC | 10.95% |
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 5.72% is fine compared to the rest of the industry. LQDT outperforms 70.24% of its industry peers.
LQDT's Profit Margin has declined in the last couple of years.
LQDT's Operating Margin of 7.06% is in line compared to the rest of the industry. LQDT outperforms 57.14% of its industry peers.
LQDT's Operating Margin has declined in the last couple of years.
LQDT's Gross Margin of 43.20% is fine compared to the rest of the industry. LQDT outperforms 78.57% of its industry peers.
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 | 7.06% | ||
| PM (TTM) | 5.72% | ||
| GM | 43.2% |
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.
The number of shares outstanding for LQDT remains at a similar level 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 4.62. This indicates that LQDT is financially healthy and has little risk of bankruptcy at the moment.
LQDT has a Altman-Z score of 4.62. This is in the better half of the industry: LQDT outperforms 76.19% 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 | 4.62 |
ROIC/WACC1.26
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.43 indicates that LQDT should not have too much problems paying its short term obligations.
LQDT has a Current ratio (1.43) which is in line with its industry peers.
LQDT has a Quick Ratio of 1.32. This is a normal value and indicates that LQDT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.32, LQDT is in line with its industry, outperforming 48.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.87% over the past year.
The Earnings Per Share has been growing slightly by 3.46% on average over the past years.
LQDT shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.40%.
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)28.87%
EPS 3Y3.46%
EPS 5YN/A
EPS Q2Q%13.33%
Revenue 1Y (TTM)38.4%
Revenue growth 3Y12.16%
Revenue growth 5Y9.91%
Sales Q2Q%28.05%
3.2 Future
The Earnings Per Share is expected to grow by 17.75% on average over the next years. This is quite good.
LQDT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.29% yearly.
EPS Next Y33.69%
EPS Next 2Y17.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year34.12%
Revenue Next 2Y17.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.90, LQDT is valued on the expensive side.
Based on the Price/Earnings ratio, LQDT is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LQDT to the average of the S&P500 Index (27.55), we can say LQDT is valued slightly cheaper.
LQDT is valuated correctly with a Price/Forward Earnings ratio of 16.54.
72.62% of the companies in the same industry are more expensive than LQDT, based on the Price/Forward Earnings ratio.
LQDT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
LQDT's Enterprise Value to EBITDA is on the same level as the industry average.
77.38% of the companies in the same industry are more expensive than LQDT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.51 | ||
| EV/EBITDA | 13.2 |
4.3 Compensation for Growth
LQDT's 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.
A more expensive valuation may be justified as LQDT's earnings are expected to grow with 17.75% in the coming years.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y17.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LQDT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.62
-0.44 (-1.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.47%
Inst Owner Change0.13%
Ins Owners25.39%
Ins Owner Change-0.88%
Market Cap737.89M
Analysts85
Price Target41.82 (77.05%)
Short Float %5.28%
Short Ratio4.66
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)6.21%
Min EPS beat(2)1.31%
Max EPS beat(2)11.11%
EPS beat(4)4
Avg EPS beat(4)12.31%
Min EPS beat(4)1.31%
Max EPS beat(4)24.78%
EPS beat(8)7
Avg EPS beat(8)10.77%
EPS beat(12)10
Avg EPS beat(12)10.99%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.19%
Min Revenue beat(2)-5.99%
Max Revenue beat(2)-2.39%
Revenue beat(4)2
Avg Revenue beat(4)4.53%
Min Revenue beat(4)-5.99%
Max Revenue beat(4)13.84%
Revenue beat(8)4
Avg Revenue beat(8)2.53%
Revenue beat(12)8
Avg Revenue beat(12)3.06%
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)0%
EPS NY rev (1m)3.05%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 16.54 | ||
| P/S | 1.59 | ||
| P/FCF | 17.51 | ||
| P/OCF | 14.53 | ||
| P/B | 3.54 | ||
| P/tB | 8.06 | ||
| EV/EBITDA | 13.2 |
EPS(TTM)1.25
EY5.29%
EPS(NY)1.43
Fwd EY6.05%
FCF(TTM)1.35
FCFY5.71%
OCF(TTM)1.63
OCFY6.88%
SpS14.9
BVpS6.68
TBVpS2.93
PEG (NY)0.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 12.77% | ||
| ROCE | 15.04% | ||
| ROIC | 10.95% | ||
| ROICexc | 46.39% | ||
| ROICexgc | N/A | ||
| OM | 7.06% | ||
| PM (TTM) | 5.72% | ||
| GM | 43.2% | ||
| FCFM | 9.05% |
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 Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 81.65% | ||
| Cap/Sales | 1.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.93% | ||
| Profit Quality | 158.18% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 4.62 |
F-Score7
WACC8.67%
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)28.87%
EPS 3Y3.46%
EPS 5YN/A
EPS Q2Q%13.33%
EPS Next Y33.69%
EPS Next 2Y17.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)38.4%
Revenue growth 3Y12.16%
Revenue growth 5Y9.91%
Sales Q2Q%28.05%
Revenue Next Year34.12%
Revenue Next 2Y17.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y27.66%
EBIT growth 3Y-3.88%
EBIT growth 5YN/A
EBIT Next Year88.76%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y4.51%
FCF growth 3Y0.74%
FCF growth 5YN/A
OCF growth 1Y10.26%
OCF growth 3Y2.39%
OCF growth 5YN/A