32 USD
+0.35 (+1.11%)
32 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LQDT. LQDT was compared to 80 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making LQDT a very profitable company, without any liquidiy or solvency issues. LQDT has a decent growth rate and is not valued too expensively. These ratings would make LQDT suitable for quality investing!
1. Profitability
1.1 Basic Checks
- LQDT had positive earnings in the past year.
- LQDT had a positive operating cash flow in the past year.
- LQDT had positive earnings in each of the past 5 years.
- LQDT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- LQDT has a Return On Assets of 7.49%. This is amongst the best in the industry. LQDT outperforms 81.25% of its industry peers.
- Looking at the Return On Equity, with a value of 13.82%, LQDT is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 12.23%, LQDT belongs to the best of the industry, outperforming 82.50% 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 10.58%.
- The 3 year average ROIC (11.05%) for LQDT is below the current ROIC(12.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 13.82% | ||
| ROIC | 12.23% |
ROA(3y)6.84%
ROA(5y)10.88%
ROE(3y)12.59%
ROE(5y)20.31%
ROIC(3y)11.05%
ROIC(5y)11.54%
1.3 Margins
- LQDT's Profit Margin of 5.89% is fine compared to the rest of the industry. LQDT outperforms 72.50% of its industry peers.
- In the last couple of years the Profit Margin of LQDT has declined.
- LQDT has a Operating Margin of 7.58%. This is in the better half of the industry: LQDT outperforms 61.25% of its industry peers.
- In the last couple of years the Operating Margin of LQDT has declined.
- With a decent Gross Margin value of 43.81%, LQDT is doing good in the industry, outperforming 78.75% of the companies in the same industry.
- LQDT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.58% | ||
| PM (TTM) | 5.89% | ||
| GM | 43.81% |
OM growth 3Y-3.48%
OM growth 5YN/A
PM growth 3Y-25.73%
PM growth 5YN/A
GM growth 3Y-8.58%
GM growth 5Y-3.87%
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
- LQDT has an Altman-Z score of 5.32. This indicates that LQDT is financially healthy and has little risk of bankruptcy at the moment.
- LQDT's Altman-Z score of 5.32 is amongst the best of the industry. LQDT outperforms 81.25% 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 | 5.32 |
ROIC/WACC1.38
WACC8.86%
2.3 Liquidity
- LQDT has a Current Ratio of 1.39. This is a normal value and indicates that LQDT is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of LQDT (1.39) is comparable to the rest of the industry.
- A Quick Ratio of 1.30 indicates that LQDT should not have too much problems paying its short term obligations.
- LQDT's Quick ratio of 1.30 is in line compared to the rest of the industry. LQDT outperforms 48.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 26.21% over the past year.
- The Earnings Per Share has been growing by 84.99% on average over the past years. This is a very strong growth
- LQDT shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.20%.
- The Revenue has been growing by 18.28% on average over the past years. This is quite good.
EPS 1Y (TTM)26.21%
EPS 3Y20.12%
EPS 5Y84.99%
EPS Q2Q%15.62%
Revenue 1Y (TTM)31.2%
Revenue growth 3Y19.39%
Revenue growth 5Y18.28%
Sales Q2Q%10.44%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y17.69%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.98%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 24.62, which indicates a rather expensive current valuation of LQDT.
- Compared to the rest of the industry, the Price/Earnings ratio of LQDT indicates a somewhat cheap valuation: LQDT is cheaper than 66.25% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of LQDT to the average of the S&P500 Index (28.87), we can say LQDT is valued inline with the index average.
- With a Price/Forward Earnings ratio of 20.92, LQDT is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LQDT indicates a somewhat cheap valuation: LQDT is cheaper than 71.25% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. LQDT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.62 | ||
| Fwd PE | 20.92 |
4.2 Price Multiples
- LQDT's Enterprise Value to EBITDA is on the same level as the industry average.
- LQDT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LQDT is cheaper than 76.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.63 | ||
| EV/EBITDA | 16.61 |
4.3 Compensation for Growth
- LQDT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of LQDT may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)0.29
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- LQDT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LIQUIDITY SERVICES INC / LQDT FAQ
Can you provide the ChartMill fundamental rating for LIQUIDITY SERVICES INC?
ChartMill assigns a fundamental rating of 6 / 10 to LQDT.
Can you provide the valuation status for LIQUIDITY SERVICES INC?
ChartMill assigns a valuation rating of 4 / 10 to LIQUIDITY SERVICES INC (LQDT). This can be considered as Fairly Valued.
How profitable is LIQUIDITY SERVICES INC (LQDT) stock?
LIQUIDITY SERVICES INC (LQDT) has a profitability rating of 7 / 10.
How financially healthy is LIQUIDITY SERVICES INC?
The financial health rating of LIQUIDITY SERVICES INC (LQDT) is 7 / 10.