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%)
We assign a fundamental rating of 6 out of 10 to LQDT. LQDT was compared to 84 industry peers in the Commercial Services & Supplies industry. While LQDT has a great health rating, its profitability is only average at the moment. LQDT is growing strongly while it is still valued neutral. This is a good combination! This makes LQDT very considerable for growth 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.
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 better Return On Assets (7.15%) than 80.95% of its industry peers.
Looking at the Return On Equity, with a value of 12.77%, LQDT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
LQDT's Return On Invested Capital of 10.95% is amongst the best of the industry. LQDT outperforms 82.14% of its industry peers.
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
Looking at the Profit Margin, with a value of 5.72%, LQDT is in the better half of the industry, outperforming 70.24% of the companies in the same industry.
LQDT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.06%, LQDT perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
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.
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
An Altman-Z score of 4.57 indicates that LQDT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.57, LQDT is in the better half of the industry, outperforming 76.19% 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 | 4.57 |
ROIC/WACC1.26
WACC8.67%
2.3 Liquidity
LQDT has a Current Ratio of 1.43. This is a normal value and indicates that LQDT is financially healthy and should not expect problems in meeting its short term obligations.
LQDT's Current ratio of 1.43 is in line compared to the rest of the industry. LQDT outperforms 45.24% of 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.
The Quick ratio of LQDT (1.32) is comparable to the rest of the 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.
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 38.40% 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)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
Based on estimates for the next years, LQDT will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.75% on average per year.
The Revenue is expected to grow by 17.29% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 18.90, the valuation of LQDT can be described as rather expensive.
LQDT's Price/Earnings ratio is a bit cheaper when compared to the industry. LQDT is cheaper than 70.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of LQDT to the average of the S&P500 Index (27.53), we can say LQDT is valued slightly cheaper.
LQDT is valuated correctly with a Price/Forward Earnings ratio of 16.54.
Based on the Price/Forward Earnings ratio, LQDT is valued a bit cheaper than 72.62% of the companies in the same industry.
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
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 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.51 | ||
| EV/EBITDA | 12.89 |
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.
LQDT's earnings are expected to grow with 17.75% in the coming years. This may justify a more expensive valuation.
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 | 12.89 |
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 | 4.57 |
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