We assign a fundamental rating of 5 out of 10 to LQDT. LQDT was compared to 80 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 valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Each year in the past 5 years LQDT has been profitable.
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 in the better half of the industry: LQDT outperforms 80.00% 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.
LQDT's Return On Invested Capital of 12.23% is amongst the best of the industry. LQDT outperforms 82.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LQDT is in line with the industry average of 10.57%.
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

With a decent Profit Margin value of 5.89%, LQDT is doing good in the industry, outperforming 71.25% of the companies in the same industry.
LQDT's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.58%, LQDT is doing good in the industry, outperforming 61.25% of the companies in the same industry.
LQDT's Operating Margin has declined in the last couple of years.
LQDT has a Gross Margin of 43.81%. This is in the better half of the industry: LQDT outperforms 78.75% of its industry peers.
In the last couple of years the Gross Margin of LQDT has declined.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for LQDT has been reduced compared to 5 years ago.
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.

2.2 Solvency

LQDT has an Altman-Z score of 5.37. This indicates that LQDT is financially healthy and has little risk of bankruptcy at the moment.
LQDT has a Altman-Z score of 5.37. This is amongst the best in 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	5.37

ROIC/WACC1.38

WACC8.88%

2.3 Liquidity

A Current Ratio of 1.39 indicates that LQDT should not have too much problems paying 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 has a Quick ratio of 1.30. This is comparable to the rest of the industry: LQDT outperforms 47.50% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.39
Quick Ratio	1.3

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

LQDT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.21%, which is quite impressive.
Measured over the past years, LQDT shows a very strong growth in Earnings Per Share. The EPS has been growing by 84.99% on average per year.
LQDT shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.20%.
LQDT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.28% yearly.

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.62 indicates a rather expensive valuation of LQDT.
65.00% of the companies in the same industry are more expensive than LQDT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.30, LQDT is valued at the same level.
A Price/Forward Earnings ratio of 20.92 indicates a rather expensive valuation of LQDT.
Based on the Price/Forward Earnings ratio, LQDT is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LQDT to the average of the S&P500 Index (25.57), we can say LQDT is valued inline with the index average.

		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.
76.25% 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	16.63
EV/EBITDA	16.94

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.