LIQUIDITY SERVICES INC (LQDT) Stock Fundamental Analysis
NASDAQ:LQDT - Nasdaq - US53635B1070 - Common Stock - Currency: USD
Taking everything into account, LQDT scores 6 out of 10 in our fundamental rating. LQDT was compared to 83 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, LQDT could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year LQDT was profitable.
LQDT had a positive operating cash flow in the past year.
LQDT had positive earnings in 4 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 better Return On Assets (7.03%) than 73.49% of its industry peers.
Looking at the Return On Equity, with a value of 12.85%, LQDT is in the better half of the industry, outperforming 71.08% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.90%, LQDT is doing good in the industry, outperforming 77.11% 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 11.67%.
The last Return On Invested Capital (10.90%) for LQDT is above the 3 year average (10.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 12.85% | ||
| ROIC | 10.9% |
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 has a Profit Margin of 5.75%. This is in the better half of the industry: LQDT outperforms 68.67% of its industry peers.
LQDT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.05%, LQDT is in line with its industry, outperforming 55.42% of the companies in the same industry.
LQDT's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 44.56%, LQDT is doing good in the industry, outperforming 77.11% 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 | 7.05% | ||
| PM (TTM) | 5.75% | ||
| GM | 44.56% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LQDT is still creating some value.
The number of shares outstanding for LQDT remains at a similar level compared to 1 year ago.
LQDT has less shares outstanding than it did 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
An Altman-Z score of 4.50 indicates that LQDT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.50, LQDT is doing good in the industry, outperforming 78.31% of the companies in the same industry.
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 | 4.5 |
ROIC/WACC1.08
WACC10.11%
2.3 Liquidity
LQDT has a Current Ratio of 1.35. This is a normal value and indicates that LQDT is financially healthy and should not expect problems in meeting its short term obligations.
LQDT has a Current ratio of 1.35. This is in the lower half of the industry: LQDT underperforms 65.06% of its industry peers.
A Quick Ratio of 1.22 indicates that LQDT should not have too much problems paying its short term obligations.
LQDT's Quick ratio of 1.22 is in line compared to the rest of the industry. LQDT outperforms 42.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.37% 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.
LQDT shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.76%.
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)27.37%
EPS 3Y3.46%
EPS 5YN/A
EPS Q2Q%14.81%
Revenue 1Y (TTM)35.76%
Revenue growth 3Y12.16%
Revenue growth 5Y9.91%
Sales Q2Q%27.25%
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 16.90% yearly.
LQDT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.99% yearly.
EPS Next Y21.81%
EPS Next 2Y16.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year37.63%
Revenue Next 2Y22.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.50 indicates a rather expensive valuation of LQDT.
LQDT's Price/Earnings ratio is a bit cheaper when compared to the industry. LQDT is cheaper than 67.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, LQDT is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.76, which indicates a correct valuation of LQDT.
67.47% of the companies in the same industry are more expensive than LQDT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, LQDT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 16.76 |
4.2 Price Multiples
LQDT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LQDT indicates a somewhat cheap valuation: LQDT is cheaper than 72.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.27 | ||
| EV/EBITDA | 13.76 |
4.3 Compensation for Growth
The 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 16.90% in the coming years.
PEG (NY)0.89
PEG (5Y)N/A
EPS Next 2Y16.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LQDT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.59
-0.06 (-0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners78.24%
Inst Owner Change8.5%
Ins Owners25.41%
Ins Owner Change-1%
Market Cap736.48M
Analysts85
Price Target41.82 (77.28%)
Short Float %6.29%
Short Ratio4.34
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)13.04%
Min EPS beat(2)1.31%
Max EPS beat(2)24.78%
EPS beat(4)4
Avg EPS beat(4)12.81%
Min EPS beat(4)1.31%
Max EPS beat(4)24.78%
EPS beat(8)7
Avg EPS beat(8)10.6%
EPS beat(12)9
Avg EPS beat(12)8.87%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)3.92%
Min Revenue beat(2)-5.99%
Max Revenue beat(2)13.84%
Revenue beat(4)3
Avg Revenue beat(4)5.96%
Min Revenue beat(4)-5.99%
Max Revenue beat(4)13.84%
Revenue beat(8)5
Avg Revenue beat(8)3.12%
Revenue beat(12)8
Avg Revenue beat(12)3%
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)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 16.76 | ||
| P/S | 1.68 | ||
| P/FCF | 16.27 | ||
| P/OCF | 13.7 | ||
| P/B | 3.75 | ||
| P/tB | 9.35 | ||
| EV/EBITDA | 13.76 |
EPS(TTM)1.21
EY5.13%
EPS(NY)1.41
Fwd EY5.97%
FCF(TTM)1.45
FCFY6.15%
OCF(TTM)1.72
OCFY7.3%
SpS14.07
BVpS6.29
TBVpS2.52
PEG (NY)0.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 12.85% | ||
| ROCE | 14.97% | ||
| ROIC | 10.9% | ||
| ROICexc | 39.06% | ||
| ROICexgc | N/A | ||
| OM | 7.05% | ||
| PM (TTM) | 5.75% | ||
| GM | 44.56% | ||
| FCFM | 10.31% |
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 Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 76.37% | ||
| Cap/Sales | 1.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 127.81% | ||
| Profit Quality | 179.39% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 4.5 |
F-Score7
WACC10.11%
ROIC/WACC1.08
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)27.37%
EPS 3Y3.46%
EPS 5YN/A
EPS Q2Q%14.81%
EPS Next Y21.81%
EPS Next 2Y16.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)35.76%
Revenue growth 3Y12.16%
Revenue growth 5Y9.91%
Sales Q2Q%27.25%
Revenue Next Year37.63%
Revenue Next 2Y22.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.47%
EBIT growth 3Y-3.88%
EBIT growth 5YN/A
EBIT Next Year82.65%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.04%
FCF growth 3Y0.74%
FCF growth 5YN/A
OCF growth 1Y2.31%
OCF growth 3Y2.39%
OCF growth 5YN/A