Taking everything into account, LQDT scores 6 out of 10 in our fundamental rating. 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 correct valuation and a medium growth rate. With these ratings, LQDT could be worth investigating further for quality investing!.

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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.
Each year in the past 5 years LQDT had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 7.49%, LQDT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
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.
LQDT had an Average Return On Invested Capital over the past 3 years of 11.05%. This 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 has a Profit Margin of 5.89%. This is in the better half of the industry: LQDT outperforms 72.50% of its industry peers.
In the last couple of years the Profit Margin of LQDT has declined.
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.
In the last couple of years the Operating Margin of LQDT has declined.
LQDT has a better Gross Margin (43.81%) than 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

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LQDT is still 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 5.36. This indicates that LQDT is financially healthy and has little risk of bankruptcy at the moment.
LQDT has a Altman-Z score of 5.36. This is amongst the best in the industry. LQDT outperforms 81.25% 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	5.36

ROIC/WACC1.37

WACC8.9%

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.
Looking at the Current ratio, with a value of 1.39, LQDT is in line with its industry, outperforming 46.25% of the companies in the same industry.
LQDT has a Quick Ratio of 1.30. 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 Quick ratio (1.30) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.39
Quick Ratio	1.3

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 26.21% over the past year.
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.
The Revenue has grown by 31.20% 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 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

Based on the Price/Earnings ratio of 24.46, 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 67.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of LQDT to the average of the S&P500 Index (27.21), we can say LQDT is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.78, LQDT is valued on the expensive side.
71.25% 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 similar valuation than the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	24.46
Fwd PE	20.78

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as LQDT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LQDT indicates a somewhat cheap valuation: LQDT is cheaper than 78.75% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	16.53
EV/EBITDA	16.84

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.