LQDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. LQDT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LQDT is not valued too expensively and it also shows a decent growth rate. These ratings could make LQDT a good candidate for quality investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year LQDT was profitable.
LQDT had a positive operating cash flow in the past year.
Each year in the past 5 years LQDT has been profitable.
In the past 5 years LQDT always reported a positive cash flow from operatings.

1.2 Ratios

LQDT's Return On Assets of 7.49% is amongst the best of the industry. LQDT outperforms 81.25% of its industry peers.
LQDT has a better Return On Equity (13.82%) than 72.50% of its industry peers.
LQDT has a better Return On Invested Capital (12.23%) than 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 last Return On Invested Capital (12.23%) for LQDT is above the 3 year average (11.05%), which is a sign of increasing profitability.

		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

Looking at the Profit Margin, with a value of 5.89%, LQDT is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
LQDT's Profit Margin has declined in the last couple of years.
The Operating Margin of LQDT (7.58%) is better than 61.25% of its industry peers.
In the last couple of years the Operating Margin of LQDT has declined.
Looking at the Gross Margin, with a value of 43.81%, LQDT is in the better half of the industry, outperforming 78.75% of the companies in the same industry.
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

LQDT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LQDT has about the same amout of shares outstanding than it did 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 5.33 indicates that LQDT is not in any danger for bankruptcy at the moment.
LQDT's Altman-Z score of 5.33 is amongst the best of 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	5.33

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.
LQDT has a Current ratio of 1.39. This is comparable to the rest of the industry: LQDT outperforms 46.25% of its industry peers.
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.
The Quick ratio of LQDT (1.30) 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

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

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.
LQDT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.78 indicates a rather expensive valuation of LQDT.
LQDT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LQDT is cheaper than 71.25% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. LQDT is valued slightly cheaper when compared to this.

		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 77.50% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	16.53
EV/EBITDA	16.71

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.