Liquidity Services, Inc.
Liquidity Services, Inc. Fundamental Analysis
Liquidity Services, Inc. (LQDT) shows moderate financial fundamentals with a PE ratio of 32.63, profit margin of 6.26%, and ROE of 14.46%. The company generates $0.5B in annual revenue with strong year-over-year growth of 31.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LQDT's fundamental strength across five key dimensions:
Efficiency Score
WeakLQDT struggles to generate sufficient returns from assets.
Valuation Score
WeakLQDT trades at a premium to fair value.
Growth Score
ExcellentLQDT delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLQDT maintains a strong and stable balance sheet.
Profitability Score
WeakLQDT struggles to sustain strong margins.
Key Financial Metrics
Is LQDT Expensive or Cheap?
P/E Ratio
LQDT trades at 32.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LQDT's PEG of 5.94 indicates potential overvaluation.
Price to Book
The market values Liquidity Services, Inc. at 4.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.10 times EBITDA. This signals the market has high growth expectations.
How Well Does LQDT Make Money?
Net Profit Margin
For every $100 in sales, Liquidity Services, Inc. keeps $6.26 as profit after all expenses.
Operating Margin
Core operations generate 7.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.46 in profit for every $100 of shareholder equity.
ROA
Liquidity Services, Inc. generates $8.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Liquidity Services, Inc. produces operating cash flow of $79.34M, showing steady but balanced cash generation.
Free Cash Flow
Liquidity Services, Inc. generates strong free cash flow of $70.98M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.29 in free cash annually.
FCF Yield
LQDT converts 7.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How LQDT Stacks Against Its Sector Peers
| Metric | LQDT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.63 | 25.25 | Worse (Expensive) |
| ROE | 14.46% | 1170.00% | Weak |
| Net Margin | 6.26% | 742.00% | Weak |
| Debt/Equity | 0.10 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.53 | 9.19 | Neutral |
| ROA | 8.07% | -6467.00% (disorted) | Weak |
LQDT outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Liquidity Services, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
151.51%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
908.87%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
340.23%
Industry Style: Cyclical, Growth, Discretionary
High Growth