Liquidity Services Inc

Consumer Discretionary
Business Services
www.liquidityservices.com

Earnings Score
Moat Score

Market Cap $751.82M
PE 38
Debt $NaN
Cash $130.31M
EV $NaN
FCF $55.33M

Earnings

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Sales & Net Margins

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Earnings	$19.90M
EBIT	$27.74M
ROE	12%
ROA	9%
FCF	$55.33M
Equity	$171.97M
Growth Stability	72%
PE	37.79
PEG	17.23
PB	4.37
P/FCF	13.59
P/S	2.24
Price/Cash	0.17
Net Margins	5%
Gross Margins	54%
Op. Margins	8%
Earnings CAGR	0%
Sales Growth YoY	16%
Sales Growth QoQ	2%
Sales CAGR	0%
FCF CAGR	3%
Equity CAGR	-4%
Earnings Stability	0
Earnings Growth YoY	-8%

Earnings Growth QoQ	5%
Earnings CAGR 5Y	2%
Sales CAGR 5Y	11%
FCF CAGR 5Y	25%
Equity CAGR 5Y	11%
Earnings CAGR 3Y	10%
Sales CAGR 3Y	10%
FCF CAGR 3Y	-1%
Equity CAGR 3Y	9%
Market Cap	$751.82M
Revenue	$336.35M
Assets	$325.54M
Cash	$130.31M
Shares Outstanding	30.39M
Earnings Score	6%
Moat Score	87%
Working Capital	29.97M
Current Ratio	1.21
Gross Profit	$181.41M
Shares Growth 3y	-3%
Equity Growth QoQ	5%
Equity Growth YoY	10%

Assets & ROA

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Stockholders Equity & ROE

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Liquidity Services Inc is an online auction marketplace. It manages and sells inventory and equipment for business and government clients by operating a network of leading e-commerce marketplaces that enable buyers and sellers to transact in an efficient, automated environment offering over 500 product categories. The services provided by the company include program management, valuation, asset management, reconciliation, RTV and RMA (Return to Vendor and Returns Management Authorization), refurbishment and recycling, fulfillment, marketing and sales, warehousing and transportation, buyer support, compliance, and risk mitigation, as well as self-service tools.

SEC Filings

Direct access to Liquidity Services Inc (LQDT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Liquidity Services Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Liquidity Services Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 0%

Stability 0%

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Liquidity Services Inc Discounted Cash Flow

Fully customizable DCF calculator online for Liquidity Services Inc.

Years

Calculation mode

= $671M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$55M	$57M	$59M	$60M	$62M	$64M	$65M	$67M	$69M	$71M	$73M	$732M
DCF		$52M	$48M	$45M	$42M	$40M	$37M	$35M	$32M	$30M	$28M	$282M
Value	$671M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	TTM
Net Margins	-26%	-19%	-15%	-5%	-9%	-2%	20%	14%	7%	5%
ROA	-	-13%	-19%	-11%	-10%	-2%	11%	17%	10%	9%
ROE	-	-37%	-30%	-9%	-17%	-3%	38%	26%	13%	12%

Bad Net Margins (5.31%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	-	-	-	-	100%	72%	72%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (72%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	CAGR 5Y
Revenue YoY growth	-	-20%	-15%	-17%	1%	-9%	25%	9%	12%	11%
Earnings YoY growth	-	-43%	-35%	-70%	66%	-80%	-1K%	-21%	-48%	2%
Equity YoY growth	-	-25%	-18%	-2%	-10%	-4%	21%	14%	5%	11%
FCF YoY growth	-	10%	-199%	-91%	243%	-201%	388%	-39%	13%	25%