NasdaqGS:LQDT

Stock Analysis Report

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Executive Summary

Liquidity Services, Inc. provides e-commerce marketplace that enable buyers and sellers to transact in an automated environment offering approximately 500 product categories.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Liquidity Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LQDT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

20.8%

LQDT

0.2%

US Online Retail

0.5%

US Market


1 Year Return

11.5%

LQDT

64.6%

US Online Retail

18.7%

US Market

Return vs Industry: LQDT underperformed the US Online Retail industry which returned 64.6% over the past year.

Return vs Market: LQDT underperformed the US Market which returned 18.7% over the past year.


Shareholder returns

LQDTIndustryMarket
7 Day20.8%0.2%0.5%
30 Day42.0%4.3%4.9%
90 Day50.0%30.4%19.8%
1 Year11.5%11.5%64.7%64.6%21.2%18.7%
3 Year27.2%27.2%120.4%120.2%46.2%36.8%
5 Year-1.6%-1.6%330.5%329.6%85.3%65.1%

Price Volatility Vs. Market

How volatile is Liquidity Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Liquidity Services undervalued compared to its fair value and its price relative to the market?

32.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LQDT ($7.44) is trading below our estimate of fair value ($11.04)

Significantly Below Fair Value: LQDT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LQDT is unprofitable, so we can't compare its PE Ratio to the US Online Retail industry average.

PE vs Market: LQDT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LQDT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LQDT is good value based on its PB Ratio (2.3x) compared to the US Online Retail industry average (4.8x).


Next Steps

Future Growth

How is Liquidity Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if LQDT's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if LQDT's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LQDT's revenue (12.6% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: LQDT's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LQDT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Liquidity Services performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LQDT is currently unprofitable.

Growing Profit Margin: LQDT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LQDT is unprofitable, but has reduced losses over the past 5 years at a rate of 33.6% per year.

Accelerating Growth: Unable to compare LQDT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LQDT is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (-7.4%).


Return on Equity

High ROE: LQDT has a negative Return on Equity (-13.11%), as it is currently unprofitable.


Next Steps

Financial Health

How is Liquidity Services's financial position?


Financial Position Analysis

Short Term Liabilities: LQDT's short term assets ($94.9M) exceed its short term liabilities ($80.2M).

Long Term Liabilities: LQDT's short term assets ($94.9M) exceed its long term liabilities ($8.4M).


Debt to Equity History and Analysis

Debt Level: LQDT is debt free.

Reducing Debt: LQDT has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable LQDT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LQDT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 41.5% per year.


Next Steps

Dividend

What is Liquidity Services's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LQDT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LQDT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LQDT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LQDT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LQDT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Bill Angrick (52 yo)

20.58yrs

Tenure

US$2,286,050

Compensation

Mr. William P. Angrick, III, also known as Bill, is a co-founder of Liquidity Services Inc. (“Liquidity Services”). Mr. Angrick the Chairman of the Board of Directors and Chief Executive Officer of Liquidi ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD2.29M) is above average for companies of similar size in the US market ($USD1.27M).

Compensation vs Earnings: Bill's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
William Angrick
Co-founder20.58yrsUS$2.29m20.26%
$ 49.7m
Jorge Celaya
Executive VP & CFO5yrsUS$1.06m0.19%
$ 456.4k
Mark Shaffer
VP, General Counsel & Corporate Secretary4.08yrsUS$778.30k0.059%
$ 144.1k
Michael Lutz
Vice President of Human Resources8.58yrsUS$689.55k0.18%
$ 449.1k
Roger Gravley
Senior Advisor1.25yrsUS$1.20mno data
John Daunt
Executive VP & Chief Commercial Officer1.33yrsUS$879.49k0.17%
$ 409.0k
Steven Weiskircher
Chief Technology Officerno datano datano data
Julie Davis
Senior Director of Investor Relationsno datano datano data
Nicholas Rozdilsky
Chief Marketing Officerno datano data0.055%
$ 134.6k

4.5yrs

Average Tenure

54yo

Average Age

Experienced Management: LQDT's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Angrick
Co-founder20.58yrsUS$2.29m20.26%
$ 49.7m
Patrick Gross
Independent Lead Director7yrsUS$147.50k0.20%
$ 494.9k
Beatriz Infante
Independent Director6.25yrsUS$149.50k0.19%
$ 473.7k
Phillip Clough
Independent Director15.92yrsUS$147.50k0.17%
$ 419.8k
George Ellis
Independent Director10.25yrsUS$155.00k0.091%
$ 222.5k
Jaime Mateus-Tique
Director20.33yrsUS$140.00k2.32%
$ 5.7m
Edward Kolodzieski
Independent Director4.75yrsUS$142.00k0.17%
$ 424.5k
Katharin Dyer
Independent Director0.58yrno datano data

8.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: LQDT's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LQDT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Liquidity Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Liquidity Services, Inc.
  • Ticker: LQDT
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$245.465m
  • Shares outstanding: 34.05m
  • Website: https://www.liquidityservices.com

Number of Employees


Location

  • Liquidity Services, Inc.
  • 6931 Arlington Road
  • Suite 200
  • Bethesda
  • Maryland
  • 20814
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LQDTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2006
L1SDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2006

Biography

Liquidity Services, Inc. provides e-commerce marketplace that enable buyers and sellers to transact in an automated environment offering approximately 500 product categories. The company’s marketplaces inc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 12:01
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.