Liquidity Services Stock Analysis (NASDAQ:LQDT)

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$10.4 $0.2 (1.96%) LQDT stock closing price Dec 08, 2016 (Closing)
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Liquidity Services
Updated on : Dec 08, 2016
previous close
LQDT 10.4 (0%)
S&P 500 2246.2 (0%)
Closing Price On: Dec 08, 2016
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Auction Valuation services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
2.4%
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.8%
Operating Profit
Operating Margin:
-10.8%
Sector Average:
9.1%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Cash Flow
Operating cash flow:
$7.2M
Net Income:
-$53.8M
PROS      CONS
PS Valuation
Recent Growth
Long Term Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
LQDT PS :
1
Industry PS :
1.8
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-23.7%
Return on Equity:
-29.2%
Free Cash Flow Margin:
7.2%
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Liquidity Services Analysis Video

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View Liquidity Services stock analysis video. This is our LQDT analyst opinion covering the buy and sell arguments for LQDT stock.

Liquidity Services, Inc. Stock Rating (1.6/5)

Our Liquidity Services stock opinion is based on fundamentals of the company. This Liquidity Services stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy LQDT stock?

  • LQDT stock is trading at a favorable price to sales multiple of 1 as against the Auction Valuation services industry average multiple of 1.8.

Should you sell LQDT stock?

  • Liquidity Services sales declined by -1% year on year in 2016 Q4.
  • Over the last 5 years, the company registered a poor revenue growth of 2.4%.
  • Revenue declined at a CAGR of -0.8% of the last 5 years.
  • Liquidity Services registered a negative operating margin of -10.8% (average) over the Trailing Twelve Months (TTM).
  • Liquidity Services registered an average TTM Net loss of -18.9%.
  • The lack of profits renders the PE ratio useless for LQDT stock.
  • Liquidity Services's negative ROIC of -23.7% indicates operational inefficiency.
  • A negative ROE of -29.2% indicates that the company is not able to generate profits with the money shareholders have invested.

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