Liquidity Services Stock Analysis, Valuation (NASDAQ:LQDT)

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$6.9 $0 (0%) LQDT stock closing price Jul 20, 2018 (Closing)

Watch the robo advisor video of Liquidity Services stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for LQDT stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Liquidity Services, Inc. Stock Rating 1.5/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for LQDT stock analysis. We compare Liquidity Services valuation with its sector peers to gauge relative attractiveness of LQDT stock. Liquidity Services stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy LQDT stock?

  • LQDT stock is trading at a favorable price to sales multiple of 1 as against the Business Services sector average multiple of 1.6.

Should you sell LQDT stock?

  • Liquidity Services revenue saw a decline of -40.4% YoY in 2018-03.
  • Sales declined by -13.5 annually over the last 5 years.
  • Liquidity Services reported an average operating margin of -15.3 over the Last Twelve Months (LTM).
  • Liquidity Services posted an average Net loss of -12.7% in the last twelve months.
  • The company does not have profits. Hence the PE ratio is meaningless for LQDT stock.
  • Liquidity Services has a negative ROIC (Return on Invested Capital) of -91.3.
  • Liquidity Services has a negative ROE (Return On Equity) of -21.4, indicating the company is not profitable.

Comments on this video and Liquidity Services stock

Amigobulls Liquidity Services stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of LQDT stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Liquidity Services revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.