Live Ventures (LIVE) AI Stock Analysis

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Live Ventures

(NASDAQ:LIVE)

50Neutral

Live Ventures faces financial headwinds with declining revenues, negative profitability, and high leverage. The technical analysis indicates some upward momentum, but caution is advised due to overbought signals. Valuation metrics are weak with a negative P/E ratio, and the recent earnings call reveals mixed operational results, highlighting both progress and ongoing challenges.

Live Ventures (LIVE) vs. S&P 500 (SPY)

Market Cap

$33.55M

Dividend YieldN/A

Average Volume (3M)18.10K

Price to Earnings (P/E)―

Beta (1Y)-0.25

Revenue Growth15.60%

EPS Growth-883.12%

CountryUS

Employees1,429

SectorConsumer Cyclical

Sector Strength56

IndustryHome Improvement

Share Statistics

EPS (TTM)-8.14

Shares Outstanding3,106,431

10 Day Avg. Volume33,917

30 Day Avg. Volume18,104

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.05

Price to Cash Flow (P/CF)0.60

P/FCF Ratio0.40

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Live Ventures Business Overview & Revenue Model

Company DescriptionLive Ventures Incorporated, together with its subsidiaries, engages in the flooring and steel manufacturing, and retail businesses in the United States. The company's Flooring Manufacturing segment manufactures and sells carpets and rugs, and yarn products focusing on the residential, niche commercial, and hospitality end-markets; and resells hard surface flooring products. This segment serves flooring dealers, home centers, and other flooring manufacturers, as well as directly to end users. Its Steel Manufacturing segment manufactures and sells pre-finished de-carb free tool and die steel products, such as deluxe alloy plates, deluxe tool steel plates, precision ground flat stock products, and drill rods. This segment serves steel distributors and steel service centers. The company's Retail segment operates 63 specialty entertainment retail storefronts that offer entertainment products, including new and pre-owned movies, video games, and music products, as well as ancillary products, such as books, comics, toys, and collectibles. It buys, sells, and trades in new and pre-owned movies, music, video games, electronics, and collectibles through 35 Vintage Stock, 3 V-Stock, 13 Movie Trading company, and 12 EntertainMart retail locations in Arkansas, Colorado, Idaho, Illinois, Kansas, Missouri, Nebraska, New Mexico, Oklahoma, Texas, and Utah, as well as sells new and used movies, video games, music, and toys through Website, vintagestock.com. This segment also offers services to customers, such as rentals, special orders, disc and video game hardware repair services, and other services. Its Corporate and Other segment provides product and service for new customers. Live Ventures Incorporated was incorporated in 1968 and is based in Las Vegas, Nevada.

How the Company Makes MoneyLive Ventures makes money primarily through the operations of its diverse portfolio of subsidiaries. Each subsidiary generates revenue from its specific sector activities, such as retail sales, manufacturing contracts, and service fees. The company benefits from the operational profits of its subsidiaries, reinvesting these earnings into further acquisitions and business expansions. Additionally, strategic management and cost efficiencies within these businesses contribute significantly to Live Ventures' earnings. Significant partnerships or market positions within their industries also play a crucial role in bolstering their revenue streams.

Live Ventures Financial Statement Overview

Summary

Live Ventures faces significant financial challenges with declining revenue, negative profitability margins, and high leverage. Despite some stability in gross profit margins, operational and cash flow inefficiencies are concerning. The company must address its leverage and improve operational performance to enhance financial health.

Income Statement

Neutral

The company has shown a decline in revenue growth with the latest TTM revenues at $466.8M compared to $472.8M in the prior annual period, indicating negative growth. The gross profit margin for TTM is approximately 30.8%, which is relatively stable but could be higher for the industry. However, the net profit margin is negative due to a net loss of $25.5M. EBIT and EBITDA margins are weak, with negative EBIT and a very low EBITDA margin, highlighting operational challenges.

Balance Sheet

Neutral

The debt-to-equity ratio is high, indicating significant leverage at 1.3, which is a potential risk. Stockholders' equity has decreased over time, now at $73.3M. The equity ratio stands at 18.5%, reflecting a moderate reliance on equity financing. The return on equity is negative due to net losses, signaling inefficiency in generating returns from equity.

Cash Flow

Negative

Free cash flow has decreased from $15.9M to $13.5M in the TTM, and the growth rate is negative. The operating cash flow to net income ratio is negative, reflecting operational inefficiencies. The free cash flow to net income ratio is also negative, indicating challenges in translating profits into cash.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
466.75M	472.84M	355.17M	286.91M	272.98M	191.72M
	Gross Profit
143.86M	144.82M	115.57M	97.83M	99.46M	75.32M
	EBIT
-16.42M	-13.64M	15.45M	13.07M	35.79M	20.42M
	EBITDA
10.98M	-13.64M	33.27M	29.47M	51.46M	20.42M
	Net Income Common Stockholders
-25.51M	-26.68M	-102.00K	24.74M	31.20M	10.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.77M	4.60M	4.31M	4.60M	4.66M	8.98M
	Total Assets
10.87M	407.55M	421.81M	278.64M	211.74M	197.26M
	Total Debt
128.62K	96.72M	244.53M	143.66M	94.16M	115.95M
	Net Debt
-5.34M	92.12M	240.22M	139.06M	89.50M	106.97M
	Total Liabilities
1.86M	334.66M	321.68M	181.47M	136.66M	153.59M
	Stockholders Equity
9.01M	72.89M	100.14M	97.61M	75.53M	43.94M
Cash Flow		Free Cash Flow
13.51M	12.14M	15.99M	2.45M	17.77M	24.91M
	Operating Cash Flow
22.14M	20.61M	26.00M	14.58M	29.19M	28.79M
	Investing Cash Flow
-20.11M	-21.48M	-63.88M	-40.04M	-17.42M	-8.78M
	Financing Cash Flow
-193.00K	1.16M	37.60M	25.39M	-16.09M	-13.71M

Live Ventures Technical Analysis

Technical Analysis Sentiment

Positive

Last Price10.40

Price Trends

50DMA

8.17

Positive

100DMA

8.88

Positive

200DMA

12.10

Negative

Market Momentum

MACD

0.89

Negative

RSI

64.36

Neutral

STOCH

35.48

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIVE, the sentiment is Positive. The current price of 10.4 is above the 20-day moving average (MA) of 9.04, above the 50-day MA of 8.17, and below the 200-day MA of 12.10, indicating a neutral trend. The MACD of 0.89 indicates Negative momentum. The RSI at 64.36 is Neutral, neither overbought nor oversold. The STOCH value of 35.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIVE.

Live Ventures Risk Analysis

Live Ventures disclosed 47 risk factors in its most recent earnings report. Live Ventures reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Live Ventures Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$6.78B	11.63	3.24%	4.20%	2.36%	-21.91%
HVT	59 Neutral	$290.03M	14.94	6.48%	7.10%	-16.15%	-66.79%
HVT.A	58 Neutral	$290.03M	14.96	6.48%	6.71%	-16.15%	-66.79%
SYPR	57 Neutral	$37.75M	―	-8.06%	―	2.90%	-5.75%
JRSH	51 Neutral	$36.39M	―	-5.77%	6.85%	15.70%	-337.22%
LIVE	50 Neutral	$33.55M	―	-29.55%	―	15.60%	-883.12%

* Consumer Cyclical Sector Average

Performance Comparison

LIVE

Live Ventures

10.40

-15.54

-59.91%

HVT.A

Haverty Furn Cl A SC

18.15

-11.70

-39.20%

HVT

Haverty

18.31

-11.94

-39.47%

SYPR

Sypris

1.70

0.28

19.72%

INTG

The Intergroup

13.78

-7.58

-35.49%

JRSH

Jerash Holdings (US)

2.96

0.10

3.50%

Live Ventures Earnings Call Summary

Earnings Call Date: Feb 6, 2025 | % Change Since: 7.33% | Next Earnings Date: May 19, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with notable achievements in the Retail-Entertainment and Steel Manufacturing segments, leading to improved operating performance and a return to positive net income. However, significant challenges remain due to decreased demand in the flooring industry, resulting in an overall revenue decline and increased expenses. While there are positive signs and strategic initiatives in place, the balance of highlights and lowlights suggests a cautious outlook.

Highlights

Retail-Entertainment Revenue Growth

Retail-Entertainment revenue increased by $700,000, or 3.3%, compared to the prior year period, reaching approximately $21.3 million due to an increase in the number of stores.

Improved Operating Performance in Key Segments

Retail-Entertainment and Steel Manufacturing segments delivered improved operating performance with increases in operating revenue and margins compared to the prior year period.

Positive Net Income and EPS

Net income for the quarter was approximately $500,000 with a diluted EPS of $0.16 compared to a net loss of $700,000 and a loss per share of $0.22 in the prior year period, partly due to gains from settlement activities.

Cash Availability and Stock Repurchases

Ended the quarter with total cash availability of $31.1 million and repurchased approximately 15,700 shares of common stock, indicating strong liquidity and capital allocation strategy.

Lowlights

Overall Revenue Decline

Total revenue for the quarter decreased by 5.2% to approximately $111.5 million, driven by declines in the Flooring Manufacturing, Retail-Flooring, and Steel Manufacturing segments.

Decreased Flooring Segment Revenue

Retail-Flooring segment revenue decreased by $2.6 million, or 7.5%, and Flooring Manufacturing segment revenue decreased by $3.2 million, or 11.1%, primarily due to reduced demand in the flooring industry.

Adjusted EBITDA Decline

Adjusted EBITDA for the quarter decreased by approximately $3 million compared to the prior year period.

Increased General and Administrative Expenses

General and administrative expenses increased by approximately $2.4 million to $30.1 million, driven by increased compensation and other expenses in the Retail-Flooring segment.

Company Guidance

During the Live Ventures FY 2025 First Quarter Earnings Conference Call, the company reported a 5.2% decrease in total revenue to approximately $111.5 million, with declines in the Flooring Manufacturing, Retail-Flooring, and Steel Manufacturing segments totaling around $6.7 million. However, the Retail-Entertainment segment saw a revenue increase of 3.3%, or $700,000, to approximately $21.3 million, driven by an increase in the number of stores. Despite a reduced demand in the flooring and steel industries, the company's gross margin improved to 31.7% from 30.9% in the prior year period. General and administrative expenses rose by $2.4 million to $30.1 million, while sales and marketing expenses decreased by $600,000 to $4.5 million. The company achieved a net income of approximately $500,000, translating to a diluted EPS of $0.16, compared to a net loss in the previous year. Adjusted EBITDA dropped by $3 million to $5.7 million. At the end of the quarter, the company had total cash availability of $31.1 million and working capital of approximately $51 million. The company repurchased about 15,700 shares of common stock during the quarter and expressed confidence in its long-term strategy despite current market challenges.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.