Liquidity Services (LQDT) AI Stock Analysis

• Market Cap: $852.77M
• Dividend Yield: N/A
• Average Volume (3M): 217.96K
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.82
• Revenue Growth: 38.40%
• EPS Growth: 32.42%
• Country: US
• Employees: 781
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.34
• Shares Outstanding: 31,236,938
• 10 Day Avg. Volume: 214,258
• 30 Day Avg. Volume: 217,959
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 3.10
• Enterprise Value/Ebitda: 13.86
• 1Y Price Target: $37.00
• Price Target Upside: 35.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $29.00 ▲(6.23% Upside)

Liquidity Services' overall stock score is driven by its strong financial performance and positive earnings call, highlighting robust growth and strategic initiatives. Technical analysis suggests short-term bullish momentum, though valuation concerns and cash flow challenges present potential risks. The recent board appointment is a positive strategic move.

Positive Factors

Revenue Growth

Consistent revenue growth and record GMV indicate strong market demand and effective business strategies, supporting long-term expansion.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial stability and flexibility, enabling the company to invest in growth opportunities without financial strain.

Board Appointment

The addition of an experienced board member can strengthen governance and strategic direction, supporting long-term growth and innovation.

Negative Factors

Profitability Margins

Declining profitability margins may indicate rising costs or pricing pressures, which could impact long-term financial performance if not addressed.

Cash Flow Challenges

Challenges in cash flow generation can limit the company's ability to fund operations and growth initiatives, affecting financial health over time.

Tariff and Economic Headwinds

Tariff-related challenges could hinder growth in key industrial categories, impacting revenue and profitability in affected segments.

Liquidity Services Business Overview & Revenue Model

Company Description

Liquidity Services (LQDT) is a leading provider of auction and liquidation services for surplus assets, primarily serving businesses, government agencies, and institutional clients. The company operates in various sectors, including retail, industrial, and government, offering a range of services such as online auctions, inventory management, and asset recovery. Its core products include platforms for auctioning surplus goods and a suite of services aimed at maximizing asset recovery and minimizing waste.

How the Company Makes Money

Liquidity Services generates revenue through multiple streams, primarily by facilitating online auctions where clients can sell surplus and excess inventory. The company earns fees from sellers based on the final sale price of items auctioned on its platforms. Additionally, it may charge buyers a premium for winning bids. The company also engages in asset recovery and management services, which provide clients with tailored solutions for inventory liquidation and surplus asset disposition. Partnerships with major retailers, government agencies, and manufacturers enhance its supply chain and inventory solutions, contributing significantly to its revenue. Factors such as market demand for used assets and the efficiency of its auction platforms also play a crucial role in its earnings.

Liquidity Services Financial Statement Overview

Summary

Liquidity Services demonstrates solid financial health with consistent revenue growth and low leverage. While profitability margins have faced some pressure, operational efficiency remains strong. Cash flow generation has been challenging recently, but the company maintains a robust cash conversion rate. Overall, the financial position is stable with opportunities for improvement in cost management and cash flow generation.

Income Statement

Liquidity Services has shown consistent revenue growth, with a TTM revenue growth rate of 5.98%. The gross profit margin has decreased from 57.36% in 2022 to 42.63% in TTM, indicating potential cost management issues. However, the net profit margin has remained stable, and the EBIT margin has improved slightly to 7.25% in TTM, suggesting operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.068 in TTM, indicating low financial leverage. Return on equity has improved to 13.72% in TTM, reflecting efficient use of equity. The equity ratio remains healthy, suggesting a stable financial position.

Cash Flow

Operating cash flow has decreased, impacting the operating cash flow to net income ratio, which stands at 0.33 in TTM. Free cash flow growth is negative at -6.90%, indicating potential challenges in generating cash. However, the free cash flow to net income ratio remains strong at 0.83, showing good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	465.51M	363.32M	314.46M	280.05M	257.53M	205.94M
Gross Profit	198.44M	185.17M	172.14M	160.64M	149.85M	109.92M
EBITDA	44.32M	35.52M	37.36M	57.98M	34.14M	3.32M
Net Income	26.65M	19.99M	20.98M	40.32M	50.95M	-3.77M
Balance Sheet
Total Assets	372.44M	346.89M	288.97M	288.10M	255.58M	196.63M
Cash, Cash Equivalents and Short-Term Investments	166.96M	155.54M	118.17M	97.94M	106.33M	76.04M
Total Debt	14.16M	14.44M	10.68M	14.23M	14.35M	11.32M
Total Liabilities	163.78M	164.33M	127.44M	133.57M	120.56M	84.82M
Stockholders Equity	208.65M	182.56M	161.53M	154.54M	135.01M	111.81M
Cash Flow
Free Cash Flow	42.15M	61.31M	41.63M	36.71M	59.97M	12.23M
Operating Cash Flow	50.77M	70.22M	47.02M	44.83M	65.42M	16.48M
Investing Cash Flow	-19.35M	-16.11M	-11.43M	-21.08M	-1.00M	28.65M
Financing Cash Flow	-5.41M	-11.17M	-22.07M	-31.94M	-34.66M	-5.70M

Liquidity Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LQDT, the sentiment is Positive. The current price of 27.3 is above the 20-day moving average (MA) of 27.23, above the 50-day MA of 25.99, and below the 200-day MA of 28.77, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 21.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LQDT.

Liquidity Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	76 Outperform	1.57B	34.94	9.66%	―	10.68%	37.84%
LQDT	74 Outperform	$852.77M	33.05	14.00%	―	38.40%	32.42%
RERE	69 Neutral	1.04B	39.50	-0.22%	―	27.53%	―
ARKO	64 Neutral	517.49M	59.15	5.53%	2.61%	-13.05%	-68.59%
TDUP	63 Neutral	1.13B	-18.55	-94.46%	―	-10.39%	14.92%
BNED	50 Neutral	333.73M	-0.17	―	―	1.38%	63.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Liquidity Services Corporate Events

Liquidity Services Appoints New Board Member

Liquidity Services announced the appointment of Paul J. Hennessy to its Board of Directors, effective October 1, 2025. Hennessy, an experienced CEO with a background in technology and marketplace businesses, will serve on the Corporate Governance and Nominating Committee and the Audit Committee. His appointment is expected to bolster Liquidity Services’ market presence and service offerings, aligning with the company’s strategic growth and innovation goals in the circular economy.