Liquidity Services (LQDT) AI Stock Analysis

• Market Cap: $815.80M
• Dividend Yield: N/A
• Average Volume (3M): 243.16K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.73
• Revenue Growth: 35.78%
• EPS Growth: 23.49%
• Country: US
• Employees: 781
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Specialty Retail
• EPS (TTM): 0.31
• Shares Outstanding: 31,220,722
• 10 Day Avg. Volume: 207,316
• 30 Day Avg. Volume: 243,158
• PEG Ratio: 5.86
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.87
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 4.05
• 1Y Price Target: $40.00
• Price Target Upside: 59.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: $28.00 ▲(11.51%Upside)

Liquidity Services has a strong financial foundation with solid revenue growth and a robust balance sheet. The recent earnings call and strategic board appointment are positive signals, contributing to a favorable outlook. However, the technical analysis indicates some caution with longer-term trends, and the valuation suggests the stock may be overvalued. Overall, the stock presents a solid investment opportunity with potential for growth, tempered by valuation concerns.

Positive Factors

Financial Flexibility

The company has a debt-free balance sheet with significant cash and investment flexibility for organic and inorganic growth.

Market Position

Liquidity Services, Inc. holds a leadership position in the circular economy with its extensive marketplace offering maximum value to sellers and competitive auction pricing for buyers.

Negative Factors

Earnings Guidance

LSI’s Q2/25 results were at the low end of guidance ranges due to weather-related events, product mix and expenses related to new programs.

Stock Price Performance

The decline in the stock price by over 20% is viewed as a buying opportunity due to expected improvements in the second half of the fiscal year.

Liquidity Services Business Overview & Revenue Model

Company Description

Liquidity Services, Inc. provides e-commerce marketplaces, self-directed auction listing tools, and value-added services. It operates through four segments: Retail Supply Chain Group, Capital Assets Group, GovDeals, and Machinio. The company's marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and retail capital assets; GovDeals marketplace, which provides self-directed service solutions in which sellers list their own assets that enables local and state government entities, and commercial businesses located in the United States and Canada to sell surplus and salvage assets; and AllSurplus, a centralized marketplace that connects global buyer base with assets from across the network of marketplaces in a single destination. It also provides marketplace for corporations located in the North America, Europe, Australia, Asia, and Africa to sell manufacturing surplus, salvage capital assets, and scrap material, as well as offers a suite of services, including surplus management, asset valuation, asset sales, marketing, returns management, asset recovery, and ecommerce services. In addition, the company operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing, and agriculture sectors. It offers products from industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, real estate, energy equipment, industrial capital assets, heavy equipment, fleet and transportation equipment, and specialty equipment. Liquidity Services, Inc. was incorporated in 1999 and is headquartered in Bethesda, Maryland.

How the Company Makes Money

Liquidity Services generates revenue through multiple streams, primarily by charging transaction fees on the sales conducted through its online marketplaces. The company operates several platforms tailored to different sectors, including GovDeals for government surplus, Liquidation.com for wholesale surplus, and Network International for the energy sector. These platforms allow clients to list and sell their surplus assets, with Liquidity Services earning a commission on each sale. Additionally, the company may charge service fees for valuation, asset management, and logistics services provided to facilitate the sale process. Strategic partnerships with large retailers and government agencies also contribute to its revenue by securing a steady flow of surplus goods for its marketplaces.

Liquidity Services Financial Statement Overview

Summary

Liquidity Services demonstrates solid financial health with strong revenue growth and profitability. The balance sheet is robust, characterized by low leverage and high equity ratios, ensuring financial stability. Cash flow generation is strong, though there is a slight decline in free cash flow growth, indicating potential challenges in sustaining momentum.

Income Statement

Liquidity Services has shown strong revenue growth over the years, with a notable revenue increase of 20.92% in the TTM compared to the previous year. The gross profit margin stands at 44.54%, indicating efficient cost management. The net profit margin improved to 5.75%, reflecting overall profitability. However, the EBIT margin and EBITDA margin are moderate at 6.61% and 9.32%, respectively, suggesting room for improvement in operating efficiency.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.08, indicating a conservative leverage approach. The return on equity (ROE) is healthy at 12.86%, showing effective utilization of equity. The equity ratio is strong at 54.73%, signifying financial stability and a solid capital structure.

Cash Flow

Operating cash flow to net income ratio is 2.13, indicating strong cash generation relative to earnings. Free cash flow has declined slightly, but the free cash flow to net income ratio remains high at 1.79, displaying efficient cash conversion. The free cash flow growth rate has slowed, highlighting potential challenges in sustaining cash flow momentum.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	363.32M	314.46M	280.05M	257.53M	205.94M
Gross Profit	185.17M	172.14M	160.64M	149.85M	109.92M
EBITDA	35.52M	37.36M	57.98M	34.14M	3.32M
Net Income	19.99M	20.98M	40.32M	50.95M	-3.77M
Balance Sheet
Total Assets	346.89M	288.97M	288.10M	255.58M	196.63M
Cash, Cash Equivalents and Short-Term Investments	155.54M	118.17M	97.94M	106.33M	76.04M
Total Debt	14.24M	10.68M	14.23M	14.35M	11.32M
Total Liabilities	164.33M	127.44M	133.57M	120.56M	84.82M
Stockholders Equity	182.56M	161.53M	154.54M	135.01M	111.81M
Cash Flow
Free Cash Flow	61.31M	41.63M	36.71M	59.97M	12.23M
Operating Cash Flow	70.22M	47.02M	44.83M	65.42M	16.48M
Investing Cash Flow	-16.11M	-11.43M	-21.08M	-1.00M	28.65M
Financing Cash Flow	-11.17M	-22.07M	-31.94M	-34.66M	-5.70M

Liquidity Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.11
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LQDT, the sentiment is Neutral. The current price of 25.11 is above the 20-day moving average (MA) of 24.40, above the 50-day MA of 24.18, and below the 200-day MA of 28.20, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 69.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LQDT.

Liquidity Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LQDT	80 Outperform	$815.80M	33.13	14.01%	―	35.78%	23.49%
RVLV	75 Outperform	$1.57B	31.33	11.97%	―	9.09%	106.50%
RERE	68 Neutral	$797.98M	50.00	3.45%	―	25.34%	―
Sector *	64 Neutral	£1.74B	10.45	6.12%	255.82%	0.55%	-33.64%
TDUP	62 Neutral	$990.91M	―	-69.51%	―	-10.55%	9.27%
ARKO	61 Neutral	$525.33M	193.70	2.45%	2.62%	-9.67%	-89.84%
BNED	50 Neutral	$317.72M	―	-36.88%	―	1.38%	63.65%

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.

The most recent analyst rating on (LQDT) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Liquidity Services stock, see the LQDT Stock Forecast page.