The company secures a Beta (Market Risk) of 0.4461, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Liquidity's beta means in this case. As returns on the market increase, Liquidity Services returns are expected to increase less than the market. However, during the bear market, the loss on holding Liquidity Services will be expected to be smaller as well. Although it is extremely important to respect
Liquidity Services price patterns, it is better to be realistic regarding the information on equity historical
price patterns. The philosophy towards estimating
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
Liquidity Services technical indicators, you can presently evaluate if the expected return of 0.0285% will be sustainable into the future.
Liquidity Services right now secures a risk of 3.46%. Please verify Liquidity Services
variance,
value at risk, as well as the
relationship between the Value At Risk and
skewness to decide if Liquidity Services will be following its current price movements.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Liquidity Services income statement, its balance sheet, and the statement of cash flows. Potential Liquidity Services investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Liquidity Services investors may use each financial statement separately, they are all related. The changes in Liquidity Services's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Liquidity Services's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Liquidity Services
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Liquidity Services performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Liquidity Services shares is the value that is considered the true value of the share. If
the intrinsic value of Liquidity is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Liquidity Services. Please read more on our
fundamental analysis page.
How effective is Liquidity Services in utilizing its assets?
Liquidity Services reports assets on its Balance Sheet. It represents the amount of Liquidity resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Liquidity Services aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Internet & Direct Marketing Retail space. To get a better handle on how balance sheet or income statements item affect Liquidity volatility, please check the breakdown of all its
fundamentals.
Are Liquidity Services Earnings Expected to grow?
The
future earnings power of Liquidity Services involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Liquidity Services factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Liquidity Services
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Liquidity
expected earnings.
Liquidity Services Gross Profit
Liquidity Services Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Liquidity Services previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Liquidity Services Gross Profit growth over the last 10 years. Please check Liquidity Services'
gross profit and other
fundamental indicators for more details.
Is Liquidity Services valued wisely by the market?
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Liquidity Services is not uncomon. Many companies such as Liquidity Services have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Liquidity is distributed among investors.
Ownership Allocation
Liquidity Services holds a total of 34.02 Million outstanding shares. The majority of Liquidity Services
outstanding shares are owned by
institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Liquidity Services to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Liquidity Services. Please pay attention to any change in the institutional holdings of Liquidity Services as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
| Retail Investors8.28% | Insiders19.88% | Institutions71.84% |
| Retail Investors | 8.28 |
| Insiders | 19.88 |
| Institutions | 71.84 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Liquidity Services has an asset utilization ratio of 83.81 percent. This implies that the company is making $0.84 for each dollar of assets. An increasing asset utilization means that Liquidity Services is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets103.4 M | Assets Non Current97.8 M | Goodwill72.8 M | |
| Current Assets | 103.39 Million | 37.31 |
| Assets Non Current | 97.77 Million | 35.28 |
| Goodwill | 72.82 Million | 26.28 |
| Tax Assets | 3.14 Million | 1.13 |
Our perspective of the newest Liquidity Services reset
Newest mean deviation is at 2.61. Liquidity Services shows above-average downside volatility for the selected time horizon. We advise investors to inspect Liquidity Services further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Liquidity Services future alpha.
Our Conclusion on Liquidity Services
When is the right time to buy or sell Liquidity Services? Buying stocks such as Liquidity Services isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. The bottom line, as of the 20th of July 2020, our analysis shows that Liquidity Services slowly supersedes the market. The firm is
undervalued and projects
low probability of financial unrest for the next 2 years. However, our actual 30 days buy-or-sell advice on the firm is
Strong Sell.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Liquidity Services. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com