Liquidity Stock Story

LQDT -  USA Stock  

USD 14.00  0.45  3.32%

Liquidity Services Tangible Asset Value is comparatively stable at the moment as compared to the past year. Liquidity Services reported Tangible Asset Value of 118.83 Million in 2020. Working Capital is likely to gain to about 18.7 M in 2021, whereas Invested Capital is likely to drop (6.5 M) in 2021. Liquidity Services is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 9th of December 2021. While some of us are excited about consumer cyclical space, let's try to review Liquidity Services in greater detail to make a better evaluation of its fundamental indicators. We will look into reasons why it is still very possible for the company to generate above-average returns. This firm actively responds to the market. We can now break down Liquidity as a potential investment option for your portfolios.
Published over three months ago
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Should you exit your stake in Liquidity Services (NASDAQ:LQDT)?
Our advice module complements current analysts and expert consensus on Liquidity Services. It analyzes the company potential to grow using all fundamental, technical, and market related data available at the time.
The firm dividends can provide a clue to the current value of the stock. The entity is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
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.

What is Liquidity Asset Breakdown?

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. 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 Gross Profit in 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. Institutional investor usually refers to an organization that invests money in Liquidity Services on behalf of clients or other money managers. Buying and selling of large positions of Liquidity Services stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Liquidity Services stock. Let's take a look at how the ownership of Liquidity is distributed among investors.

Ownership Allocation

Liquidity Services maintains a total of thirty-three million five hundred fourty thousand 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. Please note that no matter how much assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.


Insiders
24.36%
Institutions
71.09%
Retail Investors4.55
Insiders24.36
Institutions71.09
 2018 2019 2020 2021 (projected)
Receivables6.7 M5.32 M6.12 M9.41 M
Inventories5.84 M5.61 M6.45 M6.62 M

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 93.46 percent. This implies that the company is making $0.93 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 Assets
107.2 M
Assets Non Current
105.1 M
Goodwill
76.5 M
Current Assets107.23 Million36.84
Assets Non Current105.11 Million36.11
Goodwill76.46 Million26.27
Tax Assets2.27 Million0.78

Liquidity Services has a fair chance to close above $22 mark in January

Liquidity Services newest mean deviation boosts over 2.38. Liquidity Services exhibits very low volatility with skewness of -0.12 and kurtosis of -0.2. However, we advise investors to further study Liquidity Services technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Liquidity Services' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Liquidity Services' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Liquidity Services Implied Volatility

Liquidity Services' implied volatility exposes the market's sentiment of Liquidity Services stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Liquidity Services' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Liquidity Services stock will not fluctuate a lot when Liquidity Services' options are near their expiration.

Our Final Perspective on Liquidity Services

Whereas other companies in the internet retail industry are either recovering or due for a correction, Liquidity Services may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 8th of December 2021, we believe that at this point, Liquidity Services is not too volatile with very low odds of distress within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our primary 90 days 'Buy-vs-Sell' recommendation on the firm is Strong Hold.

Editorial Staff

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 Vlad Skutelnik do not own shares of Liquidity Services. Please refer to our Terms of Use for any information regarding our disclosure principles.

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