Liquidity Services Inc. Common Stock (LQDT)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I want a margin of safety, and at $43.96 on 2026-10-13, Liquidity Services does not offer one. FairStock calculates a P/E of 43.10, P/B of 5.84, EV/EBITDA of 21.43, PEG of 6.45, and a Graham Number of $13.15; its margin of safety is -234.30%. The market cap is $1.4B. The business itself is understandable: online auction marketplaces, including GovDeals, Bid4Assets, and Sierra, that help government and commercial sellers move surplus assets. That can be a decent niche with switching costs and relationships, but ROCE of 6.92% and ROE of 14.97%, both FairStock calculations, suggest the moat is not exceptional. The balance sheet is a real strength: D/E of 0.06, Piotroski F-Score of 8/9, Altman Z-Score of 5.40. FCF is $90.0M TTM, a 6.5% FCF yield. Growth, however, is unimpressive. FairStock classifies it as a SLOW GROWER — Shrinking, with profit -13.8% a year over four years and revenue 16.6%. Filed results show improvement in fiscal Q3 2026, the quarter ended 2026-06-30: revenue $129.6M, net income $10.4M, diluted EPS $0.32, versus fiscal Q3 2025 revenue $119.9M, net income $7.4M, diluted EPS $0.23. But annual profit has been uneven: FY2023 net income $21.0M, FY2024 $20.0M, FY2025 $28.1M. This is a fair, cash-generative business with low debt, but the price already assumes much better growth. I would rather wait for evidence than pay up for hope.

In plain English: Liquidity Services runs online auctions and marketplaces that help governments and businesses sell surplus items. The company makes money and carries little debt, but its growth has been slow and uneven. At the recent stock price, the shares look expensive compared with the company's reported profit, assets, and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer