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Liquidity Services

LQDT
65
Specialty Retail · Consumer Cyclical
Price
$39.52
-1.50 (-3.66%)
Market Cap
$1.23B
Exchange
NASDAQ
Winston Score
65
Winston is curious
A decent business — some strong pillars, some weaker.

Share count falling — buybacks

7.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 35.0M (2021) → 32.4M (2025)

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 loc

Winston Score History

Politician Trades

1 trades / 12mo

0 Congressional buys and 1 sell on LQDT in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+4.3% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

24.6%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$195M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Liquidity Services is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
44.1%
Healthy — 44.1% gross margin
Operating Margin
8.0%
Modest — 8.0% operating margin
ROCE
4.1%
Weak — 4.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+15.0%
Fast-growing sales (15.0% YoY)
EPS YoY
+15.7%
Earnings growing fast (15.7% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
364%
Turns 364% of profit into real cash
FCF Margin
21.1%
Converts sales into free cash efficiently (21.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.07
Conservative — low debt load (0.07)
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
41.2x
Pricey — P/E 41.2

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+15.7
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (41.2 → 25.5)

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Dividends

Not applicable for this business.
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