May. 6 at 3:15 PM
$LQDT this is going 50+ imo. FY27 consensus estimates for
$1.50 EPS way too low imo. Something is going on under the hood -- either LQDT is starting to increase take-rates slightly (untapped pricing power) or somehow they are finding lots of cost efficiencies.
FY 2027 = 2B GMV at 13% direct profit =
$260 million + ~
$20 million direct profits from Machinio (non GMV biz) =
$280 million gross profits less
$180 million cash operating costs =
$100 million EBITDA * 80% (back out taxes) =
$80 million adj earnings divided by 31 million shares
=
$2.50 FY2027 EPS vs
$1.50 consensus
multiply by whatever forward EPS multiple you think is appropriate
20x =
$50
25x =
$62.50
30x =
$75
supported by growth in GMV, leveraged EPS growth, accelerating buyer/seller additions to the platform , new biz line Retail Rush.
We will see
LQDT chart looks ready to go parabolic
