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Liquidity ServicesLQDT +2.33%70 Net Margin % is 8.05% as of Jun. 2026, which is 338% above its 10-year median of 1.84. GuruFocus rates LQDT with a GF Score™ of 70/100 and a GF Value™ of $31.16 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,131 Retail - Cyclical companies, Liquidity Services ranks better than 75.6% on this metric.
Liquidity Services (NAS:LQDT) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Liquidity Services Net Margin % Related Terms
Liquidity Services Net Margin % Historical Data
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The historical data trend for Liquidity Services's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Internet Retail subindustry, Liquidity Services's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Liquidity Services Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Liquidity Services's Net Margin % distribution charts can be found below:
* The bar in red indicates where Liquidity Services's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Liquidity Services (LQDT) has a Net Margin % of 8.05% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Liquidity Services and its competitors. This is 338% above median its historical median of 1.84. According to the industry distribution chart, Liquidity Services ranks #276 out of 1131 companies in the Retail - Cyclical industry, placing it in the top 24.4%.
Is Liquidity Services' Net Margin % too high?
Liquidity Services' current Net Margin % of 8.05% is 338% above median its 10-year median of 1.84. The Retail - Cyclical industry median Net Margin % is 2.32. Liquidity Services' value of 8.05% is 247% above this industry median. Based on the distribution chart, Liquidity Services ranks #276 out of 1131 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Liquidity Services has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Liquidity Services' Net Margin % compare to TDUP and JMIA?
According to the Retail - Cyclical industry distribution chart, Liquidity Services ranks #276 out of 1131 companies for Net Margin %. This places Liquidity Services in the top 24% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.32. Liquidity Services' value of 8.05% is 247% above this benchmark. While the company's 10-year median is 1.84 vs. the industry median of 2.32, Liquidity Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.32, based on 1,131 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Liquidity Services's current Net Margin % of 8.05% is 247% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Liquidity Services and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Liquidity Services's current Net Margin % is 8.05%, which is 338% above median its own 10-year median of 1.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Liquidity Services stock overvalued right now?
Based on GuruFocus' analysis, Liquidity Services (LQDT) is currently considered Significantly Overvalued. The stock's GF Value™ is $31.16, compared to a current price of $41.78 — trading 34.1% above its estimated fair value. The current Net Margin % is 8.05%, which is 338% above median its 10-year median of 1.84 and 247% above the Retail - Cyclical industry median of 2.32. Liquidity Services' overall GF Score™ is 70/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Liquidity Services (LQDT), the current Net Margin % is 8.05% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Liquidity Services (LQDT) Overvalued in 2026?
Based on GuruFocus' analysis, Liquidity Services stock appears to be overvalued.
The current stock price of $41.78 is trading 34.1% above its estimated GF Value™ of $31.16.
GuruFocus considers Liquidity Services to be Significantly Overvalued.
Key valuation signals for LQDT:
Net Margin %: 8.05% (338% above median its 10-year median of 1.84)
GF Value™: $31.16 vs. price of $41.78 (34.1% above fair value)
Industry Position: 247% above the Retail - Cyclical median (#276 of 1131)
No single metric tells the full story. See the LQDT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Liquidity Services Inc is an online auction marketplace. It manages and sells inventory and equipment for business and government clients by operating a network of e-commerce marketplaces that enable buyers and sellers to transact in an efficient, automated environment offering across different product categories. The company has four reportable segments: GovDeals, Retail Supply Chain Group (RSCG), and Machinio & Software Solutions. It generates majority of its revenue from Retail Supply Chain Group (RSCG) segment which consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. Geographically, a substantial portion the company's revenue is generated from its business in United States.
70GF Score
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