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ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Liquidity Services ROE % Related Terms
Liquidity Services ROE % Historical Data
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The historical data trend for Liquidity Services's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Liquidity Services's ROE % distribution charts can be found below:
* The bar in red indicates where Liquidity Services's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Liquidity Services (FRA:L1S) has a ROE % of 13.85% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Liquidity Services and its competitors. This is 233% above median its historical median of 4.16. According to the industry distribution chart, Liquidity Services ranks #308 out of 1100 companies in the Retail - Cyclical industry, placing it in the top 28%.
Is Liquidity Services' ROE % too high?
Liquidity Services' current ROE % of 13.85% is 233% above median its 10-year median of 4.16. The Retail - Cyclical industry median ROE % is 6.54. Liquidity Services' value of 13.85% is 111.9% above this industry median. Based on the distribution chart, Liquidity Services ranks #308 out of 1100 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Liquidity Services has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Liquidity Services' ROE % compare to TDUP and JMIA?
According to the Retail - Cyclical industry distribution chart, Liquidity Services ranks #308 out of 1100 companies for ROE %. This puts Liquidity Services in the upper half of its industry. The industry median ROE % is 6.54. Liquidity Services' value of 13.85% is 111.9% above this benchmark. While the company's 10-year median is 4.16 vs. the industry median of 6.54, 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 ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.54, based on 1,100 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Liquidity Services's current ROE % of 13.85% is 111.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Liquidity Services and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Liquidity Services's current ROE % is 13.85%, which is 233% above median its own 10-year median of 4.16. 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?
Liquidity Services (FRA:L1S) has a current ROE % of 13.85%. The stock's GF Value™ is €22.07, compared to a current price of €32.40 — trading 46.8% above its estimated fair value. The current ROE % is 13.85%, which is 233% above median its 10-year median of 4.16 and 111.9% above the Retail - Cyclical industry median of 6.54. Liquidity Services' overall GF Score™ is 66/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Liquidity Services (FRA:L1S), the current ROE % is 13.85% as of Mar. 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 (FRA:L1S) Overvalued in 2026?
Based on GuruFocus' analysis, Liquidity Services stock appears to be overvalued.
The current stock price of €32.40 is trading 46.8% above its estimated GF Value™ of €22.07.
Key valuation signals for FRA:L1S:
ROE %: 13.85% (233% above median its 10-year median of 4.16)
GF Value™: €22.07 vs. price of €32.40 (46.8% above fair value)
Industry Position: 111.9% above the Retail - Cyclical median (#308 of 1100)
No single metric tells the full story. See the FRA:L1S 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.
66GF Score
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