Liveperson Inc (NASDAQ: LPSN)

Sector: Technology Industry: Software - Application CIK: 0001102993
Market Cap 18.11 Mn
P/B -0.82
P/E -0.14
P/S 0.07
ROIC (Qtr) -32.59
Div Yield % 0.00
Rev 1y % (Qtr) -18.98
Total Debt (Qtr) 382.41 Mn
Debt/Equity (Qtr) -17.34

About

Price action

Investment thesis

Bull case

  • Robust tangible asset base of 269.42M provides 12.53x coverage of working capital 21.50M, indicating strong operational backing.
  • Cash reserves of 106.66M provide robust 0.87x coverage of current liabilities 122.22M, indicating strong short-term solvency.
  • Retained earnings of (1.01B) represent substantial 45.91x of equity (22.05M), indicating strong internal capital generation.
  • Cash position of 106.66M represents healthy 4.96x of working capital 21.50M, demonstrating strong operational liquidity.
  • Cash reserves of 106.66M provide comfortable 28.20x coverage of tax obligations 3.78M, showing strong fiscal management.

Bear case

  • Investment activities of (15.93M) provide weak support for R&D spending of 65.28M, which is -0.24x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (23.90M) provides insufficient coverage of deferred revenue obligations of 56M, which is -0.43x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (23.90M) shows concerning coverage of stock compensation expenses of 14.76M, with a -1.62 ratio indicating potential earnings quality issues.
  • Free cash flow of (37.32M) provides weak coverage of capital expenditures of 13.42M, with a -2.78 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (97.93M) show weak coverage of depreciation charges of 24.66M, with a -3.97 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 234.56 Bn 28.15 5.46 10.73 Bn
2 CRM Salesforce, Inc. 204.28 Bn 32.96 5.39 11.14 Bn
3 SHOP Shopify Inc. 169.36 Bn 95.09 15.83 1.12 Bn
4 UBER Uber Technologies, Inc 167.13 Bn 10.04 3.37 12.19 Bn
5 INTU Intuit Inc. 140.92 Bn 175.06 33.55 6.78 Bn
6 ADBE Adobe Inc. 124.98 Bn 17.53 5.26 6.65 Bn
7 NOW ServiceNow, Inc. 121.03 Bn 69.24 9.11 2.40 Bn
8 ADP Automatic Data Processing Inc 100.13 Bn 23.64 4.72 4.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.77 2.50
EV to Cash from Ops. EV/CFO -16.49 12.27
EV to Debt EV to Debt 1.03 50.31
EV to EBIT EV/EBIT -4.02 10.96
EV to EBITDA EV/EBITDA -3.45 16.84
EV to Free Cash Flow [EV/FCF] EV/FCF -10.56 14.08
EV to Market Cap EV to Market Cap 21.76 -118.20
EV to Revenue EV/Rev 1.53 4.45
Price to Book Value [P/B] P/B -0.82 4.27
Price to Earnings [P/E] P/E -0.14 -133.65
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.97
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.54
Interest Coverage Int. cover (Qtr) -2.86 -51.80
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 51.59 -210.77
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -24.94 9,906.83
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.62
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -119.28 -265.85
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -54.39 55.76
EBIT Growth (1y) % EBIT 1y % (Qtr) -135.18 -227.83
EBT Growth (1y) % EBT 1y % (Qtr) -128.05 -88.00
EPS Growth (1y) % EPS 1y % (Qtr) -101.69 121.91
FCF Growth (1y) % FCF 1y % (Qtr) -6.01 -40.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -20.53 92.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.50 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.87 3.77
Current Ratio Curr Ratio (Qtr) 1.18 8.19
Debt to Equity Ratio Debt/Equity (Qtr) -17.34 0.16
Interest Cover Ratio Int Coverage (Qtr) -2.86 -51.80
Times Interest Earned Times Interest Earned (Qtr) -2.86 -51.80
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -28.40 -105.77
EBIT Margin % EBIT Margin % (Qtr) -38.01 -131.65
EBT Margin % EBT Margin % (Qtr) -51.32 -122.72
Gross Margin % Gross Margin % (Qtr) 72.20 58.14
Net Profit Margin % Net Margin % (Qtr) -51.70 -127.70