5 Cash Flow Positive Small Caps Selling Under 1x Revenue: LQDT, CVL, ESND, HY, CFW

Cash flow is so important to any business that if a company doesn’t have enough money to sustain its operations it must raise funds through equity or debt in order to survive. Publicly-traded companies selling below 1.0x revenues usually signify either low profitability margins (therefore flowing little income to the bottom line), or a sign of poor future growth (expecting to not generate much revenue in the future). This could include the companies on our list today.
Liquidity Services Inc. (NASDAQ: LQDT) - $7.50
IT Services & Consulting
Liquidity Services, Inc., is an auction marketplace for surplus and salvage assets. The Company enables buyers and sellers to transact in an automated online auction environment offering over 500 product categories. Its marketplaces provide professional buyers access to a global, organized supply of surplus and salvage assets presented with digital images and other relevant product information.

• Market Cap: $291,710,762
• EV/Revenue: 0.3x
• Free Cash Flow (2014): $4,675,450
• Total Debt (LFQ): $0

 

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