LPSN  Liveperson Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

762.76M

Vuru Grade

32.22/100

Current Price

$12.95
+0.10 (+0.78%)

Growth Price

$3.51
Overvalued by 72.88%

Stability Price

$4.28
Overvalued by 66.95%

Company Metrics

  • P/E 965.83
  • P/S 3.51
  • P/B 5.6
  • EPS -0.51
  • Cash ROIC 8.60%
  • Cash Ratio 0.68
  • Dividend 0 / 0%
  • Avg. Vol. 430,359.00
  • Shares 58.90M
  • Market Cap. 762.76M

Company Description

LivePerson, Inc. provides online engagement solutions that facilitate real-time assistance and advice. It connects businesses and independent service providers with consumers seeking help on its hosted software platform. The company's hosted platform supports and manages real time online interactions, such as chat, voice/click-to-call, email, and self service/knowledgebase from a single agent desk... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

LivePerson and Hawaiian Airlines launch innovative mobile messaging for ...
PR Newswire (press release) - Aug 10, 2017
NEW YORK, Aug. 10, 2017 /PRNewswire/ -- LivePerson, Inc. a leading provider of cloud mobile and online business messaging solutions, is powering a new mobile messaging option at Hawaiian Airlines, giving travelers a simpler and faster way to connect ...
LivePerson, Inc. (NASDAQ:LPSN) Closed Well Above Its 50 Day Average
Modern Readers - Aug 18, 2017
LivePerson, Inc. shares had a trading volume of 417K by the end of trading on Friday. Volume was up 20.41% over the stocks average daily volume.
LivePerson, Inc. (LPSN): What are the Technicals Saying? - Economic News
LivePerson, Inc. (NASDAQ:LPSN) Stock Closed Well Above Its 50 Day Moving Average - Highlight Press
Pounding the Pavement on Shares of LivePerson, Inc. (NasdaqGS:LPSN)
Stock Talker - 4 hours ago
The 12 month volatility of LivePerson, Inc. (NasdaqGS:LPSN) is 41.194100. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.
Tale of the Tape: LivePerson, Inc. (NASDAQ:LPSN) Moves 1.17%
Concord Register - 10 hours ago
LivePerson, Inc. (NASDAQ:LPSN) shares saw the needle move 1.17% on the week. The stock closed the most recent session at $12.95 after seeing 325782 shares trade hands.
LivePerson, Inc. (LPSN) Receives Consensus Rating of “Buy” from Analysts - Week Herald
Louisiana State Employees Retirement System Has $241000 Stake in LivePerson ... - StockNewsTimes
LivePerson, Inc. (NASDAQ:LPSN) Sees Unusual Trading Volume in Its Shares
Modern Readers - Aug 7, 2017
285K shares changed hands in the last trading session. Shares saw a steep decrease in trading volume of 17.76% under the normal average daily volume.
KCG Holdings Inc. Purchases New Stake in LivePerson, Inc. (LPSN) - TheOlympiaReport
Price Alert: LivePerson Inc (NASDAQ:LPSN) Stock Nears Resistance -- Technicals ...
CML News - Aug 16, 2017
Price Alert: LivePerson Inc (NASDAQ:LPSN) has now crossed into technical strength -- watch the technical oscillators for momentum gaps.
LivePerson, Inc. (NASDAQ:LPSN) Given “Buy” Rating at Northland Securities
BNB Daily (blog) - Aug 16, 2017
LivePerson, Inc. logo Northland Securities reiterated their buy rating on shares of LivePerson, Inc. (NASDAQ:LPSN) in a research note published on Tuesday, July 25th.
Street Analysts View On LivePerson, Inc. (LPSN), AtriCure, Inc. (ATRC) - Post Analyst
LivePerson's (LPSN) “Hold” Rating Reiterated at Oppenheimer Holdings, Inc. - The Cerbat Gem
Why Shares of LivePerson Jumped Today
Motley Fool - Jul 27, 2017
Shares of cloud-based messaging platform provider LivePerson (NASDAQ:LPSN) surged on Thursday following release of the the company's second-quarter report.
LivePerson Inc. (LPSN) Soars 18.42% on July 27 - Equities.com
LivePerson, Inc. (NASDAQ:LPSN) Beats Guidance and Analysts - StockNewsUnion
Bottomline Technologies (de), Inc. (EPAY) and LivePerson, Inc. (LPSN) Go Head ...
StockNewsGazette - Aug 14, 2017
Bottomline Technologies (de), Inc. (NASDAQ:EPAY) and LivePerson, Inc. (NASDAQ:LPSN) are the two most active stocks in the Business Software & Services industry based on today's trading volumes.
LivePerson, Inc. (NASDAQ:LPSN) Stock Closed 10.2% Above Its 50 Day Moving Average
Modern Readers - Aug 9, 2017
LivePerson, Inc. shares had a trading volume of 298K by the end of trading on Wednesday. Volume was down 13.90% under the stocks average daily volume.
Oppenheimer Holdings, Inc. Reiterates “Hold” Rating for LivePerson, Inc. (LPSN) - Sports Perspectives
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for LPSN to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate LPSN's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$12.95 Current Price

$3.51 Growth Price (DCF)

Overvalued by 72.88%


Growth Rate Assumed by Market: 49.74%


Future Free Cash Flow Growth Rate: -3.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$4.28 Stability Price (EPV)

Overvalued by 66.95%


Discount Rate: 15.0%

$0.19 NCA Price

Overvalued by 98.56%

$9.43 Book Price

Overvalued by 27.21%


Poor Cash Return on Invested Capital over the past 5 years

LPSN has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

LPSN has only created $8.60 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 5.99M 8.91M 1.63M 8.85M 12.22M
divided by
Invested Capital 69.68M 68.88M 131.70M 122.13M 94.07M
Cash ROIC 8.60% 12.94% 1.24% 7.25% 12.99%

Very Poor Return on Equity over the past 5 years

LPSN has shown an inability to deliver results for shareholders. This could be due to poor management, LPSN operating in a highly competitive industry, or having a weak business in general.

LPSN has generated a $7.44 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 6.36M -3.50M -7.35M -26.44M -25.87M
divided by
Stockholders' Equity 170.24M 159.05M 180.34M 165.31M 138.48M
Return on Equity 3.73% -2.20% -4.07% -16.00% -18.68%

Excellent Business Performance over the past 10 years

LPSN has been able to maintain profitability in good times and bad. This could mean LPSN has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

LPSN has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 7.28M 1.15M 15.58M 7.55M 17.81M 5.99M 8.91M 1.63M 8.85M 12.22M

Good Balance Sheet

LPSN's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 26.22M 25.50M 45.57M 61.34M 93.28M 103.34M 91.91M 49.37M 48.80M 50.89M
Current Assets 34.09M 36.70M 60.96M 85.70M 122.01M 136.15M 133.18M 93.70M 94.38M 92.15M
Total Assets 102.49M 81.95M 104.28M 131.14M 166.05M 208.58M 205.09M 239.82M 226.19M 219.64M
Current Liabilities 16.45M 16.98M 20.96M 24.10M 25.66M 35.56M 44.31M 58.75M 55.26M 74.68M
Total Liabilities 17.78M 18.37M 23.14M 26.50M 28.35M 38.33M 46.04M 59.48M 60.89M 81.16M
Stockholder' Equity 84.71M 63.58M 81.14M 104.64M 137.70M 170.24M 159.05M 180.34M 165.31M 138.48M
Current Ratio 2.07 2.16 2.91 3.56 4.76 3.83 3.01 1.59 1.71 1.23
TL-to-TA 0.17 0.22 0.22 0.20 0.17 0.18 0.22 0.25 0.27 0.37

Low or No Reinvestment of Profits over the past 10 years

LPSN has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to LPSN operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -93.36M -117.20M -109.43M -100.17M -88.14M -81.78M -85.28M -92.63M -119.07M -144.94M
Retained Earnings Growth - -25.53% 6.62% 8.46% 12.02% 7.21% -4.28% -8.62% -28.55% -21.73%

Loss Making Entity over the past 10 years

LPSN has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$1.85 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 5.82M -23.84M 7.76M 9.26M 12.04M 6.36M -3.50M -7.35M -26.44M -25.87M
divided by
Revenue 52.23M 74.66M 87.49M 109.86M 133.09M 157.41M 177.81M 209.93M 239.01M 222.78M
Net Profit Margin 11.15% -31.93% 8.87% 8.43% 9.05% 4.04% -1.97% -3.50% -11.06% -11.61%

Strong Pricing Power over the past 10 years

LPSN has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$75.12 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 38.69M 54.35M 66.41M 80.22M 112.87M 121.83M 135.25M 157.23M 168.70M 159.62M
divided by
Revenue 52.23M 74.66M 87.49M 109.86M 133.09M 157.41M 177.81M 209.93M 239.01M 222.78M
Gross Margin 74.09% 72.80% 75.91% 73.02% 84.81% 77.40% 76.07% 74.90% 70.58% 71.65%

High Capital Intensity over the past 10 years

LPSN spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

118.55% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 1.71M 6.83M 5.44M 8.00M 7.27M 22.02M 8.04M 14.04M 12.98M 12.34M
divided by
Net Income 5.82M -23.84M 7.76M 9.26M 12.04M 6.36M -3.50M -7.35M -26.44M -25.87M
Capital Expenditure Ratio 29.36% -28.67% 70.10% 86.42% 60.38% 346.48% -229.89% -191.07% -49.08% -47.71%

No Dividend History over the past 10 years

LPSN has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 46.81M 47.43M 49.01M 52.91M 55.01M 57.13M 54.73M 54.48M 56.45M 56.06M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 5.28 1.79 7.02 11.23 12.55 12.89 14.58 13.61 7.00 7.55
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

LPSN has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 46.81M 47.43M 49.01M 52.91M 55.01M 57.13M 54.73M 54.48M 56.45M 56.06M
Stock Bought Back - -1.29% -3.22% -7.37% -3.82% -3.71% 4.40% 0.45% -3.50% 0.69%
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