LIVE

We rate LIVE VENTURES Inc (LIVE) as a Buy with a composite score of 66.2/100 at a current price of $16.65. The stock scores above average across the majority of our six quantitative factors and ranks #231 out of 7,333 stocks in our universe, reflecting a favorable risk-reward profile.

The rating is primarily driven by strength in value (93th percentile) and momentum (78th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (37th percentile) and investment (53th percentile) tempers our overall conviction. We assign a No Moat rating (32/100), High uncertainty, and Poor capital allocation.

Key items to watch: whether strong momentum is fundamentally supported by revenue trends; balance sheet deleveraging progress. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

LIVE VENTURES Inc holds a top-quartile position (#11 of 50) within the Retail Trade sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 66.2/100 places it at rank #231 in our full 7,333-stock universe. At $56M in market capitalization, LIVE VENTURES Inc is a small-cap player in the Retail Trade space, which limits certain scale advantages but may allow for more agile strategic execution.

Despite positive momentum (78th percentile), revenue contraction of -9% creates a divergence between price action and fundamental trajectory. This divergence suggests either that the market is looking through near-term weakness or that technical factors are temporarily inflating the stock. Investors should assess whether the revenue decline reflects cyclical weakness or structural challenges.

The margin cascade tells an important story: gross margins of 32% (-3.9pp vs sector) narrow to operating margins of 3% (-0.6pp vs sector) and net margins of 4.3%, yielding a gross-to-net conversion rate of 13%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $16.65, LIVE VENTURES Inc appears undervalued relative to its fundamentals. Our value factor score of 93/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.

The stock currently trades at a P/E of 2.9x (a 86% discount to the sector median of 21.4x), EV/EBITDA of 1.7x (discounted to peers), P/B of 0.6x, P/S of 0.1x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a High uncertainty rating to LIVE VENTURES Inc. Key risk factors include significant leverage (308% debt-to-equity), below-average price stability (37th percentile), low beta of 0.46 — while defensive, this may indicate limited upside participation in bull markets. The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: significant leverage (308% debt-to-equity); below-average price stability (37th percentile); low beta of 0.46 — while defensive, this may indicate limited upside participation in bull markets; the combination of leverage (308% D/E) and thin margins (4.3% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 37th percentile and quality factor at the 73th percentile provide a quantitative summary of the overall risk landscape.

We identify limited risk mitigants at this time, which contributes to our high uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.

We rate LIVE VENTURES Inc's capital allocation as Poor. Key concerns include elevated leverage (308% D/E). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — LIVE VENTURES Inc significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, LIVE VENTURES Inc receives a Buy rating with a composite score of 66.2/100 (rank #231 of 7,333). Our quantitative framework assigns a No Moat (32/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 67/100.

Our analysis supports a constructive view on LIVE VENTURES Inc. The combination of the current valuation, high uncertainty, and poor capital allocation creates a risk-reward profile that favors accumulation at current levels. We recommend investors consider adding this name to portfolios aligned with the stock's risk profile.