LOVESAC CO/THE (LOVE) Stock Fundamental Analysis
NASDAQ:LOVE - Nasdaq - US54738L1098 - Common Stock - Currency: USD
LOVE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. LOVE has an average financial health and profitability rating. LOVE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LOVE was profitable.
In the past year LOVE had a positive cash flow from operations.
Each year in the past 5 years LOVE has been profitable.
LOVE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of LOVE (2.17%) is comparable to the rest of the industry.
LOVE has a Return On Equity (5.34%) which is in line with its industry peers.
LOVE has a Return On Invested Capital of 2.63%. This is in the lower half of the industry: LOVE underperforms 64.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LOVE is below the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 5.34% | ||
| ROIC | 2.63% |
ROA(3y)4.54%
ROA(5y)7.01%
ROE(3y)10.01%
ROE(5y)14.75%
ROIC(3y)5.56%
ROIC(5y)7.56%
1.3 Margins
LOVE has a Profit Margin (1.70%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LOVE has declined.
With a Operating Margin value of 2.01%, LOVE is not doing good in the industry: 64.06% of the companies in the same industry are doing better.
LOVE's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 58.45%, LOVE belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
In the last couple of years the Gross Margin of LOVE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.01% | ||
| PM (TTM) | 1.7% | ||
| GM | 58.45% |
OM growth 3Y-37.34%
OM growth 5YN/A
PM growth 3Y-43.74%
PM growth 5YN/A
GM growth 3Y2.19%
GM growth 5Y3.17%
2. Health
2.1 Basic Checks
LOVE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LOVE has less shares outstanding
The number of shares outstanding for LOVE has been increased compared to 5 years ago.
LOVE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
LOVE has an Altman-Z score of 2.22. This is not the best score and indicates that LOVE is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.22, LOVE perfoms like the industry average, outperforming 42.19% of the companies in the same industry.
LOVE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.29
WACC9.05%
2.3 Liquidity
LOVE has a Current Ratio of 1.59. This is a normal value and indicates that LOVE is financially healthy and should not expect problems in meeting its short term obligations.
LOVE's Current ratio of 1.59 is on the low side compared to the rest of the industry. LOVE is outperformed by 71.88% of its industry peers.
LOVE has a Quick Ratio of 1.59. This is a bad value and indicates that LOVE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.79, LOVE is in line with its industry, outperforming 42.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for LOVE have decreased strongly by -57.14% in the last year.
The earnings per share for LOVE have been decreasing by -40.79% on average. This is quite bad
The Revenue has decreased by -2.80% in the past year.
The Revenue has been growing by 23.87% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-57.14%
EPS 3Y-40.79%
EPS 5YN/A
EPS Q2Q%13.9%
Revenue 1Y (TTM)-2.8%
Revenue growth 3Y10.96%
Revenue growth 5Y23.87%
Sales Q2Q%-3.6%
3.2 Future
The Earnings Per Share is expected to grow by 37.49% on average over the next years. This is a very strong growth
LOVE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.69% yearly.
EPS Next Y102.3%
EPS Next 2Y56.68%
EPS Next 3Y75.32%
EPS Next 5Y37.49%
Revenue Next Year4.7%
Revenue Next 2Y6.16%
Revenue Next 3Y9.43%
Revenue Next 5Y8.69%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.03 indicates a quite expensive valuation of LOVE.
Based on the Price/Earnings ratio, LOVE is valued a bit more expensive than 68.75% of the companies in the same industry.
LOVE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 13.86, which indicates a correct valuation of LOVE.
Based on the Price/Forward Earnings ratio, LOVE is valued a bit more expensive than 62.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.39. LOVE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.03 | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LOVE indicates a somewhat cheap valuation: LOVE is cheaper than 60.94% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LOVE indicates a somewhat cheap valuation: LOVE is cheaper than 65.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.31 | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LOVE's earnings are expected to grow with 75.32% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y56.68%
EPS Next 3Y75.32%
5. Dividend
5.1 Amount
No dividends for LOVE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.82
-3.68 (-17.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.74%
Inst Owner Change-5.27%
Ins Owners7.77%
Ins Owner Change0.29%
Market Cap249.78M
Analysts83.33
Price Target31.62 (87.99%)
Short Float %21.69%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.7%
Min EPS beat(2)9.93%
Max EPS beat(2)11.47%
EPS beat(4)4
Avg EPS beat(4)12.91%
Min EPS beat(4)9.93%
Max EPS beat(4)15.24%
EPS beat(8)7
Avg EPS beat(8)25.5%
EPS beat(12)10
Avg EPS beat(12)32.9%
EPS beat(16)14
Avg EPS beat(16)103.19%
Revenue beat(2)1
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-5.35%
Max Revenue beat(2)1.2%
Revenue beat(4)2
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-5.35%
Max Revenue beat(4)1.53%
Revenue beat(8)4
Avg Revenue beat(8)-1.14%
Revenue beat(12)7
Avg Revenue beat(12)1.92%
Revenue beat(16)11
Avg Revenue beat(16)3.38%
PT rev (1m)-2.11%
PT rev (3m)-16.22%
EPS NQ rev (1m)-7.79%
EPS NQ rev (3m)-8.07%
EPS NY rev (1m)0%
EPS NY rev (3m)7.86%
Revenue NQ rev (1m)-1.56%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)-2.4%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.03 | ||
| Fwd PE | 13.86 | ||
| P/S | 0.37 | ||
| P/FCF | 14.31 | ||
| P/OCF | 6.41 | ||
| P/B | 1.15 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 7.78 |
EPS(TTM)0.6
EY3.57%
EPS(NY)1.21
Fwd EY7.22%
FCF(TTM)1.18
FCFY6.99%
OCF(TTM)2.62
OCFY15.6%
SpS45.83
BVpS14.57
TBVpS14.45
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 5.34% | ||
| ROCE | 3.62% | ||
| ROIC | 2.63% | ||
| ROICexc | 3.38% | ||
| ROICexgc | 3.4% | ||
| OM | 2.01% | ||
| PM (TTM) | 1.7% | ||
| GM | 58.45% | ||
| FCFM | 2.57% |
ROA(3y)4.54%
ROA(5y)7.01%
ROE(3y)10.01%
ROE(5y)14.75%
ROIC(3y)5.56%
ROIC(5y)7.56%
ROICexc(3y)6.82%
ROICexc(5y)13.93%
ROICexgc(3y)6.86%
ROICexgc(5y)14.28%
ROCE(3y)7.65%
ROCE(5y)10.41%
ROICexcg growth 3Y-43.02%
ROICexcg growth 5YN/A
ROICexc growth 3Y-42.96%
ROICexc growth 5YN/A
OM growth 3Y-37.34%
OM growth 5YN/A
PM growth 3Y-43.74%
PM growth 5YN/A
GM growth 3Y2.19%
GM growth 5Y3.17%
F-Score6
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 146.28% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | 121.86 | ||
| Cash Conversion | 137.45% | ||
| Profit Quality | 151.09% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.22 |
F-Score6
WACC9.05%
ROIC/WACC0.29
Cap/Depr(3y)204.59%
Cap/Depr(5y)188.61%
Cap/Sales(3y)3.75%
Cap/Sales(5y)3.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-57.14%
EPS 3Y-40.79%
EPS 5YN/A
EPS Q2Q%13.9%
EPS Next Y102.3%
EPS Next 2Y56.68%
EPS Next 3Y75.32%
EPS Next 5Y37.49%
Revenue 1Y (TTM)-2.8%
Revenue growth 3Y10.96%
Revenue growth 5Y23.87%
Sales Q2Q%-3.6%
Revenue Next Year4.7%
Revenue Next 2Y6.16%
Revenue Next 3Y9.43%
Revenue Next 5Y8.69%
EBIT growth 1Y-54.62%
EBIT growth 3Y-30.47%
EBIT growth 5YN/A
EBIT Next Year504.7%
EBIT Next 3Y108.91%
EBIT Next 5Y62.56%
FCF growth 1Y-63.03%
FCF growth 3Y-0.13%
FCF growth 5YN/A
OCF growth 1Y-49.01%
OCF growth 3Y6.08%
OCF growth 5YN/A