LOVESAC CO/THE (LOVE) Stock Fundamental Analysis
NASDAQ:LOVE - US54738L1098 - Common Stock
18.97 USD
+0.03 (+0.16%)
18.97 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to LOVE. LOVE was compared to 63 industry peers in the Household Durables industry. LOVE has only an average score on both its financial health and profitability. LOVE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
LOVE had positive earnings in the past year.
In the past year LOVE had a positive cash flow from operations.
In the past 5 years LOVE has always been profitable.
Of the past 5 years LOVE 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.83%, LOVE perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
With a Return On Equity value of 6.80%, LOVE perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
LOVE has a worse Return On Invested Capital (3.24%) than 63.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LOVE is below the industry average of 10.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 6.8% | ||
| ROIC | 3.24% |
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
With a Profit Margin value of 1.99%, LOVE perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Profit Margin of LOVE has declined.
The Operating Margin of LOVE (2.41%) is worse than 66.67% of its industry peers.
LOVE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 58.30%, LOVE belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
LOVE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.41% | ||
| PM (TTM) | 1.99% | ||
| GM | 58.3% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LOVE is destroying value.
Compared to 1 year ago, LOVE has less shares outstanding
LOVE has more shares outstanding than it did 5 years ago.
There is no outstanding debt for LOVE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.31 indicates that LOVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
LOVE's Altman-Z score of 2.31 is on the low side compared to the rest of the industry. LOVE is outperformed by 60.32% of its industry peers.
There is no outstanding debt for LOVE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.31 |
ROIC/WACC0.36
WACC8.94%
2.3 Liquidity
LOVE has a Current Ratio of 1.60. This is a normal value and indicates that LOVE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of LOVE (1.60) is worse than 71.43% of its industry peers.
LOVE has a Quick Ratio of 1.60. This is a bad value and indicates that LOVE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.50, LOVE is not doing good in the industry: 73.02% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
LOVE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.65%.
The earnings per share for LOVE have been decreasing by -40.79% on average. This is quite bad
LOVE shows a decrease in Revenue. In the last year, the revenue decreased by -0.77%.
Measured over the past years, LOVE shows a very strong growth in Revenue. The Revenue has been growing by 23.87% on average per year.
EPS 1Y (TTM)-17.65%
EPS 3Y-40.79%
EPS 5YN/A
EPS Q2Q%12.05%
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y10.96%
Revenue growth 5Y23.87%
Sales Q2Q%4.32%
3.2 Future
Based on estimates for the next years, LOVE will show a very strong growth in Earnings Per Share. The EPS will grow by 37.49% on average per year.
The Revenue is expected to grow by 8.66% on average over the next years. This is quite good.
EPS Next Y76.46%
EPS Next 2Y54.73%
EPS Next 3Y46.12%
EPS Next 5Y37.49%
Revenue Next Year4.84%
Revenue Next 2Y6.03%
Revenue Next 3Y8.64%
Revenue Next 5Y8.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.10, which means the current valuation is very expensive for LOVE.
Compared to the rest of the industry, the Price/Earnings ratio of LOVE indicates a slightly more expensive valuation: LOVE is more expensive than 66.67% of the companies listed in the same industry.
LOVE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.17.
Based on the Price/Forward Earnings ratio of 13.21, the valuation of LOVE can be described as correct.
LOVE's Price/Forward Earnings ratio is in line with the industry average.
LOVE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.1 | ||
| Fwd PE | 13.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOVE is valued a bit cheaper than 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
LOVE's 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 46.12% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y54.73%
EPS Next 3Y46.12%
5. Dividend
5.1 Amount
No dividends for LOVE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.97
+0.03 (+0.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners104.15%
Inst Owner Change-6.99%
Ins Owners4.49%
Ins Owner Change4.23%
Market Cap276.01M
Analysts83.33
Price Target29.17 (53.77%)
Short Float %20.71%
Short Ratio8.59
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)10.63%
Min EPS beat(2)9.79%
Max EPS beat(2)11.47%
EPS beat(4)4
Avg EPS beat(4)11.55%
Min EPS beat(4)9.79%
Max EPS beat(4)15.01%
EPS beat(8)7
Avg EPS beat(8)22.3%
EPS beat(12)10
Avg EPS beat(12)20.68%
EPS beat(16)14
Avg EPS beat(16)96.18%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-1.2%
Max Revenue beat(2)1.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-5.35%
Max Revenue beat(4)1.2%
Revenue beat(8)3
Avg Revenue beat(8)-1.69%
Revenue beat(12)6
Avg Revenue beat(12)0.96%
Revenue beat(16)10
Avg Revenue beat(16)2.78%
PT rev (1m)0%
PT rev (3m)-7.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-249.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.1 | ||
| Fwd PE | 13.21 | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 59.82 | ||
| P/B | 1.37 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)0.7
EY3.69%
EPS(NY)1.44
Fwd EY7.57%
FCF(TTM)-1.26
FCFYN/A
OCF(TTM)0.32
OCFY1.67%
SpS47.17
BVpS13.83
TBVpS13.7
PEG (NY)0.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 6.8% | ||
| ROCE | 4.46% | ||
| ROIC | 3.24% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.51% | ||
| OM | 2.41% | ||
| PM (TTM) | 1.99% | ||
| GM | 58.3% | ||
| FCFM | N/A |
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-Score4
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 154.6% | ||
| Cap/Sales | 3.34% | ||
| Interest Coverage | 135.66 | ||
| Cash Conversion | 14.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 2.31 |
F-Score4
WACC8.94%
ROIC/WACC0.36
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)-17.65%
EPS 3Y-40.79%
EPS 5YN/A
EPS Q2Q%12.05%
EPS Next Y76.46%
EPS Next 2Y54.73%
EPS Next 3Y46.12%
EPS Next 5Y37.49%
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y10.96%
Revenue growth 5Y23.87%
Sales Q2Q%4.32%
Revenue Next Year4.84%
Revenue Next 2Y6.03%
Revenue Next 3Y8.64%
Revenue Next 5Y8.66%
EBIT growth 1Y-7.64%
EBIT growth 3Y-30.47%
EBIT growth 5YN/A
EBIT Next Year530.08%
EBIT Next 3Y108.34%
EBIT Next 5Y62.22%
FCF growth 1Y-7.58%
FCF growth 3Y-0.13%
FCF growth 5YN/A
OCF growth 1Y-44%
OCF growth 3Y6.08%
OCF growth 5YN/A