LOVESAC CO/THE (LOVE) Stock Fundamental Analysis
USA - NASDAQ:LOVE - US54738L1098 - Common Stock
15.33 USD
-0.14 (-0.9%)
15.33 USD
0 (0%)
Taking everything into account, LOVE scores 4 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LOVE had positive earnings in the past year.
LOVE had a positive operating cash flow in the past year.
LOVE had positive earnings in each of the past 5 years.
Of the past 5 years LOVE 4 years had a positive operating cash flow.
1.2 Ratios
LOVE's Return On Assets of 2.61% is in line compared to the rest of the industry. LOVE outperforms 47.62% of its industry peers.
Looking at the Return On Equity, with a value of 6.53%, LOVE is in line with its industry, outperforming 46.03% of the companies in the same industry.
The Return On Invested Capital of LOVE (3.47%) is worse than 61.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LOVE is below the industry average of 10.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 6.53% | ||
| ROIC | 3.47% |
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 of 1.87%. This is comparable to the rest of the industry: LOVE outperforms 42.86% of its industry peers.
LOVE's Profit Margin has declined in the last couple of years.
LOVE's Operating Margin of 2.55% is on the low side compared to the rest of the industry. LOVE is outperformed by 66.67% of its industry peers.
LOVE's Operating Margin has declined in the last couple of years.
LOVE has a Gross Margin of 57.71%. This is amongst the best in the industry. LOVE outperforms 95.24% of its industry peers.
LOVE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.55% | ||
| PM (TTM) | 1.87% | ||
| GM | 57.71% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LOVE is destroying value.
LOVE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LOVE has been increased compared to 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 2.14 indicates that LOVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.14, LOVE is not doing good in the industry: 73.02% of the companies in the same industry are doing better.
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 | N/A | ||
| Altman-Z | 2.14 |
ROIC/WACC0.38
WACC9.15%
2.3 Liquidity
LOVE has a Current Ratio of 1.52. This is a normal value and indicates that LOVE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.52, LOVE is doing worse than 79.37% of the companies in the same industry.
LOVE has a Quick Ratio of 1.52. This is a bad value and indicates that LOVE is not financially healthy enough and could expect problems in meeting its short term obligations.
LOVE has a Quick ratio of 0.53. This is in the lower half of the industry: LOVE underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.53% over the past year.
LOVE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -40.79% yearly.
LOVE shows a decrease in Revenue. In the last year, the revenue decreased by -0.50%.
LOVE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.87% yearly.
EPS 1Y (TTM)23.53%
EPS 3Y-40.79%
EPS 5YN/A
EPS Q2Q%-18.42%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y10.96%
Revenue growth 5Y23.87%
Sales Q2Q%2.52%
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
The Revenue is expected to grow by 8.89% on average over the next years. This is quite good.
EPS Next Y46.88%
EPS Next 2Y46.16%
EPS Next 3Y72.89%
EPS Next 5Y37.49%
Revenue Next Year4.99%
Revenue Next 2Y6.12%
Revenue Next 3Y9.57%
Revenue Next 5Y8.89%
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
With a Price/Earnings ratio of 24.33, LOVE is valued on the expensive side.
61.90% of the companies in the same industry are cheaper than LOVE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.91. LOVE is around the same levels.
With a Price/Forward Earnings ratio of 11.96, the valuation of LOVE can be described as very reasonable.
LOVE's Price/Forward Earnings is on the same level as the industry average.
LOVE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 11.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOVE is valued cheaper than 82.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.9 |
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.
LOVE's earnings are expected to grow with 72.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y46.16%
EPS Next 3Y72.89%
5. Dividend
5.1 Amount
LOVE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.33
-0.14 (-0.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.39%
Inst Owner Change0%
Ins Owners4.46%
Ins Owner Change3.25%
Market Cap223.97M
Analysts83.33
Price Target29.92 (95.17%)
Short Float %23.99%
Short Ratio8.98
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)23.65%
Min EPS beat(2)9.79%
Max EPS beat(2)37.51%
EPS beat(4)4
Avg EPS beat(4)17.18%
Min EPS beat(4)9.79%
Max EPS beat(4)37.51%
EPS beat(8)7
Avg EPS beat(8)18.15%
EPS beat(12)10
Avg EPS beat(12)23.25%
EPS beat(16)14
Avg EPS beat(16)53.28%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)-1.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-5.35%
Max Revenue beat(4)1.2%
Revenue beat(8)2
Avg Revenue beat(8)-1.98%
Revenue beat(12)5
Avg Revenue beat(12)-0.53%
Revenue beat(16)9
Avg Revenue beat(16)2.02%
PT rev (1m)2.56%
PT rev (3m)2.56%
EPS NQ rev (1m)-232.42%
EPS NQ rev (3m)-232.42%
EPS NY rev (1m)-16.76%
EPS NY rev (3m)-14.79%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 11.96 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | 21.14 | ||
| P/B | 1.13 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 5.9 |
EPS(TTM)0.63
EY4.11%
EPS(NY)1.28
Fwd EY8.36%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)0.73
OCFY4.73%
SpS47.25
BVpS13.52
TBVpS13.38
PEG (NY)0.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 6.53% | ||
| ROCE | 4.77% | ||
| ROIC | 3.47% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 3.84% | ||
| OM | 2.55% | ||
| PM (TTM) | 1.87% | ||
| GM | 57.71% | ||
| 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 Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 142.35% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 144.25 | ||
| Cash Conversion | 32.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.14 |
F-Score4
WACC9.15%
ROIC/WACC0.38
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)23.53%
EPS 3Y-40.79%
EPS 5YN/A
EPS Q2Q%-18.42%
EPS Next Y46.88%
EPS Next 2Y46.16%
EPS Next 3Y72.89%
EPS Next 5Y37.49%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y10.96%
Revenue growth 5Y23.87%
Sales Q2Q%2.52%
Revenue Next Year4.99%
Revenue Next 2Y6.12%
Revenue Next 3Y9.57%
Revenue Next 5Y8.89%
EBIT growth 1Y66.84%
EBIT growth 3Y-30.47%
EBIT growth 5YN/A
EBIT Next Year496.6%
EBIT Next 3Y105.96%
EBIT Next 5Y61.44%
FCF growth 1Y-125.95%
FCF growth 3Y-0.13%
FCF growth 5YN/A
OCF growth 1Y-84.61%
OCF growth 3Y6.08%
OCF growth 5YN/A