LOVESAC CO/THE (LOVE) Stock Fundamental Analysis
NASDAQ:LOVE - Nasdaq - US54738L1098 - Common Stock - Currency: USD
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. Both the profitability and the financial health of LOVE get a neutral evaluation. Nothing too spectacular is happening here. 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
LOVE has a Return On Assets of 2.83%. This is comparable to the rest of the industry: LOVE outperforms 42.86% of its industry peers.
The Return On Equity of LOVE (6.80%) is comparable to the rest of the industry.
LOVE has a worse Return On Invested Capital (3.24%) than 65.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LOVE is below the industry average of 10.55%.
| 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 41.27% of the companies in the same industry.
LOVE's Profit Margin has declined in the last couple of years.
LOVE's Operating Margin of 2.41% is on the low side compared to the rest of the industry. LOVE is outperformed by 65.08% of its industry peers.
In the last couple of years the Operating Margin of LOVE has declined.
With an excellent Gross Margin value of 58.30%, LOVE belongs to the best of the industry, outperforming 95.24% 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 | 2.41% | ||
| 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
LOVE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LOVE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LOVE has more shares outstanding
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 2.32. 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 2.32, LOVE perfoms like the industry average, outperforming 41.27% 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 | N/A | ||
| Altman-Z | 2.32 |
ROIC/WACC0.36
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.60 indicates that LOVE should not have too much problems paying its short term obligations.
LOVE has a Current ratio of 1.60. This is in the lower half of the industry: LOVE underperforms 71.43% of its industry peers.
A Quick Ratio of 0.50 indicates that LOVE may have some problems paying its short term obligations.
LOVE has a worse Quick ratio (0.50) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The earnings per share for LOVE have decreased strongly by -17.65% in the last year.
Measured over the past years, LOVE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -40.79% on average per year.
Looking at the last year, LOVE shows a decrease in Revenue. The Revenue has decreased by -0.77% in the last year.
The Revenue has been growing by 23.87% on average over the past years. This is a very strong growth!
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
LOVE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.49% yearly.
LOVE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.66% yearly.
EPS Next Y72.38%
EPS Next 2Y52.33%
EPS Next 3Y68.22%
EPS Next 5Y37.49%
Revenue Next Year4.75%
Revenue Next 2Y5.98%
Revenue Next 3Y9.32%
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 25.87, which means the current valuation is very expensive for LOVE.
Based on the Price/Earnings ratio, LOVE is valued a bit more expensive than 65.08% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, LOVE is valued at the same level.
LOVE is valuated correctly with a Price/Forward Earnings ratio of 13.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOVE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, LOVE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LOVE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.07 |
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 68.22% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y52.33%
EPS Next 3Y68.22%
5. Dividend
5.1 Amount
No dividends for LOVE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.11
-0.75 (-3.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners106.12%
Inst Owner Change0%
Ins Owners4.1%
Ins Owner Change2.79%
Market Cap263.50M
Analysts83.33
Price Target29.17 (61.07%)
Short Float %21.5%
Short Ratio6.7
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)-7.74%
PT rev (3m)-22.7%
EPS NQ rev (1m)-249.5%
EPS NQ rev (3m)-229.91%
EPS NY rev (1m)-14.79%
EPS NY rev (3m)-8.1%
Revenue NQ rev (1m)-1.27%
Revenue NQ rev (3m)-3.77%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 13.01 | ||
| P/S | 0.39 | ||
| P/FCF | N/A | ||
| P/OCF | 58.29 | ||
| P/B | 1.34 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 8.07 |
EPS(TTM)0.7
EY3.87%
EPS(NY)1.39
Fwd EY7.69%
FCF(TTM)-1.23
FCFYN/A
OCF(TTM)0.31
OCFY1.72%
SpS46.22
BVpS13.55
TBVpS13.42
PEG (NY)0.36
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 | 2.32 |
F-Score4
WACC9.07%
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 Y72.38%
EPS Next 2Y52.33%
EPS Next 3Y68.22%
EPS Next 5Y37.49%
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y10.96%
Revenue growth 5Y23.87%
Sales Q2Q%4.32%
Revenue Next Year4.75%
Revenue Next 2Y5.98%
Revenue Next 3Y9.32%
Revenue Next 5Y8.66%
EBIT growth 1Y-7.64%
EBIT growth 3Y-30.47%
EBIT growth 5YN/A
EBIT Next Year504.7%
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