LOVESAC CO/THE (LOVE) Stock Fundamental Analysis
NASDAQ:LOVE - Nasdaq - US54738L1098 - Common Stock - Currency: USD
Overall LOVE gets a fundamental rating of 4 out of 10. We evaluated LOVE against 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
In the past year LOVE was profitable.
LOVE had a positive operating cash flow in the past year.
Each year in the past 5 years LOVE has 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 44.44% of the companies in the same industry.
The Return On Equity of LOVE (6.80%) is comparable to the rest of the industry.
LOVE's Return On Invested Capital of 3.24% is on the low side compared to the rest of the industry. LOVE is outperformed by 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 10.08%.
| 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
The Profit Margin of LOVE (1.99%) is comparable to the rest of the industry.
LOVE's Profit Margin has declined in the last couple of years.
LOVE has a worse Operating Margin (2.41%) than 65.08% of its industry peers.
LOVE's Operating Margin has declined in the last couple of years.
The Gross Margin of LOVE (58.30%) is better than 95.24% of its industry peers.
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.
The number of shares outstanding for LOVE has been reduced compared to 1 year ago.
LOVE has more shares outstanding than it did 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
An Altman-Z score of 2.28 indicates that LOVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.28, LOVE is doing worse than 61.90% 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 | 2.28 |
ROIC/WACC0.37
WACC8.87%
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.
LOVE's Current ratio of 1.60 is on the low side compared to the rest of the industry. LOVE is outperformed by 71.43% of its industry peers.
A Quick Ratio of 0.50 indicates that LOVE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.50, LOVE is doing worse than 73.02% of the companies in the same industry.
| 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%.
LOVE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -40.79% yearly.
The Revenue has decreased by -0.77% in the past year.
LOVE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.87% yearly.
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
The Earnings Per Share is expected to grow by 37.49% on average over the next years. This is a very strong growth
Based on estimates for the next years, LOVE will show a quite strong growth in Revenue. The Revenue will grow by 8.66% on average per year.
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
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.
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 24.90, which indicates a rather expensive current valuation of LOVE.
LOVE's Price/Earnings ratio is a bit more expensive when compared to the industry. LOVE is more expensive than 63.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, LOVE is valued at the same level.
With a Price/Forward Earnings ratio of 12.13, LOVE is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as LOVE.
The average S&P500 Price/Forward Earnings ratio is at 36.21. LOVE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.9 | ||
| Fwd PE | 12.13 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LOVE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.5 |
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 46.12% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y54.73%
EPS Next 3Y46.12%
5. Dividend
5.1 Amount
LOVE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.43
-0.58 (-3.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners106.12%
Inst Owner Change-0.76%
Ins Owners4.1%
Ins Owner Change4.23%
Market Cap253.61M
Analysts83.33
Price Target29.17 (67.36%)
Short Float %20.34%
Short Ratio7.86
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)-9.68%
EPS NQ rev (1m)-168.1%
EPS NQ rev (3m)-249.5%
EPS NY rev (1m)2.37%
EPS NY rev (3m)-12.77%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.9 | ||
| Fwd PE | 12.13 | ||
| P/S | 0.37 | ||
| P/FCF | N/A | ||
| P/OCF | 54.96 | ||
| P/B | 1.26 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 7.5 |
EPS(TTM)0.7
EY4.02%
EPS(NY)1.44
Fwd EY8.24%
FCF(TTM)-1.26
FCFYN/A
OCF(TTM)0.32
OCFY1.82%
SpS47.17
BVpS13.83
TBVpS13.7
PEG (NY)0.33
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 | 2.28 |
F-Score4
WACC8.87%
ROIC/WACC0.37
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 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