LOVESAC CO/THE (LOVE)
US54738L1098 - Common Stock
Overall LOVE gets a fundamental rating of 5 out of 10. We evaluated LOVE against 67 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.
LOVE had positive earnings in 4 of the past 5 years.
In multiple years LOVE reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 4.96%, LOVE perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
The Return On Equity of LOVE (10.99%) is comparable to the rest of the industry.
LOVE has a Return On Invested Capital of 5.87%. This is comparable to the rest of the industry: LOVE outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LOVE is in line with the industry average of 10.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 10.99% | ||
| ROIC | 5.87% |
ROA(3y)8.1%
ROA(5y)4.16%
ROE(3y)18.27%
ROE(5y)10.31%
ROIC(3y)8.63%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.41%, LOVE is in line with its industry, outperforming 45.45% of the companies in the same industry.
LOVE's Profit Margin has declined in the last couple of years.
LOVE's Operating Margin of 4.29% is in line compared to the rest of the industry. LOVE outperforms 40.91% of its industry peers.
In the last couple of years the Operating Margin of LOVE has declined.
LOVE has a better Gross Margin (57.28%) than 93.94% of its industry peers.
In the last couple of years the Gross Margin of LOVE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.29% | ||
| PM (TTM) | 3.41% | ||
| GM | 57.28% |
OM growth 3Y-3.02%
OM growth 5YN/A
PM growth 3Y-9.41%
PM growth 5YN/A
GM growth 3Y1.66%
GM growth 5Y0.89%
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 more shares outstanding than it did 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
LOVE has an Altman-Z score of 2.87. 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.
LOVE has a Altman-Z score (2.87) which is comparable to the rest of the industry.
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 | 0 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.55
WACC10.64%
2.3 Liquidity
A Current Ratio of 2.02 indicates that LOVE has no problem at all paying its short term obligations.
LOVE has a worse Current ratio (2.02) than 60.61% of its industry peers.
A Quick Ratio of 1.09 indicates that LOVE should not have too much problems paying its short term obligations.
LOVE's Quick ratio of 1.09 is in line compared to the rest of the industry. LOVE outperforms 56.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
LOVE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.45%.
Measured over the past years, LOVE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.18% on average per year.
LOVE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.53%.
Measured over the past years, LOVE shows a very strong growth in Revenue. The Revenue has been growing by 33.38% on average per year.
EPS 1Y (TTM)-20.45%
EPS 3Y17.18%
EPS 5YN/A
EPS growth Q2Q7.47%
Revenue 1Y (TTM)7.53%
Revenue growth 3Y29.73%
Revenue growth 5Y33.38%
Revenue growth Q2Q5.03%
3.2 Future
The Earnings Per Share is expected to grow by 14.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.33% on average over the next years.
EPS Next Y55.55%
EPS Next 2Y50.77%
EPS Next 3Y39.36%
EPS Next 5Y14.41%
Revenue Next Year7.89%
Revenue Next 2Y11.43%
Revenue Next 3Y7.56%
Revenue Next 5Y7.33%
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 stable.
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 17.11, which indicates a rather expensive current valuation of LOVE.
LOVE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.11, LOVE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.00, the valuation of LOVE can be described as reasonable.
LOVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LOVE is cheaper than 63.64% of the companies in the same industry.
LOVE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 11 |
4.2 Price Multiples
LOVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LOVE is cheaper than 87.88% of the companies 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 75.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.85 | ||
| EV/EBITDA | 6.66 |
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 39.36% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y50.77%
EPS Next 3Y39.36%
5. Dividend
5.1 Amount
No dividends for LOVE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LOVESAC CO/THE
NASDAQ:LOVE (5/7/2024, 7:07:53 PM)
After market: 24 +0.05 (+0.21%)23.95
-0.03 (-0.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap370.99M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 10.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.29% | ||
| PM (TTM) | 3.41% | ||
| GM | 57.28% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-20.45%
EPS 3Y17.18%
EPS 5Y
EPS growth Q2Q
EPS Next Y55.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.53%
Revenue growth 3Y29.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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