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LOVESAC CO/THE (LOVE) Stock Fundamental Analysis

NASDAQ:LOVE - Nasdaq - US54738L1098 - Common Stock

26.08  -0.18 (-0.69%)

Fundamental Rating

4

LOVE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. The financial health of LOVE is average, but there are quite some concerns on its profitability. LOVE is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

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.
Of the past 5 years LOVE 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: LOVE reported negative operating cash flow in multiple years.
LOVE Yearly Net Income VS EBIT VS OCF VS FCFLOVE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M -40M 60M

1.2 Ratios

LOVE has a worse Return On Assets (1.44%) than 61.54% of its industry peers.
Looking at the Return On Equity, with a value of 3.66%, LOVE is doing worse than 61.54% of the companies in the same industry.
LOVE has a Return On Invested Capital of 1.32%. This is in the lower half of the industry: LOVE underperforms 66.15% of its industry peers.
LOVE had an Average Return On Invested Capital over the past 3 years of 8.63%. This is below the industry average of 11.99%.
The 3 year average ROIC (8.63%) for LOVE is well above the current ROIC(1.32%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 1.44%
ROE 3.66%
ROIC 1.32%
ROA(3y)8.1%
ROA(5y)4.16%
ROE(3y)18.27%
ROE(5y)10.31%
ROIC(3y)8.63%
ROIC(5y)N/A
LOVE Yearly ROA, ROE, ROICLOVE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -100 -200 -300

1.3 Margins

With a Profit Margin value of 1.04%, LOVE is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
LOVE's Profit Margin has declined in the last couple of years.
LOVE's Operating Margin of 0.93% is on the low side compared to the rest of the industry. LOVE is outperformed by 69.23% of its industry peers.
In the last couple of years the Operating Margin of LOVE has declined.
Looking at the Gross Margin, with a value of 58.25%, LOVE belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
LOVE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 0.93%
PM (TTM) 1.04%
GM 58.25%
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%
LOVE Yearly Profit, Operating, Gross MarginsLOVE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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5

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 more shares outstanding
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.
LOVE Yearly Shares OutstandingLOVE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
LOVE Yearly Total Debt VS Total AssetsLOVE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

LOVE has an Altman-Z score of 2.41. 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 2.41, LOVE is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.41
ROIC/WACC0.14
WACC9.25%
LOVE Yearly LT Debt VS Equity VS FCFLOVE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M

2.3 Liquidity

LOVE has a Current Ratio of 1.49. This is a normal value and indicates that LOVE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.49, LOVE is not doing good in the industry: 75.38% of the companies in the same industry are doing better.
A Quick Ratio of 0.68 indicates that LOVE may have some problems paying its short term obligations.
LOVE has a Quick ratio of 0.68. This is in the lower half of the industry: LOVE underperforms 64.62% of its industry peers.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 0.68
LOVE Yearly Current Assets VS Current LiabilitesLOVE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

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5

3. Growth

3.1 Past

The earnings per share for LOVE have decreased strongly by -73.23% in the last year.
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.
The Revenue has been growing slightly by 0.20% in the past year.
The Revenue has been growing by 33.38% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-73.23%
EPS 3Y17.18%
EPS 5YN/A
EPS Q2Q%-113.33%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y29.73%
Revenue growth 5Y33.38%
Sales Q2Q%-2.68%

3.2 Future

LOVE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.40% yearly.
The Revenue is expected to grow by 6.71% on average over the next years.
EPS Next Y-17.06%
EPS Next 2Y-2.55%
EPS Next 3Y7.55%
EPS Next 5Y14.41%
Revenue Next Year-6.38%
Revenue Next 2Y0.3%
Revenue Next 3Y3.58%
Revenue Next 5Y6.71%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LOVE Yearly Revenue VS EstimatesLOVE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 200M 400M 600M 800M 1B
LOVE Yearly EPS VS EstimatesLOVE Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 1 -1 2 3

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1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 76.71, the valuation of LOVE can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LOVE indicates a slightly more expensive valuation: LOVE is more expensive than 67.69% of the companies listed in the same industry.
LOVE is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.62, LOVE is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOVE indicates a slightly more expensive valuation: LOVE is more expensive than 63.08% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LOVE to the average of the S&P500 Index (24.44), we can say LOVE is valued inline with the index average.
Industry RankSector Rank
PE 76.71
Fwd PE 19.62
LOVE Price Earnings VS Forward Price EarningsLOVE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LOVE indicates a slightly more expensive valuation: LOVE is more expensive than 63.08% of the companies listed in the same industry.
LOVE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LOVE is cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.26
EV/EBITDA 16.5
LOVE Per share dataLOVE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.55%
EPS Next 3Y7.55%

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0

5. Dividend

5.1 Amount

LOVE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LOVESAC CO/THE

NASDAQ:LOVE (1/22/2025, 11:02:03 AM)

26.08

-0.18 (-0.69%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)12-12 2024-12-12/bmo
Earnings (Next)N/A N/A
Inst Owners104.11%
Inst Owner Change0%
Ins Owners7.86%
Ins Owner Change-0.37%
Market Cap402.41M
Analysts83.33
Price Target37.74 (44.71%)
Short Float %25.07%
Short Ratio8.45
Dividend
Industry RankSector 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)12.47%
Min EPS beat(2)9.93%
Max EPS beat(2)15.01%
EPS beat(4)3
Avg EPS beat(4)8.85%
Min EPS beat(4)-4.76%
Max EPS beat(4)15.24%
EPS beat(8)6
Avg EPS beat(8)23.93%
EPS beat(12)10
Avg EPS beat(12)54.42%
EPS beat(16)14
Avg EPS beat(16)110.59%
Revenue beat(2)0
Avg Revenue beat(2)-3.17%
Min Revenue beat(2)-5.34%
Max Revenue beat(2)-1%
Revenue beat(4)1
Avg Revenue beat(4)-3.06%
Min Revenue beat(4)-7.44%
Max Revenue beat(4)1.53%
Revenue beat(8)4
Avg Revenue beat(8)-0.36%
Revenue beat(12)7
Avg Revenue beat(12)2.68%
Revenue beat(16)11
Avg Revenue beat(16)3.89%
PT rev (1m)5.21%
PT rev (3m)7.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.1%
Valuation
Industry RankSector Rank
PE 76.71
Fwd PE 19.62
P/S 0.58
P/FCF 14.26
P/OCF 7.85
P/B 2.05
P/tB 2.07
EV/EBITDA 16.5
EPS(TTM)0.34
EY1.3%
EPS(NY)1.33
Fwd EY5.1%
FCF(TTM)1.83
FCFY7.01%
OCF(TTM)3.32
OCFY12.74%
SpS44.7
BVpS12.73
TBVpS12.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.44%
ROE 3.66%
ROCE 1.79%
ROIC 1.32%
ROICexc 1.59%
ROICexgc 1.6%
OM 0.93%
PM (TTM) 1.04%
GM 58.25%
FCFM 4.09%
ROA(3y)8.1%
ROA(5y)4.16%
ROE(3y)18.27%
ROE(5y)10.31%
ROIC(3y)8.63%
ROIC(5y)N/A
ROICexc(3y)11.88%
ROICexc(5y)N/A
ROICexgc(3y)11.97%
ROICexgc(5y)N/A
ROCE(3y)11.76%
ROCE(5y)N/A
ROICexcg growth 3Y-38.34%
ROICexcg growth 5YN/A
ROICexc growth 3Y-37.5%
ROICexc growth 5YN/A
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%
F-Score5
Asset Turnover1.38
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 160.29%
Cap/Sales 3.34%
Interest Coverage 39.72
Cash Conversion 246.33%
Profit Quality 391.93%
Current Ratio 1.49
Quick Ratio 0.68
Altman-Z 2.41
F-Score5
WACC9.25%
ROIC/WACC0.14
Cap/Depr(3y)219.95%
Cap/Depr(5y)201.88%
Cap/Sales(3y)3.71%
Cap/Sales(5y)3.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-73.23%
EPS 3Y17.18%
EPS 5YN/A
EPS Q2Q%-113.33%
EPS Next Y-17.06%
EPS Next 2Y-2.55%
EPS Next 3Y7.55%
EPS Next 5Y14.41%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y29.73%
Revenue growth 5Y33.38%
Sales Q2Q%-2.68%
Revenue Next Year-6.38%
Revenue Next 2Y0.3%
Revenue Next 3Y3.58%
Revenue Next 5Y6.71%
EBIT growth 1Y-75.43%
EBIT growth 3Y25.82%
EBIT growth 5YN/A
EBIT Next Year23.54%
EBIT Next 3Y19.75%
EBIT Next 5Y18.38%
FCF growth 1Y166.94%
FCF growth 3Y14.49%
FCF growth 5YN/A
OCF growth 1Y349.38%
OCF growth 3Y23.56%
OCF growth 5YN/A