LOVESAC CO/THE (LOVE) Stock Fundamental Analysis
USA - NASDAQ:LOVE - US54738L1098 - Common Stock
14.19 USD
-0.41 (-2.81%)
14.55 USD
+0.36 (+2.54%)
Overall LOVE gets a fundamental rating of 5 out of 10. We evaluated LOVE against 63 industry peers in the Household Durables industry. LOVE has only an average score on both its financial health and profitability. 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.
LOVE had a positive operating cash flow in the past year.
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 (2.61%) which is comparable to the rest of the industry.
LOVE has a Return On Equity (6.53%) which is in line with its industry peers.
The Return On Invested Capital of LOVE (3.47%) is worse than 61.90% of its industry peers.
LOVE had an Average Return On Invested Capital over the past 3 years of 5.56%. This 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 (1.87%) which is comparable to the rest of the industry.
LOVE's Profit Margin has declined in the last couple of years.
LOVE has a Operating Margin of 2.55%. This is in the lower half of the industry: LOVE underperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of LOVE has declined.
With an excellent Gross Margin value of 57.71%, 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 | 2.55% | ||
| 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.
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.
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 2.10 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 2.10, LOVE is not doing good in the industry: 71.43% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.1 |
ROIC/WACC0.38
WACC9.06%
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.
LOVE's Current ratio of 1.52 is on the low side compared to the rest of the industry. LOVE is outperformed by 79.37% of its industry peers.
A Quick Ratio of 0.53 indicates that LOVE may have some problems paying 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.
The earnings per share for LOVE have been decreasing by -40.79% on average. This is quite bad
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
LOVE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.49% yearly.
Based on estimates for the next years, LOVE will show a quite strong growth in Revenue. The Revenue will grow by 8.89% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LOVE is valuated rather expensively with a Price/Earnings ratio of 22.52.
Based on the Price/Earnings ratio, LOVE is valued a bit more expensive than 61.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of LOVE to the average of the S&P500 Index (27.02), we can say LOVE is valued inline with the index average.
A Price/Forward Earnings ratio of 11.07 indicates a reasonable valuation of LOVE.
The rest of the industry has a similar Price/Forward Earnings ratio as LOVE.
LOVE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 11.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOVE is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.33 |
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)0.48
PEG (5Y)N/A
EPS Next 2Y46.16%
EPS Next 3Y72.89%
5. Dividend
5.1 Amount
No dividends for LOVE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.19
-0.41 (-2.81%)
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 Cap207.32M
Analysts83.33
Price Target29.92 (110.85%)
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)-138.19%
EPS NQ rev (3m)-232.42%
EPS NY rev (1m)-16.76%
EPS NY rev (3m)-16.76%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 11.07 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | 19.57 | ||
| P/B | 1.05 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 5.33 |
EPS(TTM)0.63
EY4.44%
EPS(NY)1.28
Fwd EY9.03%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)0.73
OCFY5.11%
SpS47.25
BVpS13.52
TBVpS13.38
PEG (NY)0.48
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 | 2.1 |
F-Score4
WACC9.06%
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