LOVESAC CO/THE (LOVE) Stock Fundamental Analysis
NASDAQ:LOVE - Nasdaq - US54738L1098 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to LOVE. LOVE was compared to 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.
1. Profitability
1.1 Basic Checks
In the past year LOVE was profitable.
LOVE had a positive operating cash flow in the past year.
Of the past 5 years LOVE 4 years were profitable.
In multiple years LOVE reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.44%, LOVE is doing worse than 60.00% of the companies in the same industry.
LOVE has a Return On Equity of 3.66%. This is in the lower half of the industry: LOVE underperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.32%, LOVE is doing worse than 66.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LOVE is below the industry average of 12.03%.
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 Rank | Sector 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
1.3 Margins
LOVE has a worse Profit Margin (1.04%) than 60.00% of its industry peers.
LOVE's Profit Margin has declined in the last couple of years.
LOVE has a worse Operating Margin (0.93%) than 67.69% of its industry peers.
In the last couple of years the Operating Margin of LOVE has declined.
The Gross Margin of LOVE (58.25%) is better than 95.38% 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 | 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
An Altman-Z score of 2.27 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 2.27, LOVE is not doing good in the industry: 63.08% of the companies in the same industry are doing better.
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 | 0 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.14
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.49 indicates that LOVE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.49, LOVE is not doing good in the industry: 76.92% 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.
The Quick ratio of LOVE (0.68) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The earnings per share for LOVE have decreased strongly by -73.23% in the last year.
LOVE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.18% yearly.
LOVE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.20%.
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)-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.
Based on estimates for the next years, LOVE will show a small growth in Revenue. The Revenue will grow by 6.71% on average per year.
EPS Next Y-66.97%
EPS Next 2Y-10.34%
EPS Next 3Y1.22%
EPS Next 5Y14.41%
Revenue Next Year-6.38%
Revenue Next 2Y0.3%
Revenue Next 3Y3.78%
Revenue Next 5Y6.71%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 63.68, the valuation of LOVE can be described as expensive.
67.69% of the companies in the same industry are cheaper than LOVE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. LOVE is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 19.24 indicates a rather expensive valuation of LOVE.
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 (22.68), we can say LOVE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.68 | ||
| Fwd PE | 19.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LOVE.
Based on the Price/Free Cash Flow ratio, LOVE is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.84 | ||
| EV/EBITDA | 13.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.34%
EPS Next 3Y1.22%
5. Dividend
5.1 Amount
No dividends for LOVE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.65
-1.13 (-4.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.74%
Inst Owner Change-2.5%
Ins Owners7.77%
Ins Owner Change-1.88%
Market Cap334.06M
Analysts83.33
Price Target37.74 (74.32%)
Short Float %24.13%
Short Ratio8.29
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)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)-5.35%
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)0%
PT rev (3m)5.21%
EPS NQ rev (1m)-25.91%
EPS NQ rev (3m)-10.37%
EPS NY rev (1m)-60.18%
EPS NY rev (3m)-60.18%
Revenue NQ rev (1m)-14.2%
Revenue NQ rev (3m)-13.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.68 | ||
| Fwd PE | 19.24 | ||
| P/S | 0.48 | ||
| P/FCF | 11.84 | ||
| P/OCF | 6.52 | ||
| P/B | 1.7 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 13.09 |
EPS(TTM)0.34
EY1.57%
EPS(NY)1.13
Fwd EY5.2%
FCF(TTM)1.83
FCFY8.45%
OCF(TTM)3.32
OCFY15.35%
SpS44.7
BVpS12.73
TBVpS12.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.27 |
F-Score5
WACC9.18%
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-66.97%
EPS Next 2Y-10.34%
EPS Next 3Y1.22%
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 3Y3.78%
Revenue Next 5Y6.71%
EBIT growth 1Y-75.43%
EBIT growth 3Y25.82%
EBIT growth 5YN/A
EBIT Next Year23.54%
EBIT Next 3Y20.57%
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