LOVESAC CO/THE (LOVE) Stock Fundamental Analysis
USA - NASDAQ:LOVE - US54738L1098 - Common Stock
12.16 USD
-0.86 (-6.61%)
12.25 USD
+0.09 (+0.74%)
LOVE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 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 each of the past 5 years.
LOVE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.61%, LOVE perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
LOVE has a Return On Equity (6.53%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 3.47%, LOVE is doing worse than 62.90% 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 9.86%.
| 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 of 1.87%. This is comparable to the rest of the industry: LOVE outperforms 40.32% of its industry peers.
LOVE's Profit Margin has declined in the last couple of years.
LOVE's Operating Margin of 2.55% is on the low side compared to the rest of the industry. LOVE is outperformed by 67.74% of its industry peers.
LOVE's Operating Margin has declined in the last couple of years.
LOVE has a Gross Margin of 57.71%. This is amongst the best in the industry. LOVE outperforms 95.16% of its industry peers.
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.
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 2.04 indicates that LOVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LOVE (2.04) is worse than 69.35% of its industry peers.
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 | 2.04 |
ROIC/WACC0.39
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.52 indicates that LOVE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.52, LOVE is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
LOVE has a Quick Ratio of 1.52. This is a bad value and indicates that LOVE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.53, LOVE is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
| 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.
Measured over the past years, LOVE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -40.79% on average per year.
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
The Earnings Per Share is expected to grow by 37.49% on average over the next years. This is a very strong growth
LOVE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.89% yearly.
EPS Next Y22.74%
EPS Next 2Y42.53%
EPS Next 3Y72.89%
EPS Next 5Y37.49%
Revenue Next Year5.12%
Revenue Next 2Y6.31%
Revenue Next 3Y9.57%
Revenue Next 5Y8.89%
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.
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
The Price/Earnings ratio is 19.30, which indicates a rather expensive current valuation of LOVE.
LOVE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.89. LOVE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 9.98, the valuation of LOVE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LOVE is valued a bit cheaper than the industry average as 66.13% of the companies are valued more expensively.
LOVE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 9.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOVE is valued cheaper than 91.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.41 |
4.3 Compensation for Growth
LOVE's 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)0.85
PEG (5Y)N/A
EPS Next 2Y42.53%
EPS Next 3Y72.89%
5. Dividend
5.1 Amount
LOVE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.16
-0.86 (-6.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.39%
Inst Owner Change-1.54%
Ins Owners4.46%
Ins Owner Change2.55%
Market Cap177.66M
Revenue(TTM)690.30M
Net Income(TTM)12.89M
Analysts83.33
Price Target29.92 (146.05%)
Short Float %23.89%
Short Ratio6.51
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)0%
PT rev (3m)2.56%
EPS NQ rev (1m)-13.77%
EPS NQ rev (3m)-278.2%
EPS NY rev (1m)-16.44%
EPS NY rev (3m)-30.44%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 9.98 | ||
| P/S | 0.26 | ||
| P/FCF | N/A | ||
| P/OCF | 16.77 | ||
| P/B | 0.9 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 4.41 |
EPS(TTM)0.63
EY5.18%
EPS(NY)1.22
Fwd EY10.02%
FCF(TTM)-0.69
FCFYN/A
OCF(TTM)0.73
OCFY5.96%
SpS47.25
BVpS13.52
TBVpS13.38
PEG (NY)0.85
PEG (5Y)N/A
Graham Number13.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 6.53% | ||
| ROCE | 4.78% | ||
| ROIC | 3.47% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 3.85% | ||
| 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%
ROICexgc growth 3Y-43.02%
ROICexgc 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 | 139.02% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 143.1 | ||
| Cash Conversion | 32.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.04 |
F-Score4
WACC8.78%
ROIC/WACC0.39
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 Y22.74%
EPS Next 2Y42.53%
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 Year5.12%
Revenue Next 2Y6.31%
Revenue Next 3Y9.57%
Revenue Next 5Y8.89%
EBIT growth 1Y66.85%
EBIT growth 3Y-30.47%
EBIT growth 5YN/A
EBIT Next Year496.6%
EBIT Next 3Y105.96%
EBIT Next 5Y61.44%
FCF growth 1Y-124.73%
FCF growth 3Y-0.13%
FCF growth 5YN/A
OCF growth 1Y-84.61%
OCF growth 3Y6.08%
OCF growth 5YN/A
LOVESAC CO/THE / LOVE FAQ
What is the fundamental rating for LOVE stock?
ChartMill assigns a fundamental rating of 5 / 10 to LOVE.
What is the valuation status for LOVE stock?
ChartMill assigns a valuation rating of 5 / 10 to LOVESAC CO/THE (LOVE). This can be considered as Fairly Valued.
What is the profitability of LOVE stock?
LOVESAC CO/THE (LOVE) has a profitability rating of 4 / 10.
What is the financial health of LOVESAC CO/THE (LOVE) stock?
The financial health rating of LOVESAC CO/THE (LOVE) is 5 / 10.
What is the earnings growth outlook for LOVESAC CO/THE?
The Earnings per Share (EPS) of LOVESAC CO/THE (LOVE) is expected to grow by 22.74% in the next year.