LOVESAC CO/THE (LOVE) Stock Fundamental Analysis
USA - NASDAQ:LOVE - US54738L1098 - Common Stock
17.66 USD
-0.01 (-0.06%)
17.61 USD
-0.05 (-0.28%)
Taking everything into account, LOVE scores 4 out of 10 in our fundamental rating. LOVE was compared to 63 industry peers in the Household Durables industry. LOVE has an average financial health and profitability rating. LOVE has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years LOVE 4 years had a positive operating cash flow.
1.2 Ratios
LOVE has a Return On Assets of 2.83%. This is comparable to the rest of the industry: LOVE outperforms 47.62% of its industry peers.
Looking at the Return On Equity, with a value of 6.80%, LOVE is in line with its industry, outperforming 46.03% of the companies in the same industry.
The Return On Invested Capital of LOVE (3.24%) is worse than 63.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LOVE is below the industry average of 10.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 6.8% | ||
| ROIC | 3.24% |
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's Profit Margin of 1.99% is in line compared to the rest of the industry. LOVE outperforms 42.86% of its industry peers.
In the last couple of years the Profit Margin of LOVE has declined.
With a Operating Margin value of 2.41%, LOVE is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of LOVE has declined.
LOVE has a better Gross Margin (58.30%) than 95.24% of its industry peers.
In the last couple of years the Gross Margin of LOVE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.41% | ||
| PM (TTM) | 1.99% | ||
| GM | 58.3% |
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.
LOVE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LOVE has more shares outstanding
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.
The Altman-Z score of LOVE (2.27) is worse than 63.49% of its industry peers.
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 | 2.27 |
ROIC/WACC0.37
WACC8.83%
2.3 Liquidity
LOVE has a Current Ratio of 1.60. This is a normal value and indicates that LOVE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of LOVE (1.60) is worse than 73.02% of its industry peers.
LOVE has a Quick Ratio of 1.60. This is a bad value and indicates that LOVE is not financially healthy enough and could expect problems in meeting its short term obligations.
LOVE has a Quick ratio of 0.50. This is in the lower half of the industry: LOVE underperforms 73.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
LOVE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.53%, which is quite impressive.
LOVE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -40.79% yearly.
Looking at the last year, LOVE shows a decrease in Revenue. The Revenue has decreased by -2.80% in the last year.
The Revenue has been growing by 23.87% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)23.53%
EPS 3Y-40.79%
EPS 5YN/A
EPS Q2Q%-18.42%
Revenue 1Y (TTM)-2.8%
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
The Revenue is expected to grow by 8.66% on average over the next years. This is quite good.
EPS Next Y76.46%
EPS Next 2Y54.73%
EPS Next 3Y68.22%
EPS Next 5Y37.49%
Revenue Next Year4.84%
Revenue Next 2Y6.03%
Revenue Next 3Y9.32%
Revenue Next 5Y8.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 28.03, the valuation of LOVE can be described as expensive.
Based on the Price/Earnings ratio, LOVE is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, LOVE is valued at the same level.
The Price/Forward Earnings ratio is 12.29, which indicates a correct valuation of LOVE.
LOVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LOVE is cheaper than 65.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, LOVE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.03 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
73.02% of the companies in the same industry are more expensive than LOVE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.34 |
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 68.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y54.73%
EPS Next 3Y68.22%
5. Dividend
5.1 Amount
No dividends for LOVE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.66
-0.01 (-0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners104.15%
Inst Owner Change-6.99%
Ins Owners4.49%
Ins Owner Change4.23%
Market Cap256.95M
Analysts83.33
Price Target29.92 (69.42%)
Short Float %21.56%
Short Ratio10.32
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)10.63%
Min EPS beat(2)9.79%
Max EPS beat(2)11.47%
EPS beat(4)4
Avg EPS beat(4)11.55%
Min EPS beat(4)9.79%
Max EPS beat(4)15.01%
EPS beat(8)7
Avg EPS beat(8)22.3%
EPS beat(12)10
Avg EPS beat(12)20.68%
EPS beat(16)14
Avg EPS beat(16)96.18%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-1.2%
Max Revenue beat(2)1.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-5.35%
Max Revenue beat(4)1.2%
Revenue beat(8)3
Avg Revenue beat(8)-1.69%
Revenue beat(12)6
Avg Revenue beat(12)0.96%
Revenue beat(16)10
Avg Revenue beat(16)2.78%
PT rev (1m)0%
PT rev (3m)-7.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-249.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.03 | ||
| Fwd PE | 12.29 | ||
| P/S | 0.37 | ||
| P/FCF | N/A | ||
| P/OCF | 55.69 | ||
| P/B | 1.28 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 7.34 |
EPS(TTM)0.63
EY3.57%
EPS(NY)1.44
Fwd EY8.13%
FCF(TTM)-1.26
FCFYN/A
OCF(TTM)0.32
OCFY1.8%
SpS47.17
BVpS13.83
TBVpS13.7
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 6.8% | ||
| ROCE | 4.46% | ||
| ROIC | 3.24% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.51% | ||
| OM | 2.41% | ||
| PM (TTM) | 1.99% | ||
| GM | 58.3% | ||
| 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 Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 154.6% | ||
| Cap/Sales | 3.34% | ||
| Interest Coverage | 135.66 | ||
| Cash Conversion | 14.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 2.27 |
F-Score4
WACC8.83%
ROIC/WACC0.37
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 Y76.46%
EPS Next 2Y54.73%
EPS Next 3Y68.22%
EPS Next 5Y37.49%
Revenue 1Y (TTM)-2.8%
Revenue growth 3Y10.96%
Revenue growth 5Y23.87%
Sales Q2Q%2.52%
Revenue Next Year4.84%
Revenue Next 2Y6.03%
Revenue Next 3Y9.32%
Revenue Next 5Y8.66%
EBIT growth 1Y-7.64%
EBIT growth 3Y-30.47%
EBIT growth 5YN/A
EBIT Next Year530.08%
EBIT Next 3Y108.34%
EBIT Next 5Y62.22%
FCF growth 1Y-7.58%
FCF growth 3Y-0.13%
FCF growth 5YN/A
OCF growth 1Y-44%
OCF growth 3Y6.08%
OCF growth 5YN/A