LOVESAC CO/THE (LOVE)
US54738L1098 - Common Stock
We assign a fundamental rating of 4 out of 10 to LOVE. LOVE was compared to 66 industry peers in the Household Durables industry. While LOVE seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, LOVE is valued expensive at the moment.
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.
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.
1.2 Ratios
The Return On Assets of LOVE (2.04%) is worse than 60.94% of its industry peers.
LOVE has a worse Return On Equity (4.84%) than 60.94% of its industry peers.
LOVE's Return On Invested Capital of 2.11% is on the low side compared to the rest of the industry. LOVE is outperformed by 64.06% 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 12.05%.
The last Return On Invested Capital (2.11%) for LOVE is well below the 3 year average (8.63%), which needs to be investigated, but indicates that LOVE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 4.84% | ||
| ROIC | 2.11% |
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 Profit Margin of 1.41%. This is in the lower half of the industry: LOVE underperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of LOVE has declined.
The Operating Margin of LOVE (1.52%) is worse than 65.63% of its industry peers.
In the last couple of years the Operating Margin of LOVE has declined.
With an excellent Gross Margin value of 58.01%, LOVE belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
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 | 1.52% | ||
| PM (TTM) | 1.41% | ||
| GM | 58.01% |
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
LOVE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LOVE has been increased 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
LOVE has an Altman-Z score of 2.64. 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.
LOVE has a Altman-Z score (2.64) which is in line with 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 | 0 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.23
WACC9.03%
2.3 Liquidity
LOVE has a Current Ratio of 1.69. 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 1.69, LOVE is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
A Quick Ratio of 0.92 indicates that LOVE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.92, LOVE is in line with its industry, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.92 |
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.
Looking at the last year, LOVE shows a small growth in Revenue. The Revenue has grown by 7.53% in the last year.
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)7.53%
Revenue growth 3Y29.73%
Revenue growth 5Y33.38%
Sales Q2Q%-2.68%
3.2 Future
The Earnings Per Share is expected to grow by 14.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.47% on average over the next years. This is quite good.
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 2Y-0.47%
Revenue Next 3Y3.26%
Revenue Next 5Y10.47%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 77.53, the valuation of LOVE can be described as expensive.
Based on the Price/Earnings ratio, LOVE is valued a bit more expensive than 68.75% of the companies in the same industry.
LOVE is valuated expensively when we compare the Price/Earnings ratio to 28.77, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.83, which indicates a rather expensive current valuation of LOVE.
62.50% of the companies in the same industry are cheaper than LOVE, based on the Price/Forward Earnings ratio.
LOVE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.53 | ||
| Fwd PE | 19.83 |
4.2 Price Multiples
LOVE's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as LOVE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.5 | ||
| EV/EBITDA | 13.83 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.55%
EPS Next 3Y7.55%
5. Dividend
5.1 Amount
LOVE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LOVESAC CO/THE
NASDAQ:LOVE (12/18/2024, 2:32:07 PM)
26.36
-0.33 (-1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap406.73M
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.53 | ||
| Fwd PE | 19.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 4.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.52% | ||
| PM (TTM) | 1.41% | ||
| GM | 58.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-73.23%
EPS 3Y17.18%
EPS 5Y
EPS Q2Q%
EPS Next Y-17.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.53%
Revenue growth 3Y29.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y