LOVESAC CO/THE (LOVE) Stock Fundamental Analysis
USA - NASDAQ:LOVE - US54738L1098 - Common Stock
13.39 USD
+0.28 (+2.14%)
13.43 USD
+0.04 (+0.3%)
LOVE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. LOVE has only an average score on both its financial health and profitability. 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.
LOVE had a positive operating cash flow in the past year.
Each year in the past 5 years LOVE has 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 comparable to the rest of the industry.
LOVE has a Return On Invested Capital of 3.47%. This is in the lower half of the industry: LOVE underperforms 63.93% 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 10.21%.
| 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's Profit Margin of 1.87% is on the low side compared to the rest of the industry. LOVE is outperformed by 60.66% of its industry peers.
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 68.85% 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 95.08% of the companies in the same industry.
LOVE's Gross Margin has improved in the last couple of years.
| 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.
LOVE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LOVE has more shares outstanding
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
LOVE has an Altman-Z score of 2.07. 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 of 2.07. This is in the lower half of the industry: LOVE underperforms 68.85% 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 | 2.07 |
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.
The Current ratio of LOVE (1.52) is worse than 78.69% of its industry peers.
A Quick Ratio of 0.53 indicates that LOVE may have some problems paying its short term obligations.
With a Quick ratio value of 0.53, LOVE is not doing good in the industry: 73.77% 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
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.
The Revenue has decreased by -0.50% in the past year.
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
Based on estimates for the next years, LOVE will show a very strong growth in Earnings Per Share. The EPS will grow by 37.49% on average per year.
The Revenue is expected to grow by 8.89% on average over the next years. This is quite good.
EPS Next Y22.74%
EPS Next 2Y42.53%
EPS Next 3Y42.16%
EPS Next 5Y37.49%
Revenue Next Year5.12%
Revenue Next 2Y6.31%
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.
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 21.25, the valuation of LOVE can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as LOVE.
When comparing the Price/Earnings ratio of LOVE to the average of the S&P500 Index (25.83), we can say LOVE is valued inline with the index average.
With a Price/Forward Earnings ratio of 10.99, the valuation of LOVE can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOVE indicates a somewhat cheap valuation: LOVE is cheaper than 62.30% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, LOVE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.25 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
LOVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LOVE is cheaper than 90.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.84 |
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 42.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y42.53%
EPS Next 3Y42.16%
5. Dividend
5.1 Amount
No dividends for LOVE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.39
+0.28 (+2.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.39%
Inst Owner Change-0.55%
Ins Owners4.46%
Ins Owner Change2.55%
Market Cap195.63M
Revenue(TTM)690.30M
Net Income(TTM)12.89M
Analysts83.33
Price Target29.92 (123.45%)
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 | 21.25 | ||
| Fwd PE | 10.99 | ||
| P/S | 0.28 | ||
| P/FCF | N/A | ||
| P/OCF | 18.46 | ||
| P/B | 0.99 | ||
| P/tB | 1 | ||
| EV/EBITDA | 4.84 |
EPS(TTM)0.63
EY4.71%
EPS(NY)1.22
Fwd EY9.1%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)0.73
OCFY5.42%
SpS47.25
BVpS13.52
TBVpS13.38
PEG (NY)0.93
PEG (5Y)N/A
Graham Number13.84
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%
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 | 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 | 2.07 |
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 Y22.74%
EPS Next 2Y42.53%
EPS Next 3Y42.16%
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 1Y66.84%
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
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.