15.12 USD
+0.16 (+1.07%)
15.11 USD
-0.01 (-0.07%)
We assign a fundamental rating of 4 out of 10 to LOVE. LOVE was compared to 60 industry peers in the Household Durables industry. While LOVE seems to be doing ok healthwise, 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
LOVE had positive earnings in the past year.
LOVE had a positive operating cash flow in the past year.
In the past 5 years LOVE has always been profitable.
Of the past 5 years LOVE 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.47%, LOVE is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
With a Return On Equity value of 3.84%, LOVE is not doing good in the industry: 61.67% of the companies in the same industry are doing better.
The Return On Invested Capital of LOVE (1.93%) is worse than 70.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LOVE is below the industry average of 9.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 3.84% | ||
| ROIC | 1.93% |
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 worse Profit Margin (1.05%) than 63.33% of its industry peers.
In the last couple of years the Profit Margin of LOVE has declined.
LOVE's Operating Margin of 1.38% is on the low side compared to the rest of the industry. LOVE is outperformed by 71.67% of its industry peers.
LOVE's Operating Margin has declined in the last couple of years.
The Gross Margin of LOVE (57.20%) is better than 95.00% of its industry peers.
In the last couple of years the Gross Margin of LOVE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.38% | ||
| PM (TTM) | 1.05% | ||
| GM | 57.2% |
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 1.98 indicates that LOVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
LOVE's Altman-Z score of 1.98 is on the low side compared to the rest of the industry. LOVE is outperformed by 71.67% 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 | 1.98 |
ROIC/WACC0.21
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.36 indicates that LOVE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.36, LOVE is doing worse than 85.00% of the companies in the same industry.
A Quick Ratio of 0.41 indicates that LOVE may have some problems paying its short term obligations.
LOVE has a Quick ratio of 0.41. This is amonst the worse of the industry: LOVE underperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
LOVE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.35%.
The earnings per share for LOVE have been decreasing by -40.79% on average. This is quite bad
Looking at the last year, LOVE shows a small growth in Revenue. The Revenue has grown by 0.13% in the last year.
Measured over the past years, LOVE shows a very strong growth in Revenue. The Revenue has been growing by 23.87% on average per year.
EPS 1Y (TTM)-32.35%
EPS 3Y-40.79%
EPS 5YN/A
EPS Q2Q%-125%
Revenue 1Y (TTM)0.13%
Revenue growth 3Y10.96%
Revenue growth 5Y23.87%
Sales Q2Q%0.17%
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 Y-3.52%
EPS Next 2Y33.92%
EPS Next 3Y23.94%
EPS Next 5Y37.49%
Revenue Next Year2.34%
Revenue Next 2Y4.11%
Revenue Next 3Y5.64%
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
LOVE is valuated quite expensively with a Price/Earnings ratio of 65.74.
Compared to the rest of the industry, the Price/Earnings ratio of LOVE indicates a slightly more expensive valuation: LOVE is more expensive than 71.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. LOVE is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 14.05 indicates a correct valuation of LOVE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOVE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.40. LOVE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.74 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LOVE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
LOVE's earnings are expected to grow with 23.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.92%
EPS Next 3Y23.94%
5. Dividend
5.1 Amount
LOVE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
15.12
+0.16 (+1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners91.06%
Inst Owner Change-5.41%
Ins Owners4.47%
Ins Owner Change0.12%
Market Cap220.90M
Revenue(TTM)690.56M
Net Income(TTM)7.27M
Analysts83.33
Price Target25.16 (66.4%)
Short Float %30.91%
Short Ratio7.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)17.48%
Min EPS beat(2)-2.55%
Max EPS beat(2)37.51%
EPS beat(4)3
Avg EPS beat(4)14.05%
Min EPS beat(4)-2.55%
Max EPS beat(4)37.51%
EPS beat(8)6
Avg EPS beat(8)11.45%
EPS beat(12)9
Avg EPS beat(12)20.64%
EPS beat(16)13
Avg EPS beat(16)44.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.13%
Min Revenue beat(2)-4.49%
Max Revenue beat(2)-1.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-4.49%
Max Revenue beat(4)1.2%
Revenue beat(8)2
Avg Revenue beat(8)-2.31%
Revenue beat(12)5
Avg Revenue beat(12)-0.76%
Revenue beat(16)8
Avg Revenue beat(16)1.62%
PT rev (1m)-15.91%
PT rev (3m)-15.91%
EPS NQ rev (1m)-7.04%
EPS NQ rev (3m)-9.32%
EPS NY rev (1m)-21.4%
EPS NY rev (3m)-34.32%
Revenue NQ rev (1m)-6%
Revenue NQ rev (3m)-5.08%
Revenue NY rev (1m)-2.64%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.74 | ||
| Fwd PE | 14.05 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | 22.24 | ||
| P/B | 1.17 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 8 |
EPS(TTM)0.23
EY1.52%
EPS(NY)1.08
Fwd EY7.12%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)0.68
OCFY4.5%
SpS47.27
BVpS12.96
TBVpS12.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 3.84% | ||
| ROCE | 2.65% | ||
| ROIC | 1.93% | ||
| ROICexc | 2.06% | ||
| ROICexgc | 2.08% | ||
| OM | 1.38% | ||
| PM (TTM) | 1.05% | ||
| GM | 57.2% | ||
| 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-Score7
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 163.41% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 84.22 | ||
| Cash Conversion | 40.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 1.98 |
F-Score7
WACC9.13%
ROIC/WACC0.21
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)-32.35%
EPS 3Y-40.79%
EPS 5YN/A
EPS Q2Q%-125%
EPS Next Y-3.52%
EPS Next 2Y33.92%
EPS Next 3Y23.94%
EPS Next 5Y37.49%
Revenue 1Y (TTM)0.13%
Revenue growth 3Y10.96%
Revenue growth 5Y23.87%
Sales Q2Q%0.17%
Revenue Next Year2.34%
Revenue Next 2Y4.11%
Revenue Next 3Y5.64%
Revenue Next 5Y8.89%
EBIT growth 1Y47.83%
EBIT growth 3Y-30.47%
EBIT growth 5YN/A
EBIT Next Year401.24%
EBIT Next 3Y93.62%
EBIT Next 5Y61.44%
FCF growth 1Y-138.04%
FCF growth 3Y-0.13%
FCF growth 5YN/A
OCF growth 1Y-85.2%
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 4 / 10 to LOVE.
What is the valuation status for LOVE stock?
ChartMill assigns a valuation rating of 2 / 10 to LOVESAC CO/THE (LOVE). This can be considered as Overvalued.
What is the profitability of LOVE stock?
LOVESAC CO/THE (LOVE) has a profitability rating of 3 / 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 decline by -3.52% in the next year.