Lovesac Company
Find Ratings ReportsLOVESAC CO (THE)'s gross profit margin for the second quarter of its fiscal year 2021 has increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the subsector when comparing revenue growth, but not when comparing net income growth. LOVESAC CO (THE) has weak liquidity. Currently, the Quick Ratio is 0.94 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 42.91% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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| Income Statement | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Net Sales ($mil) | 102.45 | 61.95 |
| EBITDA ($mil) | 10.61 | 0.51 |
| EBIT ($mil) | 9.01 | -1.04 |
| Net Income ($mil) | 8.45 | -1.11 |
| Balance Sheet | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Cash & Equiv. ($mil) | 68.49 | 54.83 |
| Total Assets ($mil) | 281.25 | 135.33 |
| Total Debt ($mil) | 98.24 | 0.0 |
| Equity ($mil) | 116.93 | 81.82 |
| Profitability | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Gross Profit Margin | 57.62 | 50.13 |
| EBITDA Margin | 10.35 | 0.81 |
| Operating Margin | 8.79 | -1.68 |
| Sales Turnover | 1.39 | 1.93 |
| Return on Assets | 12.33 | -7.97 |
| Return on Equity | 29.67 | -13.18 |
| Debt | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Current Ratio | 2.0 | 2.24 |
| Debt/Capital | 0.46 | 0.0 |
| Interest Expense | 0.05 | 0.04 |
| Interest Coverage | 195.85 | -25.98 |
| Share Data | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Shares outstanding (mil) | 15.11 | 14.53 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.52 | -0.08 |
| Book value / share | 7.74 | 5.63 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 387071.0 | 416310.0 |
HOLD. LOVESAC CO (THE)'s P/E ratio indicates a premium compared to an average of 26.30 for the Furniture and Related Product Manufacturing subsector and a premium compared to the S&P 500 average of 27.96. For additional comparison, its price-to-book ratio of 9.09 indicates a significant premium versus the S&P 500 average of 4.47 and a significant premium versus the subsector average of 2.93. The price-to-sales ratio is below the S&P 500 average, but well above the subsector average. Upon assessment of these and other key valuation criteria, LOVESAC CO (THE) proves to trade at a premium to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LOVE 32.28 | Peers 13.55 | LOVE 36.67 | Peers 14.30 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. LOVE is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. LOVE is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| LOVE 47.55 | Peers 16.17 | LOVE 4.43 | Peers 0.61 | |||||||||||||||||||||
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Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. LOVE is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. LOVE trades at a significant premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| LOVE 9.09 | Peers 2.93 | LOVE 390.66 | Peers 88.64 | |||||||||||||||||||||
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Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. LOVE is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. LOVE is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| LOVE 2.73 | Peers 1.80 | LOVE 49.57 | Peers 15.21 | |||||||||||||||||||||
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Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. LOVE is trading at a significant premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. LOVE has a sales growth rate that significantly exceeds its peers. |
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