The Lovesac Company
Find Ratings ReportsLOVESAC CO (THE)'s gross profit margin for the third quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. LOVESAC CO (THE) has very weak liquidity. Currently, the Quick Ratio is 0.48 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 17.28% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 154.04 | 134.78 |
EBITDA ($mil) | 1.39 | -7.67 |
EBIT ($mil) | -1.92 | -10.13 |
Net Income ($mil) | -2.34 | -7.36 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 37.74 | 3.83 |
Total Assets ($mil) | 436.27 | 407.4 |
Total Debt ($mil) | 161.82 | 151.0 |
Equity ($mil) | 185.5 | 158.17 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 57.42 | 48.15 |
EBITDA Margin | 0.9 | -5.68 |
Operating Margin | -1.25 | -7.51 |
Sales Turnover | 1.58 | 1.49 |
Return on Assets | 4.71 | 8.07 |
Return on Equity | 11.02 | 21.68 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 1.74 | 1.81 |
Debt/Capital | 0.47 | 0.49 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 15.49 | 15.19 |
Div / share | 0.0 | 0.0 |
EPS | -0.15 | -0.48 |
Book value / share | 11.98 | 10.41 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 249018.0 | 388459.0 |
HOLD. This stock's P/E ratio indicates a discount compared to an average of 24.98 for the Furniture and Related Product Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.88 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 12.21. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, LOVESAC CO (THE) proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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LOVE 17.73 | Peers 24.98 | LOVE 5.39 | Peers 10.17 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. LOVE is trading at a significant discount to its peers. |
Discount. 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 discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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LOVE 10.70 | Peers 14.29 | LOVE NM | Peers 0.92 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. LOVE is trading at a valuation on par with its peers. |
Neutral. 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's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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LOVE 1.88 | Peers 12.21 | LOVE -40.10 | Peers 81.60 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. LOVE is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, LOVE is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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LOVE 0.51 | Peers 1.14 | LOVE 13.09 | Peers 18.35 | |||||||||||||||||||||
Discount. 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 discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. LOVE significantly trails its peers on the basis of sales growth. |
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