Lovesac Company
Find Ratings Reports
2.10 |
3.50%
LOVESAC CO (THE)'s gross profit margin for the third quarter of its fiscal year 2020 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 0.92 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained unchanged 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 | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 74.74 | 52.1 |
| EBITDA ($mil) | 4.39 | -5.32 |
| EBIT ($mil) | 2.53 | -6.69 |
| Net Income ($mil) | 2.48 | -6.75 |
| Balance Sheet | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 47.69 | 27.9 |
| Total Assets ($mil) | 151.13 | 118.75 |
| Total Debt ($mil) | 0.0 | 0.0 |
| Equity ($mil) | 85.25 | 84.45 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 55.27 | 50.39 |
| EBITDA Margin | 5.86 | -10.2 |
| Operating Margin | 3.39 | -12.85 |
| Sales Turnover | 1.87 | 1.73 |
| Return on Assets | -1.03 | -10.25 |
| Return on Equity | -1.83 | -14.43 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 2.08 | 3.0 |
| Debt/Capital | 0.0 | 0.0 |
| Interest Expense | 0.05 | 0.0 |
| Interest Coverage | 46.91 | 0.0 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 14.68 | 14.54 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.16 | -0.46 |
| Book value / share | 5.81 | 5.81 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 402844.0 | 319991.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 9.39 indicates a significant premium versus the S&P 500 average of 4.14 and a significant premium versus the subsector average of 3.26. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly above the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, LOVESAC CO (THE) seems to be trading at a premium to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LOVE NM | Peers 16.93 | LOVE 24.72 | Peers 10.86 | |||||||||||||||||||||
|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. LOVE's P/E is negative making this valuation measure meaningless. |
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 165.18 | Peers 16.73 | LOVE NA | Peers 4.70 | |||||||||||||||||||||
|
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. |
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. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| LOVE 9.39 | Peers 3.26 | LOVE 84.53 | Peers 46.63 | |||||||||||||||||||||
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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 2.83 | Peers 1.88 | LOVE 37.90 | Peers 5.88 | |||||||||||||||||||||
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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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