The Lovesac Co.
Find Ratings Reports
-0.32 |
-4.78%
LOVESAC CO (THE)'s gross profit margin for the third quarter of its fiscal year 2019 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. LOVESAC CO (THE) has average liquidity. Currently, the Quick Ratio is 1.15 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 20.20% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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| Income Statement | Q3 FY19 | Q3 FY18 |
|---|---|---|
| Net Sales ($mil) | 52.1 | 41.69 |
| EBITDA ($mil) | -5.32 | -1.19 |
| EBIT ($mil) | -6.69 | -2.28 |
| Net Income ($mil) | -6.75 | -2.49 |
| Balance Sheet | Q3 FY19 | Q3 FY18 |
|---|---|---|
| Cash & Equiv. ($mil) | 27.9 | 44.68 |
| Total Assets ($mil) | 118.75 | 96.77 |
| Total Debt ($mil) | 0.0 | 0.0 |
| Equity ($mil) | 84.45 | 70.25 |
| Profitability | Q3 FY19 | Q3 FY18 |
|---|---|---|
| Gross Profit Margin | 50.39 | 54.9 |
| EBITDA Margin | -10.2 | -2.86 |
| Operating Margin | -12.85 | -5.46 |
| Sales Turnover | 1.73 | 0.0 |
| Return on Assets | -10.25 | 0.0 |
| Return on Equity | -14.42 | 0.0 |
| Debt | Q3 FY19 | Q3 FY18 |
|---|---|---|
| Current Ratio | 3.0 | 3.13 |
| Debt/Capital | 0.0 | 0.0 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q3 FY19 | Q3 FY18 |
|---|---|---|
| Shares outstanding (mil) | 14.54 | 13.54 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.46 | -0.19 |
| Book value / share | 5.81 | 5.19 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 305115.0 | 390468.0 |
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. Conducting a second comparison, its price-to-book ratio of 1.17 indicates a significant discount versus the S&P 500 average of 2.84 and a discount versus the subsector average of 2.21. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, LOVESAC CO (THE) proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LOVE NM | Peers 12.27 | LOVE NM | Peers 8.64 | |||||||||||||||||||||
|
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. |
Neutral. 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's P/CF is negative making the measure meaningless. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| LOVE NM | Peers 12.24 | LOVE NA | Peers 1.43 | |||||||||||||||||||||
|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. LOVE's ratio is negative making this valuation measure meaningless. |
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 1.17 | Peers 2.21 | LOVE 26.96 | Peers 12.44 | |||||||||||||||||||||
|
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. |
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 0.48 | Peers 1.01 | LOVE 101.93 | Peers 1.61 | |||||||||||||||||||||
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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. |
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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