* Note: Prices are in Million (M) USD.
Description:
The Lovesac Company designs, manufactures and sells furniture. The company is headquartered in Stamford, Connecticut.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $84 M
Debt : $0 M
EBITDA : $31 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: TRADE & SERVICES
Industry: RETAIL-FURNITURE STORES
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 23.91
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $8 M
Average Revenue: $350 M
Revenue Converted To Free Cash FLow(%): 2%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $681 M
Revenue 4 Years Ago (2021-01-31): $321 M
Last 5 Years Average Revenue Growth: 22%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $17 M
Share Count 5 Years Ago (2021-01-31): $15 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.72
Trailing 12-Month Earnings Per Share (EPS): $0.79
Average Earnings Per Share (EPS): $0.76
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -41%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $18
52-Week Low: $12
Threshold Price (15% Above 52-Week Low): $14
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $263 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Value-Trade has assigned 17 points to above The Lovesac Company (LOVE) stock.
Last 5 Years Avg PE (Limited to last 5 years of EPS data) 20, Fair Value PE 12, Industry Based PE is 13 and Growth based PE is 15. Based on these all values average assigned is 15.00.
Value-Trades has assined P/E value 15.00. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.76.
The fair value of The Lovesac Company (LOVE) stock should be (15.00 x $0.76) = $11.4
