Lovesac Co

Consumer Discretionary
Other Specialty Stores
www.lovesac.com

Earnings Score
Moat Score

Market Cap $590.30M
PE 60
Debt $NaN
Cash $72.13M
EV $NaN
FCF $18.53M

Earnings

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Sales & Net Margins

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Earnings	$9.79M
EBIT	$13.04M
ROE	5%
ROA	3%
FCF	$18.53M
Equity	$202.14M
Growth Stability	81%
PE	60.3
PEG	-3.22
PB	2.92
P/FCF	31.85
P/S	0.85
Price/Cash	0.12
Net Margins	-7%
Gross Margins	58%
Op. Margins	2%
Earnings CAGR	-6%
Sales Growth YoY	1%
Sales Growth QoQ	18%
Sales CAGR	36%
FCF CAGR	4%
Equity CAGR	31%
Earnings Stability	-0.28
Earnings Growth YoY	1K%

Earnings Growth QoQ	-55%
Earnings CAGR 5Y	-19%
Sales CAGR 5Y	32%
FCF CAGR 5Y	10%
Equity CAGR 5Y	26%
Earnings CAGR 3Y	17%
Sales CAGR 3Y	17%
FCF CAGR 3Y	62%
Equity CAGR 3Y	17%
Market Cap	$590.30M
Revenue	$693.78M
Assets	$481.08M
Cash	$72.13M
Shares Outstanding	15.55M
Earnings Score	6%
Moat Score	32%
Working Capital	79.08M
Current Ratio	1.69
Gross Profit	$402.49M
Shares Growth 3y	1%
Equity Growth QoQ	-2%
Equity Growth YoY	8%

Assets & ROA

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Stockholders Equity & ROE

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The Lovesac Co designs, manufactures and sells alternative furniture which is comprised of modular couches called sactionals and premium foam beanbag chairs called sacs. It also offers other accessories such as blankets, footsacs, and throw pillows. Its products are sold across the United States through its website or company-owned retail stores which are used in homes and offices. Most of the firm's revenue gets derives from the sale of Sactionals.

SEC Filings

Direct access to Lovesac Co (LOVE) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Aug 04
- 10-Q May 05
- 10-K Feb 04
2023
- 10-Q Oct 29
- 10-Q Jul 30
- 10-Q Apr 30
- 10-K Jan 29
2022
- 10-Q Oct 30
- 10-Q Jul 31
- 10-Q May 01
- 10-K Jan 30

Sector Comparison

How does Lovesac Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Lovesac Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -6%

Stability -28%

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Lovesac Co Discounted Cash Flow

Fully customizable DCF calculator online for Lovesac Co.

Years

Calculation mode

= $236M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$19M	$19M	$20M	$21M	$21M	$22M	$23M	$24M	$25M	$25M	$26M	$263M
DCF		$17M	$16M	$15M	$15M	$14M	$13M	$12M	$11M	$11M	$10M	$101M
Value	$236M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	02/2018	02/2019	02/2020	01/2021	01/2022	01/2023	02/2024	TTM
Net Margins	-7%	-21%	-7%	5%	9%	4%	3%	-7%
ROA	-	-6%	-12%	9%	10%	9%	7%	3%
ROE	-	-44%	-17%	14%	29%	15%	11%	5%

Bad Net Margins (-6.51%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	02/2018	02/2019	02/2020	01/2021	01/2022	01/2023	02/2024	TTM
Debt over FCF	-	-	-	2.86	-	-	-	-
Debt over Equity	-	-	-	0.85	-	-	-	-
Growth Stability	-	-	-	-	-	100%	81%	81%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Neutral Graham’s Stability (81%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	02/2018	02/2019	02/2020	01/2021	01/2022	01/2023	02/2024	CAGR 5Y
Revenue YoY growth	-	63%	41%	37%	55%	31%	7%	32%
Earnings YoY growth	-	415%	-56%	-197%	212%	-38%	-16%	-19%
Equity YoY growth	-	233%	14%	20%	45%	24%	13%	26%
FCF YoY growth	-	89%	21%	-250%	-44%	-357%	-202%	10%